Finding Text
Federal Agency: Department of Health and Human Services
Federal Program Name: Aging Cluster
Assistance Listing Number: 93.044, 93.045, 93.053
Pass-Through Agency: State of Connecticut Department of Aging and Disability Services
Award Period: 10/1/2022 9/30/2025 Type of Finding:
• Material Weakness in Internal Control over Compliance
Criteria or Specific Requirement: The Organization follows the Connecticut Cost Allocation Standards and is required to maintain a cost allocation plan that is approved by the governing board. The actual costs must be charged in accordance with this plan.
Condition: The Organization has an approved Cost Allocation Plan, however nonpayroll expenses were not allocated following the approved plan.
Questioned costs: None
Context: Of the 25 non payroll disbursements chosen for testing, five of the transactions were allocated in a method that differed from the cost allocation plan or the allocation method used could not be reperformed.
Cause: Management was not aware of the allocation compliance.
Effect: The effect is that expenses charged to the federal awards potentially could be in excess of actual allocated expense incurred.
Repeat Finding: No
Recommendation: We recommend that the Cost Allocation Plan be modified by management to the appropriate cost allocations for the Organization and obtain approval for the updated plan by the governing board.
Views of Responsible Officials: There is no disagreement with the audit finding.