Finding 1201500 (2025-001)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2025
Accepted
2026-03-30

AI Summary

  • Core Issue: Lack of retained documentation for employee time-card reviews and allocation between federal programs.
  • Impacted Requirements: Controls over payroll expenditures and documentation retention were insufficient.
  • Recommended Follow-Up: Management should enhance policies to ensure thorough reviews and proper documentation of payroll allocations.

Finding Text

Criteria: The Organization should have controls in place over payroll related expenditures to ensure appropriate allocation between federal award programs and the relevant approval should be retained. Condition: Documented review of employee time-cards was not retained for an employee selected for testing. Additionally, the documentation of review of the allocation between federal award programs was not retained by the Organization for the remaining employees selected for testing. Cause: The controls in place were not sufficiently documented to support their occurrence. Effect: Employee time was allocated to the corresponding major program without retaining sufficient documentation of review. Questioned Costs: There were no questioned costs identified. Context: A sample of 40 employee time-cards was tested. 1 time-card did not have documentation of review retained. The remaining 39 time-cards did not have documented review of the allocation between federal award programs. Recommendation: We recommend that management review the existing policies and procedures in place over personnel time and allocation and ensure that sufficient reviews are occurring and the corresponding documentation of the reviews are obtained. Management's response: Management agrees with the finding.

Corrective Action Plan

Finding 2025-001 Criteria: The Organization should have controls in place over payroll related expenditures to ensure appropriate allocation between federal award programs and the relevant approval should be retained. Condition: Documented review of employee time-cards was not retained for an employee selected for testing. Additionally, the documentation of review of the allocation between federal award programs was not retained by the Organization for the remaining employees selected for testing. Cause: The controls in place were not sufficiently documented to support their occurrence. Effect: Employee time was allocated to the corresponding major program without retaining sufficient documentation of review. Questioned Costs: There were no questioned costs identified. Context: A sample of 40 employee time-cards was tested. One time-card did not have documentation of review retained. The remaining 39 time-cards did not have documented review of the allocation between federal award programs. Recommendation: We recommend that management review the existing policies and procedures in place over personnel time and allocation and ensure that sufficient reviews are occurring and the corresponding documentation of the reviews are obtained. Anticipated completion date – Resolved in 2026 Corrective Action: Management agrees with the finding. NCBHS implemented policies and procedures to ensure accurate, timely, and compliant reporting of personnel effort charged to State of Illinois grants (including IDHS) and all Federal awards. The policy ensures the agency meets the requirements under 2 CFR 200.430(i) for Federal awards and applicable State grant accountability standards.

Categories

Allowable Costs / Cost Principles

Programs in Audit

ALN Program Name Expenditures
93.696 CERTIFIED COMMUNITY BEHAVIORAL HEALTH CLINIC EXPANSION GRANTS $938,990
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $177,179
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $175,000