Finding Text
Federal Agency: U.S. Department of Health and Human Services
Federal Program Name: The Department of Health and Human Services/Centers for Disease Control and Prevention
Assistance Listing Number: 93.323
Federal Award Identification Number and Year: NU50CK000515 - 2021
Pass-Through Agency: State of Washington Department of Health
Pass-Through Number: CBO28488-0
Award Period: July 1, 2023 through July 31, 2024
Type of Finding:
• Material Weakness in Internal Control over Compliance – Allowable Costs
• Material Noncompliance (Modified Opinion)
Criteria or specific requirement: Expenses should be charged to each grant based on actual costs or an approved allocation plan.
Condition: The Organization allocated a flat 30% of payroll as payroll benefits. There was no internally approved allocation plan for payroll benefits.
Questioned costs: $77,756
Context: All payroll benefits charged to the grant were allocated using a rate not formally approved through an internally approved allocation plan. $77,756 is the difference between actual payroll benefits that should have been charged to the grant and the actual amount allocated to the grant.
Cause: Policies and procedures were not in place to properly allocate payroll benefits.
Effect: The Organization improperly overcharged $77,756 to the grant.
Recommendation: We recommend that the Organization implements policies and procedures to properly calculate and allocate payroll benefits.
Views of responsible officials: There is no disagreement with the audit finding.