Audit 53981

FY End
2022-06-30
Total Expended
$778,911
Findings
8
Programs
12
Organization: Uncas Health District (CT)
Year: 2022 Accepted: 2023-05-17

Organization Exclusion Status:

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Contacts

Name Title Type
GTQHT5AEECF5 Patrick McCormack Auditee
8608231189 Susan Jones Auditor
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Notes to SEFA

Accounting Policies: NOTE A -ACCOUNTING BASISBASIC FINANCIAL STATEMENTSThe accounting policies of the District conform to accounting principles generally accepted in the United States of America as applicable to state and local governments.SCHEDULE OF EXPENDITURES OF FEDERAL AWARDSThe accompanying schedule of expenditures of federal awards has been prepared on the accrual basis consistent with the preparation of the basic financial statements. Information included in the schedule of expenditures of federal awards is presented in accordance with the requirements Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).For cost reimbursement awards, revenues are recognized to the extent of expenditures. Expenditures have been recognized to the extent the related obligation was incurred within the applicable grant period and liquidated within 90 days after the end of the grant period.For performance-based awards, revenues are recognized to the extent of performance achieved during the grant period.Ledge Light Health District has not elected to use the 10% de Minimis indirect cost rate. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

2022-002 REPORTING ALLOWABLE/ALLOCABLE COSTS Grantors: U.S Department of Health and Human Services Award Names: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) / Public Health Emergency Preparedness Award Year: Various Award Numbers: Various CFDA Numbers: 93.323 / 93.069 Criteria: Costs reported and submitted for reimbursement should be based on a cost allocation plan and agree to the underlying accounting records. Condition: During our audit testing, we noted cost allocations included on submitted grant reports did not reconcile directly back to the underlying supporting documentation (payroll records, etc.) Cause: No individuals at the District were allocating costs based on supporting documentation. Many costs were allocated in the accounting records (general ledger) based on what was budgeted for in the grants. Effect: There was no accounting trail between costs reported and supporting records. Questioned Costs: None noted. Recommendation: The District should implement controls to ensure all reporting and requests for reimbursements submitted to grantors reconcile with the underlying accounting records as allocated. Management?s Views and Corrective Action Plan: Management agrees with this finding and has outlined its resulting actions in a separately issued Corrective Action Plan.
2022-003 INTERNAL CONTROLS OVER ALLOWABLE COSTS Grantor: Various Award Name: Various Award Year: Various Award Numbers: Various CFDA Number: Various Criteria: Title 2, Chapter 2, part 200 of the Code of Federal Regulations (2 CFR Part 200) establishes cost principles for determining costs applicable to federal awards with nonprofit organizations. An important method of adhering to these cost principles and ensuring allowable and allocable costs are charged to federal programs is through the use of a cost allocation plan. As important as the plan is, internal controls over the cost allocation plan are just as necessary. Nonprofit organizations, local governments, and other grantees must maintain internal controls over the allocation of costs to ensure costs are not over or under allocated, consistency across programs, and that they are traceable back to the accounting records themselves. Condition: During our audit procedures, we noted that the District does not maintain a cost allocation plan and there were no internal controls in place to ensure the requirements referenced in the previous paragraph. The cost allocations as presented on grant financial reports were being made independently and without supporting documentation in the underlying accounting records. Cause: No cost allocation plan has been developed by the District. Effect: There is no linkage between the costs as reported to grantors in financial reports with the underlying accounting records. Questioned Costs: None noted. Recommendation: The District should develop a cost allocation plan and implement internal controls (periodic reconciliations, etc.) to ensure accuracy and consistency with allocations made using the plan. Management?s Views and Corrective Action Plan: Management agrees with this finding and has outlined its resulting actions in a separately issued Corrective Action Plan.
2022-002 REPORTING ALLOWABLE/ALLOCABLE COSTS Grantors: U.S Department of Health and Human Services Award Names: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) / Public Health Emergency Preparedness Award Year: Various Award Numbers: Various CFDA Numbers: 93.323 / 93.069 Criteria: Costs reported and submitted for reimbursement should be based on a cost allocation plan and agree to the underlying accounting records. Condition: During our audit testing, we noted cost allocations included on submitted grant reports did not reconcile directly back to the underlying supporting documentation (payroll records, etc.) Cause: No individuals at the District were allocating costs based on supporting documentation. Many costs were allocated in the accounting records (general ledger) based on what was budgeted for in the grants. Effect: There was no accounting trail between costs reported and supporting records. Questioned Costs: None noted. Recommendation: The District should implement controls to ensure all reporting and requests for reimbursements submitted to grantors reconcile with the underlying accounting records as allocated. Management?s Views and Corrective Action Plan: Management agrees with this finding and has outlined its resulting actions in a separately issued Corrective Action Plan.
2022-003 INTERNAL CONTROLS OVER ALLOWABLE COSTS Grantor: Various Award Name: Various Award Year: Various Award Numbers: Various CFDA Number: Various Criteria: Title 2, Chapter 2, part 200 of the Code of Federal Regulations (2 CFR Part 200) establishes cost principles for determining costs applicable to federal awards with nonprofit organizations. An important method of adhering to these cost principles and ensuring allowable and allocable costs are charged to federal programs is through the use of a cost allocation plan. As important as the plan is, internal controls over the cost allocation plan are just as necessary. Nonprofit organizations, local governments, and other grantees must maintain internal controls over the allocation of costs to ensure costs are not over or under allocated, consistency across programs, and that they are traceable back to the accounting records themselves. Condition: During our audit procedures, we noted that the District does not maintain a cost allocation plan and there were no internal controls in place to ensure the requirements referenced in the previous paragraph. The cost allocations as presented on grant financial reports were being made independently and without supporting documentation in the underlying accounting records. Cause: No cost allocation plan has been developed by the District. Effect: There is no linkage between the costs as reported to grantors in financial reports with the underlying accounting records. Questioned Costs: None noted. Recommendation: The District should develop a cost allocation plan and implement internal controls (periodic reconciliations, etc.) to ensure accuracy and consistency with allocations made using the plan. Management?s Views and Corrective Action Plan: Management agrees with this finding and has outlined its resulting actions in a separately issued Corrective Action Plan.
2022-002 REPORTING ALLOWABLE/ALLOCABLE COSTS Grantors: U.S Department of Health and Human Services Award Names: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) / Public Health Emergency Preparedness Award Year: Various Award Numbers: Various CFDA Numbers: 93.323 / 93.069 Criteria: Costs reported and submitted for reimbursement should be based on a cost allocation plan and agree to the underlying accounting records. Condition: During our audit testing, we noted cost allocations included on submitted grant reports did not reconcile directly back to the underlying supporting documentation (payroll records, etc.) Cause: No individuals at the District were allocating costs based on supporting documentation. Many costs were allocated in the accounting records (general ledger) based on what was budgeted for in the grants. Effect: There was no accounting trail between costs reported and supporting records. Questioned Costs: None noted. Recommendation: The District should implement controls to ensure all reporting and requests for reimbursements submitted to grantors reconcile with the underlying accounting records as allocated. Management?s Views and Corrective Action Plan: Management agrees with this finding and has outlined its resulting actions in a separately issued Corrective Action Plan.
2022-003 INTERNAL CONTROLS OVER ALLOWABLE COSTS Grantor: Various Award Name: Various Award Year: Various Award Numbers: Various CFDA Number: Various Criteria: Title 2, Chapter 2, part 200 of the Code of Federal Regulations (2 CFR Part 200) establishes cost principles for determining costs applicable to federal awards with nonprofit organizations. An important method of adhering to these cost principles and ensuring allowable and allocable costs are charged to federal programs is through the use of a cost allocation plan. As important as the plan is, internal controls over the cost allocation plan are just as necessary. Nonprofit organizations, local governments, and other grantees must maintain internal controls over the allocation of costs to ensure costs are not over or under allocated, consistency across programs, and that they are traceable back to the accounting records themselves. Condition: During our audit procedures, we noted that the District does not maintain a cost allocation plan and there were no internal controls in place to ensure the requirements referenced in the previous paragraph. The cost allocations as presented on grant financial reports were being made independently and without supporting documentation in the underlying accounting records. Cause: No cost allocation plan has been developed by the District. Effect: There is no linkage between the costs as reported to grantors in financial reports with the underlying accounting records. Questioned Costs: None noted. Recommendation: The District should develop a cost allocation plan and implement internal controls (periodic reconciliations, etc.) to ensure accuracy and consistency with allocations made using the plan. Management?s Views and Corrective Action Plan: Management agrees with this finding and has outlined its resulting actions in a separately issued Corrective Action Plan.
2022-002 REPORTING ALLOWABLE/ALLOCABLE COSTS Grantors: U.S Department of Health and Human Services Award Names: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) / Public Health Emergency Preparedness Award Year: Various Award Numbers: Various CFDA Numbers: 93.323 / 93.069 Criteria: Costs reported and submitted for reimbursement should be based on a cost allocation plan and agree to the underlying accounting records. Condition: During our audit testing, we noted cost allocations included on submitted grant reports did not reconcile directly back to the underlying supporting documentation (payroll records, etc.) Cause: No individuals at the District were allocating costs based on supporting documentation. Many costs were allocated in the accounting records (general ledger) based on what was budgeted for in the grants. Effect: There was no accounting trail between costs reported and supporting records. Questioned Costs: None noted. Recommendation: The District should implement controls to ensure all reporting and requests for reimbursements submitted to grantors reconcile with the underlying accounting records as allocated. Management?s Views and Corrective Action Plan: Management agrees with this finding and has outlined its resulting actions in a separately issued Corrective Action Plan.
2022-003 INTERNAL CONTROLS OVER ALLOWABLE COSTS Grantor: Various Award Name: Various Award Year: Various Award Numbers: Various CFDA Number: Various Criteria: Title 2, Chapter 2, part 200 of the Code of Federal Regulations (2 CFR Part 200) establishes cost principles for determining costs applicable to federal awards with nonprofit organizations. An important method of adhering to these cost principles and ensuring allowable and allocable costs are charged to federal programs is through the use of a cost allocation plan. As important as the plan is, internal controls over the cost allocation plan are just as necessary. Nonprofit organizations, local governments, and other grantees must maintain internal controls over the allocation of costs to ensure costs are not over or under allocated, consistency across programs, and that they are traceable back to the accounting records themselves. Condition: During our audit procedures, we noted that the District does not maintain a cost allocation plan and there were no internal controls in place to ensure the requirements referenced in the previous paragraph. The cost allocations as presented on grant financial reports were being made independently and without supporting documentation in the underlying accounting records. Cause: No cost allocation plan has been developed by the District. Effect: There is no linkage between the costs as reported to grantors in financial reports with the underlying accounting records. Questioned Costs: None noted. Recommendation: The District should develop a cost allocation plan and implement internal controls (periodic reconciliations, etc.) to ensure accuracy and consistency with allocations made using the plan. Management?s Views and Corrective Action Plan: Management agrees with this finding and has outlined its resulting actions in a separately issued Corrective Action Plan.