Finding Text
Opioid STR ALN No. 93.788 U.S. Department of Health and Human Services Criteria or Specific Requirement – Activities Allowed and Unallowed and Cost Principles – 2 CFR Part 200, Subpart E Condition – A sample of 80 expenditures were selected from ALN No. 93.788, which included the following populations: • Payroll expenditures - a total of 487 total items totaling $1,589,426. • Direct expenditures – a total of 284 total items totaling $310,843 The samples were not, and are not intended to be, statistically valid. Of the expenditures tested the following items were determined to lack appropriate supporting documentation to support being charged to the grant program: • Payroll expenditures - 40 items totaling $10,310 • Direct expenditures – 38 items totaling $872 The Organization did not have adequate supporting documentation demonstrating actual time and effort reporting. Cause – The Organization charged budgeted percentages to the grant programs without a system in place to monitor and track that actual time and effort was consistent with budgeted percentages. Effect or potential effect – Costs charged to the grant programs could have varied from actual time and effort. Questioned costs – $8,561. These questioned costs were determined by an allocation charged to both direct expenditures and payroll expenses greater than actual time consistent with usage related to the grant. Context – The Organization did not have a reasonable methodology of allocating costs to these grant programs. Identification as a repeat finding, if applicable – Repeat finding (see 2024-002 and 2023-003). Recommendation – Management should implement policies and procedures that strengthen internal control over compliance in relation to activities allowed and cost principles. The policy and procedure should be designed to ensure that a reasonable allocation methodology is implemented and followed or that time and effort is certified by the employee on a regular basis.