Audit 38739

2022-003 U.S. Department of Health and Human Services, AL No 93.268 Allowable Costs/Cost Principles; Reporting SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL Condition: Controls in place did not provide for the accuracy of the calculated personnel expenses used in program reporting. During our testing, we identified 6 employee pay periods, of the 60 tested with personnel costs incorrectly calculated and reported for the program. As a result amounts reported and requested for reimbursement were not accurate. Criteria: Effective controls over grants insures allowable grant expenses are accurately captured and documented to support reimbursement requests and other reporting requirements. Internal worksheets and other documents prepared for reimbursement and other reporting should be reviewed for accuracy, prior to preparation and submission of the monthly reimbursement request. Cause: LCHD lacked adequate procedures over the accuracy and reporting of COVID-19 program related personnel expenses. This was a result of the immediate emergency response required due to COVID-19 and community needs, putting greater demand and limitations on staff resources. Effect: The testing identified 6 inaccurate pay calculations, resulting in a net $13.17 overbilled to the program in the testing sample. Unallowable costs could be required to be repaid to the grantor. Recommendation: Management should continue to evaluate procedures for capturing, reporting, and maintaining personnel and other expenses related to their various federal award programs. In order to insure accurate information is requested and reported. Procedures should include additional oversight and monitoring over original source data and monthly reporting. Grantee?s Response: Management concurs. During the period under audit management implemented changes to the capturing and reporting of the program personnel costs for the COVID-19 related programs. Changes included; separate time codes to identify the separate COVID-19 personnel costs; and improvements to personnel reports used to calculate and report program personnel costs. No errors were identified in this program after the changes were implemented. LCHD will continue to evaluate their controls with respect to current federal awards and requirements to insure accurate information captured and reported.

2022-003 U.S. Department of Health and Human Services, AL No 93.268 Allowable Costs/Cost Principles; Reporting SIGNIFICANT DEFICIENCY IN INTERNAL CONTROL Condition: Controls in place did not provide for the accuracy of the calculated personnel expenses used in program reporting. During our testing, we identified 6 employee pay periods, of the 60 tested with personnel costs incorrectly calculated and reported for the program. As a result amounts reported and requested for reimbursement were not accurate. Criteria: Effective controls over grants insures allowable grant expenses are accurately captured and documented to support reimbursement requests and other reporting requirements. Internal worksheets and other documents prepared for reimbursement and other reporting should be reviewed for accuracy, prior to preparation and submission of the monthly reimbursement request. Cause: LCHD lacked adequate procedures over the accuracy and reporting of COVID-19 program related personnel expenses. This was a result of the immediate emergency response required due to COVID-19 and community needs, putting greater demand and limitations on staff resources. Effect: The testing identified 6 inaccurate pay calculations, resulting in a net $13.17 overbilled to the program in the testing sample. Unallowable costs could be required to be repaid to the grantor. Recommendation: Management should continue to evaluate procedures for capturing, reporting, and maintaining personnel and other expenses related to their various federal award programs. In order to insure accurate information is requested and reported. Procedures should include additional oversight and monitoring over original source data and monthly reporting. Grantee?s Response: Management concurs. During the period under audit management implemented changes to the capturing and reporting of the program personnel costs for the COVID-19 related programs. Changes included; separate time codes to identify the separate COVID-19 personnel costs; and improvements to personnel reports used to calculate and report program personnel costs. No errors were identified in this program after the changes were implemented. LCHD will continue to evaluate their controls with respect to current federal awards and requirements to insure accurate information captured and reported.