Finding 1228223 (2025-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-08-28

AI Summary

  • Core Issue: The Organization failed to monitor the requirement for the Project Director to dedicate 50% of their time to the project, leading to non-compliance.
  • Impacted Requirements: Time-and-effort records did not accurately reflect the Project Director's contributions, violating federal award terms.
  • Recommended Follow-Up: Review and adjust the Project Director's time allocation and costs to ensure compliance and consider any necessary corrective actions.

Finding Text

During our testing of compliance with the terms and conditions of the federal award, we noted that the Organization did not identify or monitor the requirement that the Project Director devote 50% level of effort to the project. The Project Director performed activities related to the federal program; however, the associated time was reported through administrative activities rather than recorded directly to the award. As a result, the Organization's time-and-effort and accounting records did not demonstrate compliance with the 50% level-of-effort requirement during the applicable period. The Organization identified the requirement in January 2026 and began reviewing the Project Director's activities and related personnel costs to determine the appropriate allocation and whether additional corrective action is necessary.

Corrective Action Plan

Upon identifying the requirement in January 2026, the Organization initiated a review of the Project Director's activities and related personnel costs. The Organization will implement procedures to identify and document key personnel and level-of-effort requirements for federal awards, communicate such requirements to appropriate personnel, and periodically monitor actual effort against award requirements.

Categories

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Programs in Audit

ALN Program Name Expenditures
93.493 CONGRESSIONAL DIRECTIVES $1.02M
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $661,343
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $185,666
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $153,396