2024-001 LATE FILING OF THE SINGLE AUDIT REPORTING PACKAGE WITH THE FEDERAL AUDIT CLEARINGHOUSE Federal Agency:U.S. Department of Health and Human Services Federal Program Title & Assistance Listing Number: 93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance Type of Finding: Significant Deficiency and Other Non-compliance Compliance Area: Reporting Questioned Costs: None Condition UVNR did not submit its Single Audit reporting package, including the audited financial statements, data collection form, schedule of findings and questioned costs, summary schedule of prior audit findings, and corrective action plan, within the required filing period. For the year ended December 31, 2024, the reporting package was required to be submitted no later than September 30, 2025. Criteria Title 2 CFR § 200.512 requires the audit, data collection form, and reporting package to be submitted to the Federal Audit Clearinghouse within the earlier of: 30 calendar days after the auditee receives the auditor’s reports; or Nine months after the end of the audit period. Accordingly, UVNR’s reporting package for the year ended December 31, 2024, was due no later than September 30, 2025. Effect The Single Audit reporting package was not available timely to Federal agencies, pass-through entities, grantors, and other users of the audit reports. Late submission may result in additional oversight, restrictions on Federal awards, delayed grant funding, or other actions by Federal agencies or pass-through entities. UVNR was not in compliance with the reporting requirements of 2 CFR § 200.512. Cause UVNR did not have adequate procedures to ensure that year-end financial records, the Schedule of Expenditures of Federal Awards, audit schedules, and supporting documentation were prepared and provided timely. The Organization also did not have an effective process to monitor the Federal Audit Clearinghouse filing deadline and the status of the audit.
2024-002 PAYROLL TIMESHEET REVIEW AND APPROVAL Federal Agency:U.S. Department of Health and Human Services Federal Program Title & Assistance Listing Number: 93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance Type of Finding: Significant Deficiency and Other Non-compliance Compliance Area: Allowable Costs Questioned Costs: None Condition During our testing of 55 payroll transactions charged to the SAMHSA program, we identified the following exceptions: 1. One of 55 sampled payroll transactions had two inconsistent timesheets. One timesheet was a signed PDF showing 13 hours, while an unsigned Excel timesheet showed 25 hours. The employee was paid based on the 25 hours reflected in the unsigned Excel timesheet. The timesheet used to process payroll did not contain the required manager’s approval; therefore, UVNR could not demonstrate supervisory approval of the hours paid. 2. One of 55 sampled payroll transactions contained a clerical error in the calculation of total hours. The timesheet reflected a total of 12 hours; however, the correct total was 14 hours. The error resulted in the employee being underpaid by two hours, and no subsequent correction was requested or processed. Criteria Title 2 CFR § 200.430 requires charges to Federal awards for salaries and wages to be based on records that accurately reflect the work performed. Such records must be supported by a system of internal control that provides reasonable assurance that personnel costs are accurate, allowable, and properly allocated to the Federal award. UVNR’s payroll control also requires timesheets and applicable leave records to be reviewed and approved by appropriate personnel before payroll is processed. Effect UVNR could not demonstrate that all hours paid and charged to the Federal program were supported by properly reviewed and approved time records. In addition, the clerical error resulted in an employee underpayment that was not subsequently corrected. Failure to maintain consistent review and approval procedures increases the risk that payroll expenses charged to Federal programs may be inaccurate, unsupported, improperly allocated, or result in employee overpayments or underpayments. Cause UVNR did not consistently ensure that the final timesheet used to process payroll was reviewed and approved. Additionally, the payroll review process did not include an adequate independent verification of timesheet calculations or a formal procedure to identify, document, and correct payroll discrepancies.