Audit 40668

FY End
2022-06-30
Total Expended
$1.65M
Findings
8
Programs
8
Year: 2022 Accepted: 2023-02-07
Auditor: Hbe LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
45717 2022-003 Significant Deficiency - AB
45718 2022-003 Significant Deficiency - AB
45719 2022-003 Significant Deficiency - AB
45720 2022-003 Significant Deficiency - AB
622159 2022-003 Significant Deficiency - AB
622160 2022-003 Significant Deficiency - AB
622161 2022-003 Significant Deficiency - AB
622162 2022-003 Significant Deficiency - AB

Contacts

Name Title Type
YGCXM7NVAHB5 Carla Frase Auditee
4022231376 Patrick Meyer Auditor
No contacts on file

Notes to SEFA

Title: Subrecipients. Accounting Policies: Basis of Presentation. The accompanying Schedule of Expenditures of Federal Awards includes thefederal grant activity of Blue Rivers Area Agency on Aging and is presented on the accrual basis ofaccounting. Grant awards are considered expended when the expense transactions associated with thegrant occur. The information in this schedule is presented in accordance with the requirements of theUniform Guidance. Therefore, some amounts presented in this schedule may differ from amountspresented in, or used in preparation of, the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Agency did not provide any federal awards to subrecipients.

Finding Details

Significant Deficiency in Internal Controls over Compliance for Allowable Costs Identification data: U.S. Department of Health and Human Services Cluster, Special Programs for the Aging ? Title III, Part B ? Grants for Supportive Services and Senior Centers, AL No. 93.044, Special Programs for the Aging ? Title III, Part C ? Nutrition Services, AL No. 93.045, and Nutrition Services Incentive Program, AL No. 93.053, and U.S. Department of Transportation, Formula Grants for Rural Areas, AL No. 20.509 Criteria: The Agency?s agreements with the Department of Health and Human Services and Department of Transportation provide for allowable costs to be claimed for eligible program activities, including payroll-related expenses for program and administrative personnel. Condition and context: The Agency provides for the allocation of program and administrative personnel costs to the programs on the basis of time and effort or based on meal counts. Inconsistencies and weaknesses in the methodology and documentation supporting such allocations were identified, including the lack of consistent time study evaluation and documentation to support the allocations of payroll related costs for the programs. Cause: A breakdown in the Agency?s internal controls over allowable costs did not allow the Agency to maintain complete and thorough documentation to support allocations of payroll costs to the programs. Effect or potential effect: The control deficiency is a significant deficiency that prevented the Agency from maintaining sufficient documentation to support salary cost allocations to the programs. Recommendation: The Agency should review its system of internal controls over allowable costs, specifically related to the allocation methods for payroll-related costs, to determine improvements that can be made to ensure the Agency is maintaining sufficient, complete, and clear documentation to support its allocation methodologies. Time study data, if utilized, should be performed on a routine basis for all employees working in multiple programs to mitigate risks of inaccuracies. Responsible Official?s Response: The Agency has completed time studies for personnel who are allocated across multiple programs and will review documentation to ensure the time study data is applied consistently or updated when necessary to support the allocation. Documentation will be maintained to support the allocation methods.
Significant Deficiency in Internal Controls over Compliance for Allowable Costs Identification data: U.S. Department of Health and Human Services Cluster, Special Programs for the Aging ? Title III, Part B ? Grants for Supportive Services and Senior Centers, AL No. 93.044, Special Programs for the Aging ? Title III, Part C ? Nutrition Services, AL No. 93.045, and Nutrition Services Incentive Program, AL No. 93.053, and U.S. Department of Transportation, Formula Grants for Rural Areas, AL No. 20.509 Criteria: The Agency?s agreements with the Department of Health and Human Services and Department of Transportation provide for allowable costs to be claimed for eligible program activities, including payroll-related expenses for program and administrative personnel. Condition and context: The Agency provides for the allocation of program and administrative personnel costs to the programs on the basis of time and effort or based on meal counts. Inconsistencies and weaknesses in the methodology and documentation supporting such allocations were identified, including the lack of consistent time study evaluation and documentation to support the allocations of payroll related costs for the programs. Cause: A breakdown in the Agency?s internal controls over allowable costs did not allow the Agency to maintain complete and thorough documentation to support allocations of payroll costs to the programs. Effect or potential effect: The control deficiency is a significant deficiency that prevented the Agency from maintaining sufficient documentation to support salary cost allocations to the programs. Recommendation: The Agency should review its system of internal controls over allowable costs, specifically related to the allocation methods for payroll-related costs, to determine improvements that can be made to ensure the Agency is maintaining sufficient, complete, and clear documentation to support its allocation methodologies. Time study data, if utilized, should be performed on a routine basis for all employees working in multiple programs to mitigate risks of inaccuracies. Responsible Official?s Response: The Agency has completed time studies for personnel who are allocated across multiple programs and will review documentation to ensure the time study data is applied consistently or updated when necessary to support the allocation. Documentation will be maintained to support the allocation methods.
Significant Deficiency in Internal Controls over Compliance for Allowable Costs Identification data: U.S. Department of Health and Human Services Cluster, Special Programs for the Aging ? Title III, Part B ? Grants for Supportive Services and Senior Centers, AL No. 93.044, Special Programs for the Aging ? Title III, Part C ? Nutrition Services, AL No. 93.045, and Nutrition Services Incentive Program, AL No. 93.053, and U.S. Department of Transportation, Formula Grants for Rural Areas, AL No. 20.509 Criteria: The Agency?s agreements with the Department of Health and Human Services and Department of Transportation provide for allowable costs to be claimed for eligible program activities, including payroll-related expenses for program and administrative personnel. Condition and context: The Agency provides for the allocation of program and administrative personnel costs to the programs on the basis of time and effort or based on meal counts. Inconsistencies and weaknesses in the methodology and documentation supporting such allocations were identified, including the lack of consistent time study evaluation and documentation to support the allocations of payroll related costs for the programs. Cause: A breakdown in the Agency?s internal controls over allowable costs did not allow the Agency to maintain complete and thorough documentation to support allocations of payroll costs to the programs. Effect or potential effect: The control deficiency is a significant deficiency that prevented the Agency from maintaining sufficient documentation to support salary cost allocations to the programs. Recommendation: The Agency should review its system of internal controls over allowable costs, specifically related to the allocation methods for payroll-related costs, to determine improvements that can be made to ensure the Agency is maintaining sufficient, complete, and clear documentation to support its allocation methodologies. Time study data, if utilized, should be performed on a routine basis for all employees working in multiple programs to mitigate risks of inaccuracies. Responsible Official?s Response: The Agency has completed time studies for personnel who are allocated across multiple programs and will review documentation to ensure the time study data is applied consistently or updated when necessary to support the allocation. Documentation will be maintained to support the allocation methods.
Significant Deficiency in Internal Controls over Compliance for Allowable Costs Identification data: U.S. Department of Health and Human Services Cluster, Special Programs for the Aging ? Title III, Part B ? Grants for Supportive Services and Senior Centers, AL No. 93.044, Special Programs for the Aging ? Title III, Part C ? Nutrition Services, AL No. 93.045, and Nutrition Services Incentive Program, AL No. 93.053, and U.S. Department of Transportation, Formula Grants for Rural Areas, AL No. 20.509 Criteria: The Agency?s agreements with the Department of Health and Human Services and Department of Transportation provide for allowable costs to be claimed for eligible program activities, including payroll-related expenses for program and administrative personnel. Condition and context: The Agency provides for the allocation of program and administrative personnel costs to the programs on the basis of time and effort or based on meal counts. Inconsistencies and weaknesses in the methodology and documentation supporting such allocations were identified, including the lack of consistent time study evaluation and documentation to support the allocations of payroll related costs for the programs. Cause: A breakdown in the Agency?s internal controls over allowable costs did not allow the Agency to maintain complete and thorough documentation to support allocations of payroll costs to the programs. Effect or potential effect: The control deficiency is a significant deficiency that prevented the Agency from maintaining sufficient documentation to support salary cost allocations to the programs. Recommendation: The Agency should review its system of internal controls over allowable costs, specifically related to the allocation methods for payroll-related costs, to determine improvements that can be made to ensure the Agency is maintaining sufficient, complete, and clear documentation to support its allocation methodologies. Time study data, if utilized, should be performed on a routine basis for all employees working in multiple programs to mitigate risks of inaccuracies. Responsible Official?s Response: The Agency has completed time studies for personnel who are allocated across multiple programs and will review documentation to ensure the time study data is applied consistently or updated when necessary to support the allocation. Documentation will be maintained to support the allocation methods.
Significant Deficiency in Internal Controls over Compliance for Allowable Costs Identification data: U.S. Department of Health and Human Services Cluster, Special Programs for the Aging ? Title III, Part B ? Grants for Supportive Services and Senior Centers, AL No. 93.044, Special Programs for the Aging ? Title III, Part C ? Nutrition Services, AL No. 93.045, and Nutrition Services Incentive Program, AL No. 93.053, and U.S. Department of Transportation, Formula Grants for Rural Areas, AL No. 20.509 Criteria: The Agency?s agreements with the Department of Health and Human Services and Department of Transportation provide for allowable costs to be claimed for eligible program activities, including payroll-related expenses for program and administrative personnel. Condition and context: The Agency provides for the allocation of program and administrative personnel costs to the programs on the basis of time and effort or based on meal counts. Inconsistencies and weaknesses in the methodology and documentation supporting such allocations were identified, including the lack of consistent time study evaluation and documentation to support the allocations of payroll related costs for the programs. Cause: A breakdown in the Agency?s internal controls over allowable costs did not allow the Agency to maintain complete and thorough documentation to support allocations of payroll costs to the programs. Effect or potential effect: The control deficiency is a significant deficiency that prevented the Agency from maintaining sufficient documentation to support salary cost allocations to the programs. Recommendation: The Agency should review its system of internal controls over allowable costs, specifically related to the allocation methods for payroll-related costs, to determine improvements that can be made to ensure the Agency is maintaining sufficient, complete, and clear documentation to support its allocation methodologies. Time study data, if utilized, should be performed on a routine basis for all employees working in multiple programs to mitigate risks of inaccuracies. Responsible Official?s Response: The Agency has completed time studies for personnel who are allocated across multiple programs and will review documentation to ensure the time study data is applied consistently or updated when necessary to support the allocation. Documentation will be maintained to support the allocation methods.
Significant Deficiency in Internal Controls over Compliance for Allowable Costs Identification data: U.S. Department of Health and Human Services Cluster, Special Programs for the Aging ? Title III, Part B ? Grants for Supportive Services and Senior Centers, AL No. 93.044, Special Programs for the Aging ? Title III, Part C ? Nutrition Services, AL No. 93.045, and Nutrition Services Incentive Program, AL No. 93.053, and U.S. Department of Transportation, Formula Grants for Rural Areas, AL No. 20.509 Criteria: The Agency?s agreements with the Department of Health and Human Services and Department of Transportation provide for allowable costs to be claimed for eligible program activities, including payroll-related expenses for program and administrative personnel. Condition and context: The Agency provides for the allocation of program and administrative personnel costs to the programs on the basis of time and effort or based on meal counts. Inconsistencies and weaknesses in the methodology and documentation supporting such allocations were identified, including the lack of consistent time study evaluation and documentation to support the allocations of payroll related costs for the programs. Cause: A breakdown in the Agency?s internal controls over allowable costs did not allow the Agency to maintain complete and thorough documentation to support allocations of payroll costs to the programs. Effect or potential effect: The control deficiency is a significant deficiency that prevented the Agency from maintaining sufficient documentation to support salary cost allocations to the programs. Recommendation: The Agency should review its system of internal controls over allowable costs, specifically related to the allocation methods for payroll-related costs, to determine improvements that can be made to ensure the Agency is maintaining sufficient, complete, and clear documentation to support its allocation methodologies. Time study data, if utilized, should be performed on a routine basis for all employees working in multiple programs to mitigate risks of inaccuracies. Responsible Official?s Response: The Agency has completed time studies for personnel who are allocated across multiple programs and will review documentation to ensure the time study data is applied consistently or updated when necessary to support the allocation. Documentation will be maintained to support the allocation methods.
Significant Deficiency in Internal Controls over Compliance for Allowable Costs Identification data: U.S. Department of Health and Human Services Cluster, Special Programs for the Aging ? Title III, Part B ? Grants for Supportive Services and Senior Centers, AL No. 93.044, Special Programs for the Aging ? Title III, Part C ? Nutrition Services, AL No. 93.045, and Nutrition Services Incentive Program, AL No. 93.053, and U.S. Department of Transportation, Formula Grants for Rural Areas, AL No. 20.509 Criteria: The Agency?s agreements with the Department of Health and Human Services and Department of Transportation provide for allowable costs to be claimed for eligible program activities, including payroll-related expenses for program and administrative personnel. Condition and context: The Agency provides for the allocation of program and administrative personnel costs to the programs on the basis of time and effort or based on meal counts. Inconsistencies and weaknesses in the methodology and documentation supporting such allocations were identified, including the lack of consistent time study evaluation and documentation to support the allocations of payroll related costs for the programs. Cause: A breakdown in the Agency?s internal controls over allowable costs did not allow the Agency to maintain complete and thorough documentation to support allocations of payroll costs to the programs. Effect or potential effect: The control deficiency is a significant deficiency that prevented the Agency from maintaining sufficient documentation to support salary cost allocations to the programs. Recommendation: The Agency should review its system of internal controls over allowable costs, specifically related to the allocation methods for payroll-related costs, to determine improvements that can be made to ensure the Agency is maintaining sufficient, complete, and clear documentation to support its allocation methodologies. Time study data, if utilized, should be performed on a routine basis for all employees working in multiple programs to mitigate risks of inaccuracies. Responsible Official?s Response: The Agency has completed time studies for personnel who are allocated across multiple programs and will review documentation to ensure the time study data is applied consistently or updated when necessary to support the allocation. Documentation will be maintained to support the allocation methods.
Significant Deficiency in Internal Controls over Compliance for Allowable Costs Identification data: U.S. Department of Health and Human Services Cluster, Special Programs for the Aging ? Title III, Part B ? Grants for Supportive Services and Senior Centers, AL No. 93.044, Special Programs for the Aging ? Title III, Part C ? Nutrition Services, AL No. 93.045, and Nutrition Services Incentive Program, AL No. 93.053, and U.S. Department of Transportation, Formula Grants for Rural Areas, AL No. 20.509 Criteria: The Agency?s agreements with the Department of Health and Human Services and Department of Transportation provide for allowable costs to be claimed for eligible program activities, including payroll-related expenses for program and administrative personnel. Condition and context: The Agency provides for the allocation of program and administrative personnel costs to the programs on the basis of time and effort or based on meal counts. Inconsistencies and weaknesses in the methodology and documentation supporting such allocations were identified, including the lack of consistent time study evaluation and documentation to support the allocations of payroll related costs for the programs. Cause: A breakdown in the Agency?s internal controls over allowable costs did not allow the Agency to maintain complete and thorough documentation to support allocations of payroll costs to the programs. Effect or potential effect: The control deficiency is a significant deficiency that prevented the Agency from maintaining sufficient documentation to support salary cost allocations to the programs. Recommendation: The Agency should review its system of internal controls over allowable costs, specifically related to the allocation methods for payroll-related costs, to determine improvements that can be made to ensure the Agency is maintaining sufficient, complete, and clear documentation to support its allocation methodologies. Time study data, if utilized, should be performed on a routine basis for all employees working in multiple programs to mitigate risks of inaccuracies. Responsible Official?s Response: The Agency has completed time studies for personnel who are allocated across multiple programs and will review documentation to ensure the time study data is applied consistently or updated when necessary to support the allocation. Documentation will be maintained to support the allocation methods.