Contact person(s) responsible: Accounting Manager, Nancy Wilson
Recommendation:
We recommend that Coalition develop controls and procedures to correctly allocate cost to all activities and funding sources that benefited from the costs.
Management’s Response:
Corrective action plan: OCADSV added an A...
Contact person(s) responsible: Accounting Manager, Nancy Wilson
Recommendation:
We recommend that Coalition develop controls and procedures to correctly allocate cost to all activities and funding sources that benefited from the costs.
Management’s Response:
Corrective action plan: OCADSV added an Administrative Cost Center to its General Ledger effective 10/01/22, the beginning of FY23 and began costing administrative payroll cost to that cost center. Additionally, the organization retrained administrative staff on direct cost allowable activities vs. administrative activities relative to timekeeping and timesheet preparation and the necessity of daily work descriptions supporting the hourly allocation. The Payroll policy that requires supervisors to review and sign off on timesheets and hourly allocations to cost centers was also reviewed.
Audit costs for FY22 will be allocated in accordance with 2 CFR 200.405 requirements. Beginning with FY23 all accounting and other admin payroll related cost will be allocated to the administration cost center with the exception of time related to specific
grant or other cost center.
FY22 grant expenditures were reviewed post year-end and a line-by-line review was conducted to bring the direct and indirect expense cumulative total into compliance with audit findings.
Any outstanding reports were adjusted to reflect the adjusted Life of grant to current date reporting.
Executive, Financial and Grant Management staff will, during FY24, complete the Online Grants Financial management Training available at onlinefmt.training.ojp.gov to improve knowledge and compliance with 2 CFR 200 guidance and requirements. The said training will be incorporated into onboarding processes for any newly hired employee who have direct responsibilities related to grant management and/or reporting.
Effective 6/21/23 and ongoing
UPDATED Management’s Response: OCADSV is continuing its’ efforts to implement controls and procedures for directly or indirectly allocating costs to Programs based on the benefit of the cost. The updated policies and procedures manual was approved December 2024 by the board. Direct allocation is continued to be used when a specific budget program line for funding exists, or where Program(s) can be identified. For
indirect cost allocation different allocation methods are used, depending on the cost type and only after the Program(s) where the costs benefited are identified. Processes implemented in FY24 and FY 25. Financial staff review grant expenditures line by line, using program budgets to actual provided by the accounting software as additional support, in preparing quarterly funding reimbursements for FY25.
Anticipated completion date: 09/30/24