Finding Text
2023-001: Allocable Costs/Cost Principles - Reporting of Payroll based on budget.
Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 93.696, Certified Community Behavioral Health Clinic Expansion Grant
Federal Award Identification Number and Year: 1H79SM086680-01, Program Grant Period 09/29/2022-09/29/2023
Pass-through Entity: N/A
Type: Material weakness in internal controls and material noncompliance with laws and regulations
Repeat Finding: No
Criteria: Per 2 CFR 200.430(i)(1)(viii)(c), the auditee’s system of internal must include control processes to review after-the-fact interim charges made to a Federal award based on budget estimates. All necessary adjustment must be made such that the final amount charged to the Federal award is accurate, allowable, and properly allocated.
Condition: The Authority allocated wages and fringe benefits to the program based on the grant budget, with no adjustment made to actual time spent.
Identification of How Likely Questioned Costs Were Computed: A schedule was prepared of time and attendance reports for the year which was compared to the amount charged to the grant.
Known Questioned Costs: $19,693
Context: The Authority charged wage and fringe benefit for all employees providing services under the Certified Community Behavioral Health Clinic Expansion Grant based on budget amounts for the fiscal year. A schedule was prepared by management of the time spent on the grant for all employees for the year, which was compared to budget.
Cause/Effect: Management was under the understanding that since the budget had been approved by the grantor that they were allowed to charge the budgeted amount to the grant. As a result, wages and fringe benefits charged to the grant were overstated based on time and attendance reports.
Recommendation: We recommend the Authority review all federally funded grants and implement a review process to ensure the amount charged to the Federal award is based on the time the employees spend on providing the services.
View of Responsible Officials and Planned Corrective Action Plan: See attached corrective action plan.