Finding Text
Allowable Costs/Cost Principles ALN Number and Name: 93.243 Substance Abuse and Mental Health Services-Projects of Reginal and Nation Significance Award Number and Year: 1H79SM088601-001, 09/30/2023-09/29/2024 Federal Agency: U.S. Department of Health and Human Services Condition: During our test of disbursements for allowable costs/cost principles, we discovered that the subrecipient transactions tested did not contain sufficient supporting documentation for the disbursements to the subrecipients. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) Subpart E-Cost Principles Section 200.403 states that costs must be adequately documented in order to be allowable under federal awards. Cause: Management maintains the supporting documentation was originally submitted supporting the disbursements to the subrecipients, however, the vendor invoices and payroll reports with evidence of actual time spent on the grant could not be located upon request. Instances were noted where salary expense charged by the subrecipient was based on a percentage of the grant budgets as opposed to being based on actual payroll records. Effect: A total of $24,652 of subrecipient expenditures lacked sufficient supporting documentation. Recommendation: Strengthen policies and procedures to ensure all documents submitted supporting disbursements to subrecipients, including vendor invoices and payroll reports with evidence of actual time spent on the grant, are properly retained in order to support the allowability of the expenditures. Questioned Costs: $24,652 Views of responsible Officials and planned Corrective Action: The Organization agrees with the finding and will strengthen its policies and procedures to ensure all documents submitted supporting disbursements to subrecipients, including vendor invoices and payroll reports with evidence of actual time spent on the grant, are properly retained in order to support the allowability of the expenditures.