Finding Text
Finding 2022?002 Federal agency: U.S. Department of Health and Human Services Federal program: SOR Recovery Support Services; Substance Abuse Prevention and Treatment Block Grant (SABG) Assistance Listing Numbers: 93.788 and 93.959 Pass-Through Agencies: Washington State Health Care Authority; Beacon Health Options, Inc. Pass-Through Number(s): K4849, K3216 and 1009592.8 Award Period: September 30, 2021 ? September 29, 2022; July 1, 2021 ? June 30, 2022. Type of Finding: Significant Deficiency in Internal Control Over Period of Performance Criteria: Under ?200.309, a non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance applicable to the grant. Condition: During audit procedures performed, we noted three payroll transactions tested included pay dates prior to the beginning period of performance, and the payroll costs were charged to the grant. Questioned Costs: $6,814 Context: During audit procedures performed, we tested one payroll transaction for beginning period of performance testing related to ALN 93.788 and noted the pay period for this transaction began prior to the period of performance beginning date for the grant, and the payroll costs incurred prior to the beginning period of performance date were charged to the grant. Of the 9 payroll transactions tested for ALN 93.959 we noted 2 payroll transactions for which the pay period began prior to the period of performance beginning date for the grant, and the payroll costs incurred prior to the beginning period of performance date were charged to the grant. Cause: The Organization?s internal controls lacked proper procedures to ensure expenditures were not being charged to the grant if it was not incurred within the period of performance. Effect: The Organization charged expenditures to the grants and was reimbursed for these costs that included payroll costs incurred outside of the contract period of performance. Recommendation: We recommend that the Organization develop a procedure to ensure that payroll transactions are properly allocated based on the dates incurred within the period of performance. Views of responsible officials: There is no disagreement with the audit finding.