Finding Text
Federal Agency: Department of Health and Human Services Federal Program Name: Block Grants for Prevention and Treatment of Substance Abuse Federal Assistance Listing Number: 93.959 Pass-Through Agency: State of Connecticut Department of Mental Health and Addiction Services Award Period: 3/1/2023-8/31/2025 Type of Finding: Allowable Costs/Cost Principles – Cutoff Criteria or Specific Requirement: The Office of Management and Budget (OMB) Cost Principles and Uniform Guidance require expenditures charged to federal awards to be recorded in accordance with applicable cost standards and the entity’s cost allocation policies, including proper expenditure cutoff and reporting within the applicable grant period. Condition: Of the twenty-five expenditures tested, one exception was identified related to improper cutoff timing for reporting the expenditure. Questioned Costs: Immaterial Context: The exception related to employee reimbursement expenditures incurred during the prior fiscal year but submitted after the June 30, 2024 fiscal year-end. While the expenditures represented allowable costs, the related service period fell outside the applicable grant period. As a result, the expenditures were recorded in the fiscal year ended June 30, 2025 rather than the appropriate reporting period. Cause: Employee reimbursement requests were not submitted timely, resulting in the expenditures being recorded in the fiscal year in which payment was made rather than the fiscal year in which the related costs were incurred. Recommendation: Management should continue to strengthen year-end and subsequent review procedures over invoices and employee reimbursements to ensure expenditures are recorded in the appropriate reporting period and within the applicable grant period. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding.