Finding 32833 (2022-003)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-03-05
Audit: 30125
Organization: Chipola Healthy Start, Inc. (FL)

AI Summary

  • Core Issue: Eleven out of fifty-one sampled disbursements did not match the documented cost allocation plan for the Medical Assistance Program.
  • Impacted Requirements: Compliance with 2 CFR, Part 200 regarding allowable costs and proper documentation of allocation rates.
  • Recommended Follow-Up: Implement procedures to ensure cost allocations align with documented plans to prevent improper reimbursements.

Finding Text

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: In our testing of the cost allocation plan, we sampled fifty-one disbursements charged to the Medical Assistance Program noting eleven disbursements that did not agree to the documented cost allocation plan. Cause: Management did not keep adequate documentation of the allocation rates used throughout the year when changes to percentages were made. Effect: Expenses could be improperly reimbursed by the grant program and the grantor could require repayment. Recommendation: We recommend that the Organization implement procedures to ensure the cost allocation agrees to the documentation used as basis for the plan.

Corrective Action Plan

Chipola Healthy Start is aware if this weakness. The issue is FDOH has implemented an order to all coalitions that the budget reconcile to zero. We have had emails, and discussion with FDOH about this. Moving forward, Chipola Healthy Start will follow the Government Auditing Standards to show the true reflection of each funding category within the Chipola Healthy Start budget. This will also be a topic of discussion for leadership moving forward.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 609275 2022-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.778 Medical Assistance Program $683,247
93.994 Maternal and Child Health Services Block Grant to the States $121,586