Finding Text
2 CFR § 200.405 (a) states, in part, that a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received. 2 CFR § 300.1 gives regulatory effect to the Department of Health and Human Services for 2 CFR § 200.405 (a) which states, in part, that a cost is allocable to a particular Federal award or other cost objective if the goods or services involved are chargeable or assignable to that Federal award or cost objective in accordance with relative benefits received. Ohio Admin. Code § 5101:9-1-04(C)(3) defines “Social service (SS) administrative costs” as costs that benefit one or more SS programs. The SS cost pool consists of costs relating to the administration of various SS programs. The Belmont County Job and Family Services did not have the proper internal controls in place to prevent unallowable activities and costs. During our testing of indirect payroll and non-payroll expenditures, we noted that the Belmont County Family and Children First Council Coordinator’s salary and benefits was improperly charged to the social services cost pool along with travel and meal reimbursements. This error resulted in a questioned cost of $75,456 against the Temporary Assistance for Needy Families (TANF) Grant. Failure to charge these costs to the appropriate cost pool resulted in the allocation of costs to a non-benefiting program, which subsequently resulted in the improper Federal reimbursement to this non-benefitting program. The Belmont County Job and Family Services should implement procedures to evaluate expenditures to determine which programs they benefit in order to charge the associated costs to the appropriate indirect cost pool or direct program. We further recommend the Belmont County Job and Family Services complete the necessary adjustment in CFIS Web to adjust the aforementioned costs, and any similar ones, to the benefitting program.