Finding Text
Finding 2022-004 Federal Programs: Assistance Listing Number: 93.470, Alzheimer?s Disease Program Initiative Criteria: Section 200.403(g) of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, requires that costs be adequately documented. In addition, Section 200.302 requires that the financial management system of each non-Federal entity must provide for an identification, in its accounts, of all Federal awards received and expended and the Federal programs under which they were received; an accurate, current, and complete disclosure of the financial results of each Federal award or program; and a comparison of expenditures with budget amounts for each Federal award. Condition: During our testing of internal controls associated with the Alzheimer?s Program, and the Association was not able to provide evidence for the time allocation associated with an employee whose salary was allocated to the program. In addition, for the Alzheimer?s Program, management provided an excel spreadsheet to support the charges that were made to the program rather than reporting from their financial management system that is compliant with Section 200.302. We acknowledge that the Association did track Alzheimer?s program expenditures within a cost center, however, not all of the charges made to the program were properly captured within the cost center. Cause: Policies and procedures were not implemented to ensure that supporting documentation was maintained to evidence that costs were allowable. In addition, policies and procedures were not implemented to ensure that charges made to federal programs were properly captured in the financial management system as required. Effect: An ineffective internal control system related to support and approval of costs to ensure allowability can lead to noncompliance with laws and regulations and possible loss of funding. In addition, an ineffective financial management system, could lead to noncompliance with laws and regulations and possible loss of funding. Specifically, it could lead to an incorrect identification of costs charged to a federal program and an inability to substantiate that double-charging did not occur. Questioned Cost: Could not be determined. Context: A total of 40 payroll and 40 non payroll transactions, associated with the Association?s major programs, were selected from a sample of charges made to each respective program. Of this sample, 20 payroll and 20 non payroll transactions associated with the Alzheimer?s Program were selected for testing. During our testing of internal controls, in 20 out of 20 payroll transactions associated with the Alzheimer?s Program, the Association was not able to provide evidence for the time allocation associated with one employee whose salary was allocated to the program. In addition, approximately $46,000 in program charges were not properly reflected within the appropriate cost center. Recommendations: We recommend that policies and procedures be implemented to ensure compliance with sections 200.403(g) and 200.302 of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, in order to ensure compliance with laws and regulations associated with Uniform Guidance. View of Responsible Officials: Management concurs with this recommendation. See page 45 for Corrective Action Plan.