Finding 34342 (2022-003)

-
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-05-22

AI Summary

  • Core Issue: Payroll expense allocations lacked proper documentation, making it difficult to verify costs.
  • Impacted Requirements: Management must ensure accurate data support for cost allocations as per Uniform Guidance.
  • Recommended Follow-Up: Implement a system to maintain records of allocation percentages for better compliance and support.

Finding Text

Finding 2022-003: Accuracy of Data Federal Agency: U.S. Department of Health and Human Services Award Name: Aging Clusters Program Year: January 1, 2022 ? December 31, 2022 Assistance Listing Number: 93.044/93.045/93.053 Criteria: Management is responsible for reasonably and accurately providing information to support calculations used to allocate costs under the accounting and cost accounting principles contained in the Uniform Guidance. Condition: During compliance testing, it was identified that expense allocations related to payroll were not adequately supported. Context: Payroll cost allocations could not be recalculated or properly traced back to the payroll register. Cause: Lack of formal documentation retention and turnover in positions. Effect: As a result, the Agency was unable to provide documentation to support the payroll costs allocated to the program for reimbursement. Recommendation: In the future, the Agency should maintain records related to allocation percentages to be able to timely and appropriately provide support for calculations. Views of Responsible Officials: Management acknowledges the finding and is improving their documentation and record retention.

Corrective Action Plan

Finding 2022-003: Accuracy of Data Condition During compliance testing, it was identified that expense allocations related to payroll were not adequately supported. Corrective Action Plan Corrective Action Planned: The Agency, effective October 1, 2022, calculates wages to all programs as a percentage. These percentages are used in the development of the budget and shared with the human resources for bi-weekly payroll. Employees paid out of multiple funds are now delineated in a spreadsheet by the Finance Director pursuant to a new standard operating procedure. The Staff Accountant enters the monthly recurring adjustment for wages. If Agency budgets are amended and wages adjusted during the fiscal year, the board in coordination with the Executive Director will notify the Finance Department. The Finance Director will then create a new recurring entry, and any adjustments, for recording for the Staff Accountant. Name of Contact Person Responsible for Corrective Action: Clint Deschene, Director Finance Anticipated Completion Date: March 2023

Categories

Allowable Costs / Cost Principles Cash Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $537,379
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $326,629
93.052 National Family Caregiver Support, Title Iii, Part E $101,536
93.667 Social Services Block Grant $64,328
93.053 Nutrition Services Incentive Program $53,290
93.791 Money Follows the Person Rebalancing Demonstration $50,000
93.324 State Health Insurance Assistance Program $28,776
93.043 Special Programs for the Aging_title Iii, Part D_disease Prevention and Health Promotion Services $20,969
93.071 Medicare Enrollment Assistance Program $11,616
93.048 Special Programs for the Aging_title Iv_and Title Ii_discretionary Projects $5,932