Finding Text
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Child Care Development Block Grant Assistance Listing Number: 93.575 Pass-Through Agency: State of Colorado, Department of Health and Human Services Pass-Through Numbers: N/A Award Period: March 1, 2022 – September 30, 2023 Type of Finding: • Material Weakness in Internal Control over Compliance • Other Matter Criteria or Specific Requirement: In accordance with 2 CFR 200.77 and 2 CFR 200.309, a non-federal entity may charge to a federal award only allowable costs incurred during the period of performance. Condition: During testing of a sample of 40 disbursements, we identified three instances of costs totaling a net amount of $182 that were charged to the federal award and management was not able to provide documentation to support the charges and that they were incurred during the period of performance. Questioned Costs: No questioned costs over $25,000. Context: These three instances were noting during testing of 40 disbursements. Cause: The control to ensure costs are supported and coded to federal awards within the period of performance – supervisor review – did not detect instances of time coded and charged to the project outside of the period of performance. Effect: The inefficacy of the control to ensure costs are supported and coded to federal awards within the period of performance – supervisor review – could result in charges to projects outside of their related period of performance. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that management reinforce the importance of its control to ensure costs are charged to federal awards within the period of performance with employees through on-going training. Views of Responsible Officials: There is no disagreement with the audit finding.