Finding Text
Federal Agency: U.S. Department of Health and Human Services
Federal Program Name: Substance Abuse Prevention and Treatment Block Grant (SABG)
Assistance Listing Number: 93.959
Federal Award Identification Number and Year: K6103.01 – 2023, 1009592.16 - 2023
Pass-Through Agency: Washington State Health Care Authority; Beacon Health Options, Inc.
Pass-Through Number(s): K6103.01 and 1009592.16
Award Period: July 1, 2022 – June 30, 2023
Type of Finding: Material Weakness in Internal Control over Compliance – Allowable Costs and Activities; Other Matters
Criteria or specific requirement: Proper internal controls over time and effort are to be in place in order to enusre payroll costs are properly charged to grants.
Condition: Time sheets did not indicate the project/grant the employee worked on for the pay period to support allocation to the grant. For July 2022 through January 2023 payroll costs were charged 100% to either ALN 93.959 or ALN 93.788 and were not allocated based on the employee's time spent working in the programs. For February 2023 through June 2023 payroll costs were allocated to the grants based on the amount of expenses paid on behalf of program participants during the month for items such as rent, groceries, utilities, etc.
Questioned costs: None.
Context: For the payroll transactions selected for testing, all eight of the SABG payroll transactions were not supported by time and effort records.
Time and effort was not properly tracked during the audit period between the SABG and SOR program, however, based on the effort expended providing services to program participants, costs meet the allowable costs and activities requirements.
Cause: Time and effort between the SOR and SABG programs was not tracked during the audit period to accurately allocate time between the programs.
Effect: Payroll costs were not charged to the program based on time and effort.
Repeat finding: Not a repeat finding.
Recommendation: We recommend time spent on the SABG program be coded to a unique project code in order to ensure time and effort is properly identified and tracked for the program.
Views of responsible officials: There is no disagreement with the audit finding