FAC Explorer

Finding 1153508 (2024-001)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2024
Accepted
2025-09-19
Audit: 366751
Organization: South Shore Child Guidance Association, Inc. (NY)
Auditor: Baker Tilly US LLP

AI Summary

  • Core Issue: South Shore made a clerical error in payroll calculations, leading to unallowable costs being charged to federal funds.
  • Impacted Requirements: This finding violates 2 CFR Part 200.303(a) and 2 CFR section 200.405 regarding internal controls and allowable costs.
  • Recommended Follow-Up: Improve internal controls for preparing and reviewing monthly reimbursement claims to prevent future errors.

Finding Text

Finding 2024-001 - Activities Allowed or Unallowed & Allowable Costs/Cost Principles (Internal Control over Compliance/Compliance) ALN No.: 93.696 - Certified Community Behavioral Health Clinic Expansion Grants Award Year: January 1, 2024 – December 31, 2024 Federal Agency: United States Department of Health and Human Services Pass Through Entity: Not applicable Criteria: 2 CFR Part 200.303(a) of the Uniform Guidance requires all non-Federal entities to establish and maintain effective internal control over the Federal awards that provides reasonable assurance that the non-Federal entity is managing the Federal awards in compliance with Federal statutes, regulations, and the terms and conditions of the Federal awards. In addition, 2 CFR section 200.405 requires federal awards be expended only for allowable activities. Condition/Context: South Shore made a clerical error in calculating allocated payroll amount claimed for one selection tested out of 60 selections leading to an error of $108. The sampling method was nonstatistical sampling. Cause: There was no proper review and oversight over the individual preparing the monthly claims for reimbursement. Effect: South Shore has not complied with the specific requirements for activities allowed or unallowed and allowable costs/cost principles as described in the Uniform Guidance. Unallowable costs were charged to the federal program. Questioned Costs: None. Recommendation: South Shore should enhance its internal control processes related to preparation and review of the monthly claim for reimbursement.

Corrective Action Plan

We have adjusted our policies and procedures to assure that every claim submission is reviewed by both the Controller and CFO prior to submission. Claim forms and appropriate documentation will be submitted to the Controller who will give initial review. Review will consider timeliness of items claimed as well as appropriateness for the particular federal grant. CFO will then provide final authorization in writing to both grant accountant and controller at which time claim for reimbursement can be submitted by grant accountant.

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
93.696 Certified Community Behavioral Health Clinic Expansion Grants $1.20M
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $819,956
93.788 Opioid Str $99,263