Finding Text
Finding Number 2024-003: Contract Requirements - Earmarking (Significant Deficiency in Internal Control over compliance and Instance of Noncompliance – Matching, Level of Effort, and Earmarking)
FALN Number 93.959; Federal Agency/Pass-through Entity – Program Name Block Grants for Prevention and Treatment of Substance Abuse; Award Number 900077; Award Year 2023-2024
Criteria: 2024 Compliance Supplement and 2 CFR 200.303(a) stated that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and terms and conditions of the federal award.
Condition/Context: As a result of our audit procedures, we noted management did not have evidence retained to support its compliance with the program’s earmarking requirements related to Process Objectives, Quality Objectives and Impact Objectives.
Repeat Finding from Prior Year(s): Yes, Finding Number 2023-004
Cause and Effect: The Health System did not have proper controls in place to ensure the fulfillment of the earmarking requirements are properly documented, which led to non-compliance with program requirements.
Questioned Cost: None
Recommendation: We recommend management implement policies and procedures to clearly identify the earmarking requirements of the program and retain proper documentations to support how the requirements are fulfilled.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. The Health System has drafted the policy titled, Alameda Health System Reports Policies – SUD Program, to ensure earmarking requirements of the program and proper documentation is retained to evidence fulfilled requirements. The policy will be finalized in fiscal year 2025.