Finding Text
Federal agency: U.S. Department of Health and Human Services Federal program title: Family Violence Prevention and Services/Domestic Violence Shelter and Supportive Services Assistance Listing Number: 93.671 Pass-Through Agency: State of Missouri Department of Social Services Pass-Through Number(s): PG941900027 Award Period: 7/1/2024-6/30/2025; 7/1/2025-6/30/2026 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Under 2 CFR §200.306, all cost‑sharing or matching contributions must be verifiable from the non‑Federal entity’s records, necessary and reasonable for achieving program objectives, allowable under Subpart E—Cost Principles and not financed by the Federal Government under another award unless specifically permitted by statute. Matching contributions must not be used for any other Federal award, must be included in the approved budget when required by the awarding agency, and must be properly valued and supported with adequate documentation consistent with the valuation requirements prescribed in §200.306. These provisions ensure that matching contributions are managed in full compliance with applicable Federal statutes, regulations, and award terms. Condition: Payroll costs were improperly allocated, resulting in an overstatement of allowable payroll expenses reported as matching contributions. Questioned costs: $57.91 Context: For 1 of the 20 expenses tested there was an overstatement of the payroll cost allocation. Cause: The misallocation resulted from management oversight during the review of payroll cost allocations. Effect: Without proper review and approval of payroll cost allocations, inaccurate costs may be charged to Federal awards, potentially leading to noncompliance with matching requirements and misstated program financial activity. Repeat Finding: N/A Recommendation: We recommend the Organization enhance its internal controls over the review of the payroll allocation to ensure matching contributions are accurately calculated and supported. Views of responsible officials: The Senior Accountant or Director of Grants and Compliance will conduct the initial review to ensure that match costs are allowable, properly supported, and accurately calculated. The Chief Financial Officer will perform a secondary review and approval to validate completion of the initial review and confirm that reported match amounts reconcile to supporting documentation. Evidence of review will be documented through dated signatures or electronic approval within the grant billing file.