45 CFR part 75 gives regulatory effect to the Department of Health and Human Services for 2 CFR sections 200.420 through 200.476. These sections provide the principles to be applied in establishing the allowability of certain items of cost. Section B2.4 of the Ohio Department of Health (ODH) Grants Administration Policy and Procedures (OGAPP) Manual states compensation must follow the Ohio Department of Administrative Services regulations and meet federal merit system or other requirements, where applicable. Federal guidelines require subrecipients to maintain Time and Activity or Time and Effort reporting to verify time worked for all employees who are charged less than 100% to a specific funding source. The Health District utilized its own employees for the development and implementation of the COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases subgrant. These employees performed work for multiple grants and/or general business throughout the period. Employees maintained timesheets, which documented the time, date and activities they worked on; however, this documentation was not in agreement with the actual payroll expense charged to the federal grant. We identified 2 out of 3 employees selected for testing had actual and projected payroll costs charged to the federal program totaling $1,385 and $3,436, respectively, that was not supported by Time and Activity or Time and Effort documentation. Additionally, 1 out of 3 employees selected for testing was charged less to the grant than was supported by their Time and Activity and Time and Effort documentation. These errors were due to a failure in the Health District’s internal control to ensure supporting Time and Activity and Time and Effort documentation was in agreement with actual costs charged to the federal grant. Failure to have adequate controls in place to complete accurate time and effort documentation and ensuring the documentation is in agreement with costs charged to federal grants could result in the Health District not meeting federal compliance requirements and result in questioned costs for federal programs. The Health District should implement and have controls in place to ensure salaries and wages are adequately documented and properly charged to the respective federal programs.
Criteria: Federal regulations 2 CFR Part 200, Sect 200.403-200.476 defines the rules for allowable costs for federal programs. The costs must be reasonable and necessary and include supporting documenatation for all expenditures including invoices, receipts and purchase orders. Condition: The Alliance had missing or incomplete documentation for costs assigned to the grant in addition to ineligible expenses and did not allocate indirect costs directly within the general ledger. Cause:Management's internal controls over expenses did not specifically address proper documentation and recording of expenses. Effect: As a result of not having proper documentation, the determination of whether or or not a cost is properly charged to a grant cannot be determined. Requests for reimbursements of grant funds are not prepared to accurately report direct and indirect costs. Additionally, sales taxes paid and costs outside ot the grant period are unallowable costs. Questioned Costs: None. Recommendation: We recommend that managemet adopt procedures that require complete documenation for all amounts expended, which includes all credit card charges. Amounts that are to be charged to the federal grant program should be reviewed to determine whether the cost is first, allowed, and if allowed, whether the cost is a direct or indirect cost. Direct and indirect costs should be properly allocated and recorded in the general ledger. Additionally, employees responsible for charging costs to the federal program should receive training in determining allowable and unallowable costs. Views of Responsible Officials: Management agrees with the finding and recommendation. See the attached Corrective Action Plan.
Criteria: Federal regulations 2 CFR Part 200, Sect 200.403-200.476 defines the rules for allowable costs for federal programs. The costs must be reasonable and necessary and include supporting documenatation for all expenditures including invoices, receipts and purchase orders. Condition: The Alliance had missing or incomplete documentation for costs assigned to the grant in addition to ineligible expenses and did not allocate indirect costs directly within the general ledger. Cause:Management's internal controls over expenses did not specifically address proper documentation and recording of expenses. Effect: As a result of not having proper documentation, the determination of whether or or not a cost is properly charged to a grant cannot be determined. Requests for reimbursements of grant funds are not prepared to accurately report direct and indirect costs. Additionally, sales taxes paid and costs outside ot the grant period are unallowable costs. Questioned Costs: None. Recommendation: We recommend that managemet adopt procedures that require complete documenation for all amounts expended, which includes all credit card charges. Amounts that are to be charged to the federal grant program should be reviewed to determine whether the cost is first, allowed, and if allowed, whether the cost is a direct or indirect cost. Direct and indirect costs should be properly allocated and recorded in the general ledger. Additionally, employees responsible for charging costs to the federal program should receive training in determining allowable and unallowable costs. Views of Responsible Officials: Management agrees with the finding and recommendation. See the attached Corrective Action Plan.
Finding Number: 2023-001 Finding Type: Federal award finding Federal Assistance Listing No.: 64.033 Program Name: VA Supportive Services for Veteran Families Program Federal Agency: U.S. Department of Veterans Affairs Pass-Through Entity: Transition Projects, Inc. Grant Number: SSVF 19-ZZ-127 Federal Award Year: 2022 through 2023 Control Deficiency Type: Material weakness over compliance Instance of Noncompliance: Yes Compliance Requirement: Allowable costs/cost principles Questioned Costs: None Repeat Finding: Yes Criteria: In accordance with Title 38, U.S. Code of Federal Regulations, Part 62, Supportive Services for Veteran Families Program, the determination of allowable costs must be made in accordance with the applicable Federal Cost Principles set forth in 2 CFR Part 200. Title 2, U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards, Subpart E – Cost Principles, states that payroll costs charged to a federal award must be supported by a system of internal controls which provides reasonable assurance that time charges are accurate, allowable, and properly allocated, and support the distribution of the employee’s salary among specific activities or costs objectives, if the employee works on projects supported by more than one Federal award or a Federal award and a non-Federal award. Condition: The organization lacked a system of internal controls to provide reasonable assurance related to the accuracy of salaries charged to the major program grant for employees working on projects supported by multiple funding sources. Payroll costs charged to the major program from January through March of 2023 were allocated based on estimates. However, we noted starting in April of 2023, the organization implemented a new timekeeping system and charges were based on actual timecard entries. Cause: The organization did not have written policies and procedures over cost principles establishing allowability or unallowability of certain items of costs in accordance with 2 CFR sections 200.420 through 200.476. The organization also did not have internal controls in place to ensure its timekeeping system for employees working on multiple funding sources was in compliance with federal requirements. Effect: For three of the twelve months, the distribution of employees’ salaries among specific activities did not fully comply with the cost principles specified in the Federal Regulations. Questioned Costs: No known or likely questioned costs greater than $25,000. Audit Recommendation: We recommend that the organization adopt written procedures establishing allowable or unallowable costs as well as implement the necessary procedures to ensure compensation costs are charged to federal awards based on a fair and equitable distribution method that is adequately documented and in accordance with Federal Regulations. Management’s Response: As of April 15, 2023, a new timecard system was implemented and charges to grants are supported by actual timecard entries. Timecards are approved by the employee and reviewed by a supervisor prior to payroll processing.
Allowable Costs/Cost Principles Finding Number: 2023-002 Assistance Listing Number and Title: AL # 93.323 COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases Federal Award Identification Number / Year: 06010012EO0222 & 06010012EO0323 / 2023 Federal Agency: U.S. Department of Health and Human Services Compliance Requirement: Allowable Costs/Cost Principles Pass-Through Entity: Ohio Department of Health Repeat Finding from Prior Audit? No Noncompliance / Material Weakness / Questioned Cost 45 CFR part 75 gives regulatory effect to the Department of Health and Human Services for 2 CFR sections 200.420 through 200.476. These sections provide the principles to be applied in establishing the allowability of certain items of cost. Section B2.4 of the Ohio Department of Health (ODH) Grants Administration Policy and Procedures (OGAPP) Manual states compensation must follow the Ohio Department of Administrative Services regulations and meet federal merit system or other requirements, where applicable. Federal guidelines require subrecipients to maintain Time and Activity or Time and Effort reporting to verify time worked for all employees who are charged less than 100% to a specific funding source. The Health District utilized its own employees for the development and implementation of the COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases subgrant. These employees performed work for multiple grants and/or general business throughout the period. Employees maintained timesheets, which documented the time, date and activities they worked on; however, this documentation was not in agreement with the actual payroll expense charged to the federal grant. We identified 2 out of 3 employees selected for testing had actual and projected payroll costs charged to the federal program totaling $13,366 and $45,588, respectively, that was not supported by Time and Activity or Time and Effort documentation. Failure to complete accurate time and effort documentation and ensuring the documentation is in agreement with costs charged to federal grants could result in the Health District not meeting federal compliance requirements and result in questioned costs for federal programs. The Health District should implement and have controls in place to ensure salaries and wages are adequately documented and properly charged to the respective federal programs. Officials’ Response: See Corrective Action Plan
Allowable Costs/Cost Principles Finding Number: 2023-002 Assistance Listing Number and Title: AL # 93.323 COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases Federal Award Identification Number / Year: 06010012EO0222 & 06010012EO0323 / 2023 Federal Agency: U.S. Department of Health and Human Services Compliance Requirement: Allowable Costs/Cost Principles Pass-Through Entity: Ohio Department of Health Repeat Finding from Prior Audit? No Noncompliance / Material Weakness / Questioned Cost 45 CFR part 75 gives regulatory effect to the Department of Health and Human Services for 2 CFR sections 200.420 through 200.476. These sections provide the principles to be applied in establishing the allowability of certain items of cost. Section B2.4 of the Ohio Department of Health (ODH) Grants Administration Policy and Procedures (OGAPP) Manual states compensation must follow the Ohio Department of Administrative Services regulations and meet federal merit system or other requirements, where applicable. Federal guidelines require subrecipients to maintain Time and Activity or Time and Effort reporting to verify time worked for all employees who are charged less than 100% to a specific funding source. The Health District utilized its own employees for the development and implementation of the COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases subgrant. These employees performed work for multiple grants and/or general business throughout the period. Employees maintained timesheets, which documented the time, date and activities they worked on; however, this documentation was not in agreement with the actual payroll expense charged to the federal grant. We identified 2 out of 3 employees selected for testing had actual and projected payroll costs charged to the federal program totaling $13,366 and $45,588, respectively, that was not supported by Time and Activity or Time and Effort documentation. Failure to complete accurate time and effort documentation and ensuring the documentation is in agreement with costs charged to federal grants could result in the Health District not meeting federal compliance requirements and result in questioned costs for federal programs. The Health District should implement and have controls in place to ensure salaries and wages are adequately documented and properly charged to the respective federal programs. Officials’ Response: See Corrective Action Plan
Federal Agency: U.S. Department of Agriculture & U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster, Temporary Assistance for Needy Families, & Medical Assistance Assistance Listing Numbers: 10.561, 93.558, and 93.778 Federal Award Identification Numbers and Years: 228MN300S6031 – 2023, 2201MNTANF – 2023, 2305MN5MAP - 2023 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbers: H55230010, H55214077, H55215048 Award Period: 2023 Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Costs included in the County’s Cost Allocation Plan should follow the principles to establish allowability or unallowability of certain items of cost (2 CFR sections 200.420 through 200.476), including retention of supporting documentation and documentation of the related controls. Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: 2 of 40 disbursements selected for testing lacked formal documentation of review and approval. Questioned costs: None Context: Lack of formal documentation of review and approval was noted with 2 of 40 disbursements selected for testing. Cause: At the time of testing, due to the cost allocation plan using a 2-year lag and then the audit occurring after year end, the item selected for testing was from about 3 years ago, and the County did not retain the supporting documentation of review and approval. Effect: Lack of proper controls result in error or unintended expenditures that could go undetected or not detected and corrected in a timely manner. Repeat Finding: Yes – 2022-0007 Recommendation: We recommend that the County retain documentation of review and approval of all expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Agriculture & U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster, Temporary Assistance for Needy Families, & Medical Assistance Assistance Listing Numbers: 10.561, 93.558, and 93.778 Federal Award Identification Numbers and Years: 228MN300S6031 – 2023, 2201MNTANF – 2023, 2305MN5MAP - 2023 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbers: H55230010, H55214077, H55215048 Award Period: 2023 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Costs included in the County’s Cost Allocation Plan should follow the principles to establish allowability or unallowability of certain items of cost (2 CFR sections 200.420 through 200.476), including retention of supporting documentation and documentation of the related controls. Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Building depreciation on the Cost Allocation Plan was overstated and did not agree to the actual building depreciation. Questioned costs: None Context: Building depreciation on the Cost Allocation Plan was overstated and did not agree to the actual building depreciation. Cause: The County did not adequately review the Cost Allocation Plan which was prepared by a third party vendor. Effect: Lack of proper controls result in error or unintended expenditures that could go undetected or not detected and corrected in a timely manner. Repeat Finding: No Recommendation: We recommend that the County retain documentation of review and approval of all expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Agriculture & U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster, Temporary Assistance for Needy Families, & Medical Assistance Assistance Listing Numbers: 10.561, 93.558, and 93.778 Federal Award Identification Numbers and Years: 228MN300S6031 – 2023, 2201MNTANF – 2023, 2305MN5MAP - 2023 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbers: H55230010, H55214077, H55215048 Award Period: 2023 Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Costs included in the County’s Cost Allocation Plan should follow the principles to establish allowability or unallowability of certain items of cost (2 CFR sections 200.420 through 200.476), including retention of supporting documentation and documentation of the related controls. Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: 2 of 40 disbursements selected for testing lacked formal documentation of review and approval. Questioned costs: None Context: Lack of formal documentation of review and approval was noted with 2 of 40 disbursements selected for testing. Cause: At the time of testing, due to the cost allocation plan using a 2-year lag and then the audit occurring after year end, the item selected for testing was from about 3 years ago, and the County did not retain the supporting documentation of review and approval. Effect: Lack of proper controls result in error or unintended expenditures that could go undetected or not detected and corrected in a timely manner. Repeat Finding: Yes – 2022-0007 Recommendation: We recommend that the County retain documentation of review and approval of all expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Agriculture & U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster, Temporary Assistance for Needy Families, & Medical Assistance Assistance Listing Numbers: 10.561, 93.558, and 93.778 Federal Award Identification Numbers and Years: 228MN300S6031 – 2023, 2201MNTANF – 2023, 2305MN5MAP - 2023 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbers: H55230010, H55214077, H55215048 Award Period: 2023 Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Costs included in the County’s Cost Allocation Plan should follow the principles to establish allowability or unallowability of certain items of cost (2 CFR sections 200.420 through 200.476), including retention of supporting documentation and documentation of the related controls. Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: 2 of 40 disbursements selected for testing lacked formal documentation of review and approval. Questioned costs: None Context: Lack of formal documentation of review and approval was noted with 2 of 40 disbursements selected for testing. Cause: At the time of testing, due to the cost allocation plan using a 2-year lag and then the audit occurring after year end, the item selected for testing was from about 3 years ago, and the County did not retain the supporting documentation of review and approval. Effect: Lack of proper controls result in error or unintended expenditures that could go undetected or not detected and corrected in a timely manner. Repeat Finding: Yes – 2022-0007 Recommendation: We recommend that the County retain documentation of review and approval of all expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Agriculture & U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster, Temporary Assistance for Needy Families, & Medical Assistance Assistance Listing Numbers: 10.561, 93.558, and 93.778 Federal Award Identification Numbers and Years: 228MN300S6031 – 2023, 2201MNTANF – 2023, 2305MN5MAP - 2023 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbers: H55230010, H55214077, H55215048 Award Period: 2023 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Costs included in the County’s Cost Allocation Plan should follow the principles to establish allowability or unallowability of certain items of cost (2 CFR sections 200.420 through 200.476), including retention of supporting documentation and documentation of the related controls. Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Building depreciation on the Cost Allocation Plan was overstated and did not agree to the actual building depreciation. Questioned costs: None Context: Building depreciation on the Cost Allocation Plan was overstated and did not agree to the actual building depreciation. Cause: The County did not adequately review the Cost Allocation Plan which was prepared by a third party vendor. Effect: Lack of proper controls result in error or unintended expenditures that could go undetected or not detected and corrected in a timely manner. Repeat Finding: No Recommendation: We recommend that the County retain documentation of review and approval of all expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Agriculture & U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster, Temporary Assistance for Needy Families, & Medical Assistance Assistance Listing Numbers: 10.561, 93.558, and 93.778 Federal Award Identification Numbers and Years: 228MN300S6031 – 2023, 2201MNTANF – 2023, 2305MN5MAP - 2023 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbers: H55230010, H55214077, H55215048 Award Period: 2023 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Costs included in the County’s Cost Allocation Plan should follow the principles to establish allowability or unallowability of certain items of cost (2 CFR sections 200.420 through 200.476), including retention of supporting documentation and documentation of the related controls. Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Building depreciation on the Cost Allocation Plan was overstated and did not agree to the actual building depreciation. Questioned costs: None Context: Building depreciation on the Cost Allocation Plan was overstated and did not agree to the actual building depreciation. Cause: The County did not adequately review the Cost Allocation Plan which was prepared by a third party vendor. Effect: Lack of proper controls result in error or unintended expenditures that could go undetected or not detected and corrected in a timely manner. Repeat Finding: No Recommendation: We recommend that the County retain documentation of review and approval of all expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Agriculture & U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster, Temporary Assistance for Needy Families, & Medical Assistance Assistance Listing Numbers: 10.561, 93.558, and 93.778 Federal Award Identification Numbers and Years: 228MN300S6031 – 2023, 2201MNTANF – 2023, 2305MN5MAP - 2023 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbers: H55230010, H55214077, H55215048 Award Period: 2023 Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Costs included in the County’s Cost Allocation Plan should follow the principles to establish allowability or unallowability of certain items of cost (2 CFR sections 200.420 through 200.476), including retention of supporting documentation and documentation of the related controls. Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: 2 of 40 disbursements selected for testing lacked formal documentation of review and approval. Questioned costs: None Context: Lack of formal documentation of review and approval was noted with 2 of 40 disbursements selected for testing. Cause: At the time of testing, due to the cost allocation plan using a 2-year lag and then the audit occurring after year end, the item selected for testing was from about 3 years ago, and the County did not retain the supporting documentation of review and approval. Effect: Lack of proper controls result in error or unintended expenditures that could go undetected or not detected and corrected in a timely manner. Repeat Finding: Yes – 2022-0007 Recommendation: We recommend that the County retain documentation of review and approval of all expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Agriculture & U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster, Temporary Assistance for Needy Families, & Medical Assistance Assistance Listing Numbers: 10.561, 93.558, and 93.778 Federal Award Identification Numbers and Years: 228MN300S6031 – 2023, 2201MNTANF – 2023, 2305MN5MAP - 2023 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbers: H55230010, H55214077, H55215048 Award Period: 2023 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Costs included in the County’s Cost Allocation Plan should follow the principles to establish allowability or unallowability of certain items of cost (2 CFR sections 200.420 through 200.476), including retention of supporting documentation and documentation of the related controls. Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Building depreciation on the Cost Allocation Plan was overstated and did not agree to the actual building depreciation. Questioned costs: None Context: Building depreciation on the Cost Allocation Plan was overstated and did not agree to the actual building depreciation. Cause: The County did not adequately review the Cost Allocation Plan which was prepared by a third party vendor. Effect: Lack of proper controls result in error or unintended expenditures that could go undetected or not detected and corrected in a timely manner. Repeat Finding: No Recommendation: We recommend that the County retain documentation of review and approval of all expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Finding Number: 2023-001 Finding Type: Federal award finding Federal Assistance Listing No.: 64.033 Program Name: VA Supportive Services for Veteran Families Program Federal Agency: U.S. Department of Veterans Affairs Pass-Through Entity: Transition Projects, Inc. Grant Number: SSVF 19-ZZ-127 Federal Award Year: 2022 through 2023 Control Deficiency Type: Material weakness over compliance Instance of Noncompliance: Yes Compliance Requirement: Allowable costs/cost principles Questioned Costs: None Repeat Finding: Yes Criteria: In accordance with Title 38, U.S. Code of Federal Regulations, Part 62, Supportive Services for Veteran Families Program, the determination of allowable costs must be made in accordance with the applicable Federal Cost Principles set forth in 2 CFR Part 200. Title 2, U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards, Subpart E – Cost Principles, states that payroll costs charged to a federal award must be supported by a system of internal controls which provides reasonable assurance that time charges are accurate, allowable, and properly allocated, and support the distribution of the employee’s salary among specific activities or costs objectives, if the employee works on projects supported by more than one Federal award or a Federal award and a non-Federal award. Condition: The organization lacked a system of internal controls to provide reasonable assurance related to the accuracy of salaries charged to the major program grant for employees working on projects supported by multiple funding sources. Payroll costs charged to the major program from January through March of 2023 were allocated based on estimates. However, we noted starting in April of 2023, the organization implemented a new timekeeping system and charges were based on actual timecard entries. Cause: The organization did not have written policies and procedures over cost principles establishing allowability or unallowability of certain items of costs in accordance with 2 CFR sections 200.420 through 200.476. The organization also did not have internal controls in place to ensure its timekeeping system for employees working on multiple funding sources was in compliance with federal requirements. Effect: For three of the twelve months, the distribution of employees’ salaries among specific activities did not fully comply with the cost principles specified in the Federal Regulations. Questioned Costs: No known or likely questioned costs greater than $25,000. Audit Recommendation: We recommend that the organization adopt written procedures establishing allowable or unallowable costs as well as implement the necessary procedures to ensure compensation costs are charged to federal awards based on a fair and equitable distribution method that is adequately documented and in accordance with Federal Regulations. Management’s Response: As of April 15, 2023, a new timecard system was implemented and charges to grants are supported by actual timecard entries. Timecards are approved by the employee and reviewed by a supervisor prior to payroll processing.
Allowable Costs/Cost Principles Finding Number: 2023-002 Assistance Listing Number and Title: AL # 93.323 COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases Federal Award Identification Number / Year: 06010012EO0222 & 06010012EO0323 / 2023 Federal Agency: U.S. Department of Health and Human Services Compliance Requirement: Allowable Costs/Cost Principles Pass-Through Entity: Ohio Department of Health Repeat Finding from Prior Audit? No Noncompliance / Material Weakness / Questioned Cost 45 CFR part 75 gives regulatory effect to the Department of Health and Human Services for 2 CFR sections 200.420 through 200.476. These sections provide the principles to be applied in establishing the allowability of certain items of cost. Section B2.4 of the Ohio Department of Health (ODH) Grants Administration Policy and Procedures (OGAPP) Manual states compensation must follow the Ohio Department of Administrative Services regulations and meet federal merit system or other requirements, where applicable. Federal guidelines require subrecipients to maintain Time and Activity or Time and Effort reporting to verify time worked for all employees who are charged less than 100% to a specific funding source. The Health District utilized its own employees for the development and implementation of the COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases subgrant. These employees performed work for multiple grants and/or general business throughout the period. Employees maintained timesheets, which documented the time, date and activities they worked on; however, this documentation was not in agreement with the actual payroll expense charged to the federal grant. We identified 2 out of 3 employees selected for testing had actual and projected payroll costs charged to the federal program totaling $13,366 and $45,588, respectively, that was not supported by Time and Activity or Time and Effort documentation. Failure to complete accurate time and effort documentation and ensuring the documentation is in agreement with costs charged to federal grants could result in the Health District not meeting federal compliance requirements and result in questioned costs for federal programs. The Health District should implement and have controls in place to ensure salaries and wages are adequately documented and properly charged to the respective federal programs. Officials’ Response: See Corrective Action Plan
Allowable Costs/Cost Principles Finding Number: 2023-002 Assistance Listing Number and Title: AL # 93.323 COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases Federal Award Identification Number / Year: 06010012EO0222 & 06010012EO0323 / 2023 Federal Agency: U.S. Department of Health and Human Services Compliance Requirement: Allowable Costs/Cost Principles Pass-Through Entity: Ohio Department of Health Repeat Finding from Prior Audit? No Noncompliance / Material Weakness / Questioned Cost 45 CFR part 75 gives regulatory effect to the Department of Health and Human Services for 2 CFR sections 200.420 through 200.476. These sections provide the principles to be applied in establishing the allowability of certain items of cost. Section B2.4 of the Ohio Department of Health (ODH) Grants Administration Policy and Procedures (OGAPP) Manual states compensation must follow the Ohio Department of Administrative Services regulations and meet federal merit system or other requirements, where applicable. Federal guidelines require subrecipients to maintain Time and Activity or Time and Effort reporting to verify time worked for all employees who are charged less than 100% to a specific funding source. The Health District utilized its own employees for the development and implementation of the COVID-19 Epidemiology and Laboratory Capacity for Infectious Diseases subgrant. These employees performed work for multiple grants and/or general business throughout the period. Employees maintained timesheets, which documented the time, date and activities they worked on; however, this documentation was not in agreement with the actual payroll expense charged to the federal grant. We identified 2 out of 3 employees selected for testing had actual and projected payroll costs charged to the federal program totaling $13,366 and $45,588, respectively, that was not supported by Time and Activity or Time and Effort documentation. Failure to complete accurate time and effort documentation and ensuring the documentation is in agreement with costs charged to federal grants could result in the Health District not meeting federal compliance requirements and result in questioned costs for federal programs. The Health District should implement and have controls in place to ensure salaries and wages are adequately documented and properly charged to the respective federal programs. Officials’ Response: See Corrective Action Plan
Federal Agency: U.S. Department of Agriculture & U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster, Temporary Assistance for Needy Families, & Medical Assistance Assistance Listing Numbers: 10.561, 93.558, and 93.778 Federal Award Identification Numbers and Years: 228MN300S6031 – 2023, 2201MNTANF – 2023, 2305MN5MAP - 2023 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbers: H55230010, H55214077, H55215048 Award Period: 2023 Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Costs included in the County’s Cost Allocation Plan should follow the principles to establish allowability or unallowability of certain items of cost (2 CFR sections 200.420 through 200.476), including retention of supporting documentation and documentation of the related controls. Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: 2 of 40 disbursements selected for testing lacked formal documentation of review and approval. Questioned costs: None Context: Lack of formal documentation of review and approval was noted with 2 of 40 disbursements selected for testing. Cause: At the time of testing, due to the cost allocation plan using a 2-year lag and then the audit occurring after year end, the item selected for testing was from about 3 years ago, and the County did not retain the supporting documentation of review and approval. Effect: Lack of proper controls result in error or unintended expenditures that could go undetected or not detected and corrected in a timely manner. Repeat Finding: Yes – 2022-0007 Recommendation: We recommend that the County retain documentation of review and approval of all expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Agriculture & U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster, Temporary Assistance for Needy Families, & Medical Assistance Assistance Listing Numbers: 10.561, 93.558, and 93.778 Federal Award Identification Numbers and Years: 228MN300S6031 – 2023, 2201MNTANF – 2023, 2305MN5MAP - 2023 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbers: H55230010, H55214077, H55215048 Award Period: 2023 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Costs included in the County’s Cost Allocation Plan should follow the principles to establish allowability or unallowability of certain items of cost (2 CFR sections 200.420 through 200.476), including retention of supporting documentation and documentation of the related controls. Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Building depreciation on the Cost Allocation Plan was overstated and did not agree to the actual building depreciation. Questioned costs: None Context: Building depreciation on the Cost Allocation Plan was overstated and did not agree to the actual building depreciation. Cause: The County did not adequately review the Cost Allocation Plan which was prepared by a third party vendor. Effect: Lack of proper controls result in error or unintended expenditures that could go undetected or not detected and corrected in a timely manner. Repeat Finding: No Recommendation: We recommend that the County retain documentation of review and approval of all expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Agriculture & U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster, Temporary Assistance for Needy Families, & Medical Assistance Assistance Listing Numbers: 10.561, 93.558, and 93.778 Federal Award Identification Numbers and Years: 228MN300S6031 – 2023, 2201MNTANF – 2023, 2305MN5MAP - 2023 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbers: H55230010, H55214077, H55215048 Award Period: 2023 Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Costs included in the County’s Cost Allocation Plan should follow the principles to establish allowability or unallowability of certain items of cost (2 CFR sections 200.420 through 200.476), including retention of supporting documentation and documentation of the related controls. Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: 2 of 40 disbursements selected for testing lacked formal documentation of review and approval. Questioned costs: None Context: Lack of formal documentation of review and approval was noted with 2 of 40 disbursements selected for testing. Cause: At the time of testing, due to the cost allocation plan using a 2-year lag and then the audit occurring after year end, the item selected for testing was from about 3 years ago, and the County did not retain the supporting documentation of review and approval. Effect: Lack of proper controls result in error or unintended expenditures that could go undetected or not detected and corrected in a timely manner. Repeat Finding: Yes – 2022-0007 Recommendation: We recommend that the County retain documentation of review and approval of all expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Agriculture & U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster, Temporary Assistance for Needy Families, & Medical Assistance Assistance Listing Numbers: 10.561, 93.558, and 93.778 Federal Award Identification Numbers and Years: 228MN300S6031 – 2023, 2201MNTANF – 2023, 2305MN5MAP - 2023 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbers: H55230010, H55214077, H55215048 Award Period: 2023 Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Costs included in the County’s Cost Allocation Plan should follow the principles to establish allowability or unallowability of certain items of cost (2 CFR sections 200.420 through 200.476), including retention of supporting documentation and documentation of the related controls. Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: 2 of 40 disbursements selected for testing lacked formal documentation of review and approval. Questioned costs: None Context: Lack of formal documentation of review and approval was noted with 2 of 40 disbursements selected for testing. Cause: At the time of testing, due to the cost allocation plan using a 2-year lag and then the audit occurring after year end, the item selected for testing was from about 3 years ago, and the County did not retain the supporting documentation of review and approval. Effect: Lack of proper controls result in error or unintended expenditures that could go undetected or not detected and corrected in a timely manner. Repeat Finding: Yes – 2022-0007 Recommendation: We recommend that the County retain documentation of review and approval of all expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Agriculture & U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster, Temporary Assistance for Needy Families, & Medical Assistance Assistance Listing Numbers: 10.561, 93.558, and 93.778 Federal Award Identification Numbers and Years: 228MN300S6031 – 2023, 2201MNTANF – 2023, 2305MN5MAP - 2023 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbers: H55230010, H55214077, H55215048 Award Period: 2023 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Costs included in the County’s Cost Allocation Plan should follow the principles to establish allowability or unallowability of certain items of cost (2 CFR sections 200.420 through 200.476), including retention of supporting documentation and documentation of the related controls. Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Building depreciation on the Cost Allocation Plan was overstated and did not agree to the actual building depreciation. Questioned costs: None Context: Building depreciation on the Cost Allocation Plan was overstated and did not agree to the actual building depreciation. Cause: The County did not adequately review the Cost Allocation Plan which was prepared by a third party vendor. Effect: Lack of proper controls result in error or unintended expenditures that could go undetected or not detected and corrected in a timely manner. Repeat Finding: No Recommendation: We recommend that the County retain documentation of review and approval of all expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Agriculture & U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster, Temporary Assistance for Needy Families, & Medical Assistance Assistance Listing Numbers: 10.561, 93.558, and 93.778 Federal Award Identification Numbers and Years: 228MN300S6031 – 2023, 2201MNTANF – 2023, 2305MN5MAP - 2023 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbers: H55230010, H55214077, H55215048 Award Period: 2023 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Costs included in the County’s Cost Allocation Plan should follow the principles to establish allowability or unallowability of certain items of cost (2 CFR sections 200.420 through 200.476), including retention of supporting documentation and documentation of the related controls. Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Building depreciation on the Cost Allocation Plan was overstated and did not agree to the actual building depreciation. Questioned costs: None Context: Building depreciation on the Cost Allocation Plan was overstated and did not agree to the actual building depreciation. Cause: The County did not adequately review the Cost Allocation Plan which was prepared by a third party vendor. Effect: Lack of proper controls result in error or unintended expenditures that could go undetected or not detected and corrected in a timely manner. Repeat Finding: No Recommendation: We recommend that the County retain documentation of review and approval of all expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Agriculture & U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster, Temporary Assistance for Needy Families, & Medical Assistance Assistance Listing Numbers: 10.561, 93.558, and 93.778 Federal Award Identification Numbers and Years: 228MN300S6031 – 2023, 2201MNTANF – 2023, 2305MN5MAP - 2023 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbers: H55230010, H55214077, H55215048 Award Period: 2023 Type of Finding: Material Weakness in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Costs included in the County’s Cost Allocation Plan should follow the principles to establish allowability or unallowability of certain items of cost (2 CFR sections 200.420 through 200.476), including retention of supporting documentation and documentation of the related controls. Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: 2 of 40 disbursements selected for testing lacked formal documentation of review and approval. Questioned costs: None Context: Lack of formal documentation of review and approval was noted with 2 of 40 disbursements selected for testing. Cause: At the time of testing, due to the cost allocation plan using a 2-year lag and then the audit occurring after year end, the item selected for testing was from about 3 years ago, and the County did not retain the supporting documentation of review and approval. Effect: Lack of proper controls result in error or unintended expenditures that could go undetected or not detected and corrected in a timely manner. Repeat Finding: Yes – 2022-0007 Recommendation: We recommend that the County retain documentation of review and approval of all expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Agriculture & U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster, Temporary Assistance for Needy Families, & Medical Assistance Assistance Listing Numbers: 10.561, 93.558, and 93.778 Federal Award Identification Numbers and Years: 228MN300S6031 – 2023, 2201MNTANF – 2023, 2305MN5MAP - 2023 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbers: H55230010, H55214077, H55215048 Award Period: 2023 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Costs included in the County’s Cost Allocation Plan should follow the principles to establish allowability or unallowability of certain items of cost (2 CFR sections 200.420 through 200.476), including retention of supporting documentation and documentation of the related controls. Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: Building depreciation on the Cost Allocation Plan was overstated and did not agree to the actual building depreciation. Questioned costs: None Context: Building depreciation on the Cost Allocation Plan was overstated and did not agree to the actual building depreciation. Cause: The County did not adequately review the Cost Allocation Plan which was prepared by a third party vendor. Effect: Lack of proper controls result in error or unintended expenditures that could go undetected or not detected and corrected in a timely manner. Repeat Finding: No Recommendation: We recommend that the County retain documentation of review and approval of all expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Agriculture & U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster, Temporary Assistance for Needy Families, & Child Support Enforcement Assistance Listing Numbers: 10.561, 93.558, and 93.563 Federal Award Identification Numbers and Years: 222MN101S2514 – 2022, 2201MNTANF – 2022, and 2201MNCSES – 2022 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbers: H55210010, H55214077, and H55214004 Award Period: 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Costs included in the County’s Cost Allocation Plan should follow the principles to establish allowability or unallowability of certain items of cost (2 CFR sections 200.420 through 200.476), including retention of supporting documentation and documentation of the related controls. Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: 1 of 40 disbursements selected for testing lacked formal documentation of review and approval. Questioned costs: None Context: Lack of formal documentation of review and approval was noted with 1 of 40 disbursements selected for testing. Cause: At the time of testing, due to the cost allocation plan using a 2-year lag and then the audit occurring after year end, the item selected for testing was from about 3 years ago, and the County did not retain the supporting documentation of review and approval. Effect: Lack of proper controls result in error or unintended expenditures that could go undetected or not detected and corrected in a timely manner. Repeat Finding: No Recommendation: We recommend that the County retain documentation of review and approval of all expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Agriculture & U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster, Temporary Assistance for Needy Families, & Child Support Enforcement Assistance Listing Numbers: 10.561, 93.558, and 93.563 Federal Award Identification Numbers and Years: 222MN101S2514 – 2022, 2201MNTANF – 2022, and 2201MNCSES – 2022 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbers: H55210010, H55214077, and H55214004 Award Period: 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Costs included in the County’s Cost Allocation Plan should follow the principles to establish allowability or unallowability of certain items of cost (2 CFR sections 200.420 through 200.476), including retention of supporting documentation and documentation of the related controls. Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: 1 of 40 disbursements selected for testing lacked formal documentation of review and approval. Questioned costs: None Context: Lack of formal documentation of review and approval was noted with 1 of 40 disbursements selected for testing. Cause: At the time of testing, due to the cost allocation plan using a 2-year lag and then the audit occurring after year end, the item selected for testing was from about 3 years ago, and the County did not retain the supporting documentation of review and approval. Effect: Lack of proper controls result in error or unintended expenditures that could go undetected or not detected and corrected in a timely manner. Repeat Finding: No Recommendation: We recommend that the County retain documentation of review and approval of all expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Agriculture & U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster, Temporary Assistance for Needy Families, & Child Support Enforcement Assistance Listing Numbers: 10.561, 93.558, and 93.563 Federal Award Identification Numbers and Years: 222MN101S2514 – 2022, 2201MNTANF – 2022, and 2201MNCSES – 2022 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbers: H55210010, H55214077, and H55214004 Award Period: 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Costs included in the County’s Cost Allocation Plan should follow the principles to establish allowability or unallowability of certain items of cost (2 CFR sections 200.420 through 200.476), including retention of supporting documentation and documentation of the related controls. Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: 1 of 40 disbursements selected for testing lacked formal documentation of review and approval. Questioned costs: None Context: Lack of formal documentation of review and approval was noted with 1 of 40 disbursements selected for testing. Cause: At the time of testing, due to the cost allocation plan using a 2-year lag and then the audit occurring after year end, the item selected for testing was from about 3 years ago, and the County did not retain the supporting documentation of review and approval. Effect: Lack of proper controls result in error or unintended expenditures that could go undetected or not detected and corrected in a timely manner. Repeat Finding: No Recommendation: We recommend that the County retain documentation of review and approval of all expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Agriculture & U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster, Temporary Assistance for Needy Families, & Child Support Enforcement Assistance Listing Numbers: 10.561, 93.558, and 93.563 Federal Award Identification Numbers and Years: 222MN101S2514 – 2022, 2201MNTANF – 2022, and 2201MNCSES – 2022 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbers: H55210010, H55214077, and H55214004 Award Period: 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Costs included in the County’s Cost Allocation Plan should follow the principles to establish allowability or unallowability of certain items of cost (2 CFR sections 200.420 through 200.476), including retention of supporting documentation and documentation of the related controls. Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: 1 of 40 disbursements selected for testing lacked formal documentation of review and approval. Questioned costs: None Context: Lack of formal documentation of review and approval was noted with 1 of 40 disbursements selected for testing. Cause: At the time of testing, due to the cost allocation plan using a 2-year lag and then the audit occurring after year end, the item selected for testing was from about 3 years ago, and the County did not retain the supporting documentation of review and approval. Effect: Lack of proper controls result in error or unintended expenditures that could go undetected or not detected and corrected in a timely manner. Repeat Finding: No Recommendation: We recommend that the County retain documentation of review and approval of all expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Agriculture & U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster, Temporary Assistance for Needy Families, & Child Support Enforcement Assistance Listing Numbers: 10.561, 93.558, and 93.563 Federal Award Identification Numbers and Years: 222MN101S2514 – 2022, 2201MNTANF – 2022, and 2201MNCSES – 2022 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbers: H55210010, H55214077, and H55214004 Award Period: 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Costs included in the County’s Cost Allocation Plan should follow the principles to establish allowability or unallowability of certain items of cost (2 CFR sections 200.420 through 200.476), including retention of supporting documentation and documentation of the related controls. Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: 1 of 40 disbursements selected for testing lacked formal documentation of review and approval. Questioned costs: None Context: Lack of formal documentation of review and approval was noted with 1 of 40 disbursements selected for testing. Cause: At the time of testing, due to the cost allocation plan using a 2-year lag and then the audit occurring after year end, the item selected for testing was from about 3 years ago, and the County did not retain the supporting documentation of review and approval. Effect: Lack of proper controls result in error or unintended expenditures that could go undetected or not detected and corrected in a timely manner. Repeat Finding: No Recommendation: We recommend that the County retain documentation of review and approval of all expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Agriculture & U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster, Temporary Assistance for Needy Families, & Child Support Enforcement Assistance Listing Numbers: 10.561, 93.558, and 93.563 Federal Award Identification Numbers and Years: 222MN101S2514 – 2022, 2201MNTANF – 2022, and 2201MNCSES – 2022 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbers: H55210010, H55214077, and H55214004 Award Period: 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Costs included in the County’s Cost Allocation Plan should follow the principles to establish allowability or unallowability of certain items of cost (2 CFR sections 200.420 through 200.476), including retention of supporting documentation and documentation of the related controls. Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: 1 of 40 disbursements selected for testing lacked formal documentation of review and approval. Questioned costs: None Context: Lack of formal documentation of review and approval was noted with 1 of 40 disbursements selected for testing. Cause: At the time of testing, due to the cost allocation plan using a 2-year lag and then the audit occurring after year end, the item selected for testing was from about 3 years ago, and the County did not retain the supporting documentation of review and approval. Effect: Lack of proper controls result in error or unintended expenditures that could go undetected or not detected and corrected in a timely manner. Repeat Finding: No Recommendation: We recommend that the County retain documentation of review and approval of all expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Agriculture & U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster, Temporary Assistance for Needy Families, & Child Support Enforcement Assistance Listing Numbers: 10.561, 93.558, and 93.563 Federal Award Identification Numbers and Years: 222MN101S2514 – 2022, 2201MNTANF – 2022, and 2201MNCSES – 2022 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbers: H55210010, H55214077, and H55214004 Award Period: 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Costs included in the County’s Cost Allocation Plan should follow the principles to establish allowability or unallowability of certain items of cost (2 CFR sections 200.420 through 200.476), including retention of supporting documentation and documentation of the related controls. Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: 1 of 40 disbursements selected for testing lacked formal documentation of review and approval. Questioned costs: None Context: Lack of formal documentation of review and approval was noted with 1 of 40 disbursements selected for testing. Cause: At the time of testing, due to the cost allocation plan using a 2-year lag and then the audit occurring after year end, the item selected for testing was from about 3 years ago, and the County did not retain the supporting documentation of review and approval. Effect: Lack of proper controls result in error or unintended expenditures that could go undetected or not detected and corrected in a timely manner. Repeat Finding: No Recommendation: We recommend that the County retain documentation of review and approval of all expenditures. Views of responsible officials: There is no disagreement with the audit finding.
Federal Agency: U.S. Department of Agriculture & U.S. Department of Health and Human Services Federal Program Name: Supplemental Nutrition Assistance Program Cluster, Temporary Assistance for Needy Families, & Child Support Enforcement Assistance Listing Numbers: 10.561, 93.558, and 93.563 Federal Award Identification Numbers and Years: 222MN101S2514 – 2022, 2201MNTANF – 2022, and 2201MNCSES – 2022 Passed Through Entity: Minnesota Department of Human Services Pass Through Numbers: H55210010, H55214077, and H55214004 Award Period: 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance Criteria or specific requirement: Costs included in the County’s Cost Allocation Plan should follow the principles to establish allowability or unallowability of certain items of cost (2 CFR sections 200.420 through 200.476), including retention of supporting documentation and documentation of the related controls. Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition: 1 of 40 disbursements selected for testing lacked formal documentation of review and approval. Questioned costs: None Context: Lack of formal documentation of review and approval was noted with 1 of 40 disbursements selected for testing. Cause: At the time of testing, due to the cost allocation plan using a 2-year lag and then the audit occurring after year end, the item selected for testing was from about 3 years ago, and the County did not retain the supporting documentation of review and approval. Effect: Lack of proper controls result in error or unintended expenditures that could go undetected or not detected and corrected in a timely manner. Repeat Finding: No Recommendation: We recommend that the County retain documentation of review and approval of all expenditures. Views of responsible officials: There is no disagreement with the audit finding.