Finding Text
Federal Agency: U.S. Department of Health and Human Services
Federal Program Name: Substance Abuse Prevention and Treatment Block Grant (SABG); SOR Recovery Support Services
Assistance Listing Number: 93.959 and 93.788
Federal Award Identification Number and Year: K6103.01 – 2023, K6479 - 2023
Pass-Through Agency: Washington State Health Care Authority
Pass-Through Number(s): K6103.01, K6479
Award Period: July 1, 2022 – June 30, 2023; September 29, 2022 – September 28, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance – Allowable Costs and Activities,Cash Management, and Period of Performance; Other Matters
Criteria or specific requirement: Proper internal controls over cash management and indirect costs include the review and approval of grant draws prior to submission to the granting agency, to ensure accuracy of expenditures.
Condition: The payroll expenditures included on the February 2023 reimbursement request were determined based on February 2022 payroll activity, rather than the February 2023 payroll activity.
Questioned costs: None.
Context: Of the six reimbursement requests tested for SABG and five for SOR, noted one for each grant (same time period) in which incorrect pay periods were used to determine the amount of reimbursement to claim.
For the payroll transactions selected for testing, two out of 10 for SABG and two out of eight for SOR were for payroll costs incurred in February 2022 and were not within the grant period.
Cause: Payroll activity for the wrong year was used to determine the amount to claim for expense reimbursement.
Effect: Payroll expenditures were overcharged to the grant.
Repeat finding: Not a repeat finding.
Recommendation: We recommend all grant billings are reviewed and approved by an individual independent of the preparation process and that this review includes reviewing supporting documentation for the expenditures being claimed to ensure the amount charged to the grant is accurate.
Views of responsible officials: There is no disagreement with the audit finding