Finding Text
INADEQUATE COST ALLOCATION PLAN Finding Type: Significant Deficiency in Internal Controls over Financial Reporting; Significant Deficiency in Internal Controls over Compliance ALN/CSFA and Program Title: 93.558 – Temporary Assistance for Needy Families, 93.658 – Foster Care - Title IV-E, 93.676- Unaccompanied Alien Children Program, 60.074 – Out-of-Home Supports Federal/State Agency: U.S. Department of Health and Human Services, Florida Department of Children and Families Pass-Through Entity: Big Bend Community Based Care, Inc. dba NWF Health Network; Brevard Family Partnership; Children’s Network of Hillsborough; Children’s Network of Southwest Florida Social Services; Communities Connected for Kids; Community Partnership for Children; Embrace Families, Inc.; Family Support Services of North Florida, Inc.; Family Support Services of Suncoast; Heartland for Children; Kids Central, Inc.; Partnership for Strong Families; Safe Children Coalition, Inc., Liberty Wilderness Crossroads Camp Contract Number: 0299-22, C0900, PCM783, PCM788, 90ZU0501 Criteria: Under 2 CFR 200.405(d), “If a cost benefits two or more projects or activities in proportions that can be determined without undue effort or cost, the cost must be allocated to the projects based on the proportional benefit. However, when those proportions cannot be determined because of the interrelationship of the work involved, then… the costs may be allocated or transferred to benefitted projects on any reasonable documented basis.” Per the Organization’s policies and procedures, certain costs that benefit all programs should be allocated using allocation percentages that are calculated semi-annually. Condition: Certain expenses are allocated between programs that operate in the same location. The allocation is based on estimated costs/benefits to the programs, but the allocations and methodologies are not documented. Cause: Management did not realize a fully documented cost allocation plan was required. Effect: The Organization’s policies and procedures do not align with Uniform Guidance. Recommendation: We recommend management document all cost allocations and methodologies, and any periodic changes, in the cost allocation plan. Views of Responsible Officials and Planned Corrective Actions: See management’s response and Corrective Action Plan on page 55.