Finding 24767 (2022-001)

Significant Deficiency Repeat Finding
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2022-10-11
Audit: 21470
Auditor: McDonald Jacobs

AI Summary

  • Core Issue: Inconsistent documentation of allocation rates for grant invoices, with five out of forty expenses using incorrect rates.
  • Impacted Requirements: Lack of documented support and management review for system allocations prior to accounting postings.
  • Recommended Follow-Up: Ensure regular reviews of system allocations by management and align invoice allocations with approved rates.

Finding Text

Type: Federal Awards, Significant Deficiency CFDA 93.600 Agency: Department of Health and Human Services Criteria: There should be documented support and review of system allocations by an appropriate member of management other than the preparer prior to posting in the accounting system. Condition: There was inconsistent documentation of allocation rates for invoices charged to the grant. Allocations other than the rates determined by management were used on five out of forty nonpayroll expenses. There were fewer exceptions noted this year than in the prior year. Cause: The Organization?s control policies for review of allocation rates used were not consistently followed. Effect: Invoice allocations may be charged inaccurately to awards and incorrect amounts could be billed. Questioned Costs: None. Recommendation: System allocations should be reviewed regularly by an appropriate member of management and invoice allocations should be consistent with the approved allocations.

Corrective Action Plan

Finding 2022-001: Review of expense allocations CFDA. 93.600 Agency. Department of Health and Human Services Significant Deficiency: There was inconsistent documentation of allocation rates for invoices charged to the grant. Allocations other than the rates determined by management were used on five out of forty nonpayroll expenses. Recommendation: System allocations should be reviewed regularly by an appropriate member of management and invoice allocations should be consistent with the approved allocations. Corrective Action: Clackamas County Children?s Commission (CCCC) agrees with the auditors? findings, and the following action will be taken to improve the situation. Allocations, and the supporting documentation for how those were derived will be periodically printed to PDF format for historical recording of changes, and the dates any changes were made. We will review the allocation codes of the accounting system monthly and deactivate those that we are not going to use in order to avoid errors in the allocation of expenses. Additionally, we will continue to review the transactions prior to posting in the accounting system to correct any errors. Anticipated Completion Date: September 2022

Categories

Allowable Costs / Cost Principles Significant Deficiency

Other Findings in this Audit

  • 24768 2022-001
    Significant Deficiency Repeat
  • 24769 2022-002
    -
  • 24770 2022-002
    -
  • 601209 2022-001
    Significant Deficiency Repeat
  • 601210 2022-001
    Significant Deficiency Repeat
  • 601211 2022-002
    -
  • 601212 2022-002
    -

Programs in Audit

ALN Program Name Expenditures
14.231 Emergency Solutions Grant Program $176,760
10.558 Child and Adult Care Food Program $129,759
93.556 Promoting Safe and Stable Families $109,431
93.600 Head Start $89,803