Finding Text
Section III: Federal Awards Findings and Questioned Costs Federal Agency: U.S. Department of Health and Human Services Pass-through Agency: State of Connecticut, Department of Mental Health and Addiction Services (COVID-19) Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs State of Oklahoma, Department of Mental health and Substance Abuse Services Program Name (Assistance listing #): Block Grants for Prevention and Treatment of Substance Abuse (93.959) Finding 2022-001: Allowable Costs/Cost Principles - Time and Effort Reporting (Material Weakness) Criteria: The distribution of the salaries and wages to awards must be supported by personnel activity reports or timesheets. Personnel activity reports or timesheets reflecting the distribution of activity of each employee must be maintained for all staff members whose compensation is charged, in whole or in part, to government funded contracts. The reports must reflect an after-the-fact determination of the actual activity of each employee. Each report must account for total activity for which employees are compensated and which is required in fulfillment of their obligations. The report must be signed by the individual employee, or by a responsible supervisory official having knowledge of the activities performed by the employee, that the distribution of activity represents a reasonable estimate of the actual work performed by the employee during the periods covered by the reports. The reports must be prepared at least monthly and must coincide with one or more pay periods. Statement of Condition: For all selected samples, there were no personnel activity reports or timesheets to evidence the allocation of time to government contracts. Cause: Procedures and internal controls associated with actual time and effort charged to government contracts were not in place. Effect: Management did not have sufficient documentation for the allocation of time to government contracts. Questioned Costs: $146,290 Identification of Repeat Finding: NoRecommendation: We recommend that management implement policies, controls and procedures to ensure that all time and effort allocations to federal programs are appropriately documented to comply with applicable cost principles. Views of Responsible Officials: Management is in agreement with the finding. Management has implemented additional policies, procedures and controls to document the allocation of time and effort.