Finding Text
Item:
2023-002
Assistance Listing Number:
93.914
Program:
HIV Emergency Relief Project Grants
Federal Agency:
U.S. Department of Health and Human Services
Pass-Through Agencies:
Maricopa County
Pass-Through Grantor Identifying Number:
A22MHSSWC, A23MHSSWC, A22MNSSWC, A23MNSSW, A22MCMSWC, A23MCMSWC, A22NMCMSWC, A23NMCMSWC, A22FBMSWC, A23FBMSWC
Award Year:
March 1, 2022 - February 28, 2023; March 1, 2023 - February 28, 2024
Compliance Requirement:
Allowable Activities and Costs
Criteria:
In accordance with 2 CFR § 200.405 – Allocable Costs - (d) If a cost benefits two or more projects or activities in proportions that can be determined without undue effort or cost, the cost must be allocated to the projects based on the proportional benefit.
Condition:
Costs charged to the federal program were based on an allocation methodology that was not properly updated for the current period.
Questioned Costs:
n/a
Context:
In a population of over 250 non-payroll costs charged to the program, we conducted a non-statistical sample of 40 non-payroll costs charged to the program. In our sample of 40, we noted that 1 selection was charged to the program based on an allocation methodology that was not properly updated for the current period. The variances between the amount charged and the amount supported, as well as the projected impact to the entire population, was trivial in nature. However, this is deemed to be a material weakness in internal control over compliance.
Effect:
The system of internal controls was not properly implemented.
Cause:
Turnover within key positions of the organization resulted in insufficient documentation and/or inadequate implementation of the control procedures.
Identification as a Repeat Finding:
Not a repeat finding
Recommendation:
The Organization should enhance its processes and controls to ensure that cost allocation methodologies utilized to bill federal awards are properly updated each reporting period as deemed necessary to accurately reflect the proportional benefit.
Views of Responsible Officials:
Management of the Organization concurs with the finding. See Corrective Action Plan.