Finding 30645 (2022-002)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-03-26

AI Summary

  • Core Issue: The cost allocation plan for the Medical Assistance Program was not reviewed or updated as required.
  • Impacted Requirements: Compliance with 2 CFR, Part 200 regarding allowable costs and proper documentation of cost allocation methodologies.
  • Recommended Follow-Up: Management should regularly compare budgeted and actual revenues to adjust cost allocation percentages and ensure all changes are documented.

Finding Text

Finding 2022-002: Cost Allocation Plan Information on the Federal Program: Assistance Listing Number 93.778. Medical Assistance Program. Award Number: FP076-07. Compliance Requirement: Allowable Costs Criteria: Costs should be allocated in the accounting system among grants according to 2 CFR, Part 200. Condition: During the current year, the allocation plan was not reviewed and adjusted to actual per CFR 200. Cause: Management?s cost allocation plan should be documented as to the methodology supporting the plan, including how percentages for each funding stream are determined and the plan should be documented when circumstances arise that require the plan to be changed. Effect: Expenses could be improperly reimbursed by the grant program and the grantor could require repayment.Recommendation: Management should compare budgeted revenues to actual revenues throughout the fiscal year to determine if the cost allocation percentages require updating and document and retain the plan changes.

Corrective Action Plan

Financial Statement Finding and Federal Award Findings and Questioned Costs: Finding 2022- 002: Cost Allocation Plan Criteria: Costs should be allocated in the accounting system among grants according to 2 CFR, Part 200. Condition: During the current year, the allocation plan was based on budgeted revenues which is unallowable per CFR 200. Cause: Management?s plan is based on a cost driver that is unallowable per CFR 200. Effect: Expenses could be improperly reimbursed by the grant program and the grantor could require repayment. Recommendation: Management should compare budgeted revenues to actual revenues throughout the fiscal year to determine if the cost allocation percentages require updating. Corrective Action: The Coalition?s cost allocation process has been driven primarily at the direction of its state funder. Moving forward, management plans to consult with the auditing firm for assistance in the development and tracking of a cost allocation plan which complies with CFR 200 prior to submission of the upcoming fiscal year budget/cost allocation plan.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 607087 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.778 Medical Assistance Program $758,383
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $233,971
93.994 Maternal and Child Health Services Block Grant to the States $79,615