Audit 56457

Department of Health and Human Services Federal Financial Assistance Listing 93.958, All Awards Block Grants for Community Mental Health Services Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management, and Period of Performance Material Weakness in Internal Control over Compliance Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: There was no formal documentation of review of wage rates for eight employees selected for testing. There was no formal documented review for the calculation of indirect costs submitted for reimbursement for four months selected for testing. There was no formal documented review for seven reimbursement requests selected for testing. Cause: Washburn Center has designed internal controls over these areas; however, the controls were not formally documented. Effect: Failure to perform an independent review of reporting could result in a reasonable possibility that Washburn Center would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context: Nine employees out of 28 total were selected for testing for the program which made up $199,840 in payroll costs out of $736,089 total payroll costs. Four calculations of indirect costs out of 12 monthly calculations were selected for testing for the program which made up $53,741 indirect costs out of $89,416 total indirect costs. Seven requests for reimbursement submissions out of 22 total submissions were selected for testing for the program. Repeat Finding from Prior Years: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, cash management, and period of performance be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with the finding.

Department of Health and Human Services Federal Financial Assistance Listing 93.958, All Awards Block Grants for Community Mental Health Services Activities Allowable or Unallowed, Allowable Costs/Cost Principles, and Period of Performance Material Weakness in Internal Control over Compliance and Other Noncompliance Criteria: CFR 200.430 set forth the compensation for personal services standards non-federal entities other than states must follow when operating federal programs. Condition: Washburn Center has an internal control process designed to approve and calculate the payroll expenses and allocation of time to the program, but they did not maintain support for a true up of actual time spent on the program compared to the budget. Cause: The controls in place did not operate as designed and failed to detect that support was not maintained to support actual time spent working on the program versus the budget amount. Effect: Nine employees? wages did not include support for actual time spent working on the program. Questioned Costs: No questioned costs over $25,000. Context: Nine employees, accounting for $199,840, were selected for testing for the program from a total of 28 total employees that accounted for $736,089. Repeat Finding from Prior Years: No Recommendation: We recommend the procedures related to payroll expenses be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with the finding.

Department of Health and Human Services Federal Financial Assistance Listing 93.958, All Awards Block Grants for Community Mental Health Services Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management, and Period of Performance Material Weakness in Internal Control over Compliance Criteria: CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: There was no formal documentation of review of wage rates for eight employees selected for testing. There was no formal documented review for the calculation of indirect costs submitted for reimbursement for four months selected for testing. There was no formal documented review for seven reimbursement requests selected for testing. Cause: Washburn Center has designed internal controls over these areas; however, the controls were not formally documented. Effect: Failure to perform an independent review of reporting could result in a reasonable possibility that Washburn Center would not detect errors in the normal course of performing duties and correct them in a timely manner. Questioned Costs: None reported. Context: Nine employees out of 28 total were selected for testing for the program which made up $199,840 in payroll costs out of $736,089 total payroll costs. Four calculations of indirect costs out of 12 monthly calculations were selected for testing for the program which made up $53,741 indirect costs out of $89,416 total indirect costs. Seven requests for reimbursement submissions out of 22 total submissions were selected for testing for the program. Repeat Finding from Prior Years: No Recommendation: We recommend the procedures related to activities allowed or unallowed, allowable costs/cost principles, cash management, and period of performance be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with the finding.

Department of Health and Human Services Federal Financial Assistance Listing 93.958, All Awards Block Grants for Community Mental Health Services Activities Allowable or Unallowed, Allowable Costs/Cost Principles, and Period of Performance Material Weakness in Internal Control over Compliance and Other Noncompliance Criteria: CFR 200.430 set forth the compensation for personal services standards non-federal entities other than states must follow when operating federal programs. Condition: Washburn Center has an internal control process designed to approve and calculate the payroll expenses and allocation of time to the program, but they did not maintain support for a true up of actual time spent on the program compared to the budget. Cause: The controls in place did not operate as designed and failed to detect that support was not maintained to support actual time spent working on the program versus the budget amount. Effect: Nine employees? wages did not include support for actual time spent working on the program. Questioned Costs: No questioned costs over $25,000. Context: Nine employees, accounting for $199,840, were selected for testing for the program from a total of 28 total employees that accounted for $736,089. Repeat Finding from Prior Years: No Recommendation: We recommend the procedures related to payroll expenses be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with the finding.