Finding Text
Finding 2023-04 - Allowable Costs Requirement Significant Deficiency in Internal Controls over Compliance and Compliance Identification of the federal program(s): Assistance Listings program titles and numbers: 93.591 Family Violence Prevention and Services Act 14.228 Community Block Development Grant (CBDG-CV) Federal award identification number: 93.591: Ohio Domestic Violence Network (2021-CM-004-479CM), Ohio Office of Criminal Justice Services (2021-SA-RCC-459SA, 2021-AR-003-459AR, 2021-CM-003-459CM, 2023-VP-003-4194) 14.228: Ohio Department of Development (B-D-22-1AE-4) Name of the federal agencies: 93.591 Department of Health and Human Services 14.228 Department of Housing and Urban Development Name of the applicable pass-through entities: 93.591: Ohio Domestic Violence Network, Office of Criminal Justice Services 14.228: Ohio Department of Development Criteria or specific requirement (including statutory, regulatory, or other citation): The 2 CFR section 200.303 of the Uniform Guidance requires that non-federal entities receiving federal awards establish and maintain 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. Condition: During the audit, it was noted that payroll charges to federal awards did not align with the actual timesheet allocations. This discrepancy led to inaccurate payroll expenses being reported for the respective programs. Cause: Because of mishandling by previous personnel, the supporting documentation and basis for the payroll amounts charged to the program are not properly documented. Effect or potential effect: Without adequate internal controls to ensure that all charges to the federal program are properly reviewed for allowability, SAOP could be noncompliant with the allowability requirement and might request funds for unallowed costs. Questioned costs: $4,408 Context: Payroll charges not in line with the actual hours worked in the timesheet. Identification as a repeat finding, if applicable: Not applicable Recommendation: We recommend that SAOP enhance their internal controls over the payroll allocation process by conducting regular reviews and reconciliations to ensure the accuracy of payroll allocations. Views of responsible officials: Management agrees with the finding and recommendation.