Finding 1106555 (2024-002)

Information on the Federal Program: Federal Agency: U.S. Department of Health and Human Services Program Name: Maternal, Infant and Early Childhood Home Visiting Grant AL: 93.870 Federal Award Year: Year Ended June 30, 2024 Specific Requirement: The cost principles in 2 CFR, Part 200, Subpart E (Cost Principles) are required for the administration of federal awards of Nonprofit organizations. Condition Found: During our audit, we noted identified two issues of costs charged to the grant: -The Association had submitted for and received of an indirect cost expenditure which had been calculated in error. Management had posted a journal entry to the grant for $84 of office supplies expense, however, there was no expense for that amount and the journal entry should have been less than one dollar. -The Association used grant dollars to pay for car seats for program participants. The costs are allowable under the grant, however, the client did not have a process in place to document the participants receiving the items purchased under the federal program. Context: We sampled 8 expense transactions and noted 2 transactions that were not consist with the Cost Principles. Questioned Costs: $322 Cause and Effect: The Association did not have adequate controls in place to ensure costs charged to the award were supported by accurate and sufficient documentation. Identification as a Repeat Finding, if Applicable: Yes, 2023-002 Recommendation: We recommend the Association improve the review performed over monthly allocation journal entries to timely verify the proper amounts are being allocated to federal grants. Additionally, we recommend the client implement a formal process to document purchases made on behalf of participants and the delivery of the goods to the participants. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding and the recommendation. See Corrective Action Plan.