Finding 1162626 (2024-012)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2024

Accepted

2025-11-18

Audit: 372297

Organization: Mental Health Association of Columbia-Greene Counties Inc. (NY)

Auditor: RBT CPA'S LLP

AI Summary

Core Issue: The Organization lacks controls over allowable and unallowable costs, risking non-compliance with grant requirements.
Impacted Requirements: Expenditures must align with 2 CFR sections 200 subpart E; 13 out of 65 tested items lacked proper documentation.
Recommended Follow-Up: Management should enhance controls to ensure all expenses comply with procurement policies and grant allowances.

Finding Text

2024-012 Allowable and Unallowable Costs Assistance Listing No.: 16.575 Crime Victims Assistance and 94.006 AmeriCorps Program Condition: The Organization did not have controls over allowable and unallowable costs requirements. Criteria: The expenditures were necessary and reasonable for performance of the federal award and allowable costs under grants and cooperative agreements are contained in 2 CFR sections 200 subpart E. Questioned Costs There are no questioned costs. Cause: The Organization did not have sufficient controls to ensure that the allowable and unallowable costs requirement was met due to staff turnover. Effect: The Organization could have expenditures that were paid that did not meet its own procurement policy and were unallowable under the grant. Perspective: Thirteen of the sixty-five items selected for testing did not have documentation of the control over compliance with the allowable and unallowable cost requirement. Repeat Finding: This is a repeat finding. See finding 2023-016. Based on timing of prior year audit the Organization did not have time to fully correct the issue. Recommendation: In order to prevent future occurrences of this deficiency, RBT recommends that management expand controls to ensure that they are able to demonstrate that all expenses meet their procurement policy and are allowable under the grant. Auditee's Response: The Organization agrees with the finding. See attached corrective action plan.

Corrective Action Plan

Finding 2024-012 – Allowable and Unallowable Costs (Material Weakness) Finding: The Organization did not have sufficient controls to ensure that the allowable and unallowable costs requirement was met due to staff turnover. Management Response: Management agrees. Corrective action plan: •Develop an allowable cost checklist for all federal programs. •Management will expand controls to ensure that they are able to demonstrate that all expenses meet their procurement policy and are allowable under the grant. •Staff training will be completed by the end of 2025, and a cost allowability checklist is now used for all expenditures charged to grants. Responsible Party: CFO Completion Date/Status: Expected to be Implemented by end of 2025; ongoing review.

Other Findings in this Audit

1162612 2024-009

Material Weakness Repeat
1162613 2024-009

Material Weakness Repeat
1162614 2024-009

Material Weakness Repeat
1162615 2024-009

Material Weakness Repeat
1162616 2024-010

Material Weakness Repeat
1162617 2024-010

Material Weakness Repeat
1162618 2024-010

Material Weakness Repeat
1162619 2024-010

Material Weakness Repeat
1162620 2024-011

Material Weakness Repeat
1162621 2024-011

Material Weakness Repeat
1162622 2024-011

Material Weakness Repeat
1162623 2024-011

Material Weakness Repeat
1162624 2024-012

Material Weakness Repeat
1162625 2024-012

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
94.006	AMERICORPS STATE AND NATIONAL 94.006	$789,681
16.575	CRIME VICTIM ASSISTANCE	$237,463
93.788	OPIOID STR	$128,033
14.267	CONTINUUM OF CARE PROGRAM	$55,324
93.558	TEMPORARY ASSISTANCE FOR NEEDY FAMILIES	$51,475
16.017	SEXUAL ASSAULT SERVICES FORMULA PROGRAM	$15,440
10.558	CHILD AND ADULT CARE FOOD PROGRAM	$4,863
16.588	VIOLENCE AGAINST WOMEN FORMULA GRANTS	$1,413