Finding Text
Assistance Listing Number: 93.958
Name of Federal Program: Block Grants for Community Mental Health Services
Name of Federal Agency: Department of Health and Human Services
Name of Pass-through Entities and Award Periods: Wisconsin Department of Health Services – October 1, 2021 through September 30, 2022, April 1, 2022 through September 30, 2022, October 1, 2022 through September 30, 2023, Milwaukee County Behavioral Health Division – January 1, 2022 through December 31, 2022, and Milwaukee County Department of Health Services – January 1, 2022 through December 31, 2022
Criteria or Specific Requirement: The Code of Federal Regulations Section 200 subpart E outlines the allowability of cost provisions. Specifically, 2 CFR 200.403(e) states that costs should be determined in accordance with generally accepted accounting principles.
Condition: A prepayment for a 2023 training conference was recorded as an expense of the current period and reimbursed from a grant in the federal program.
Cause: The recording of this transaction as an expense instead of a prepaid expense was because the transaction was not properly reviewed and approved.
Effect or Potential Effect: An expense charged to the federal program could be disallowed.
Context: This appears to be an isolated incident that was identified during other audit procedures. During our testing of for allowability of costs, we selected a sample of 40 expense transactions and 4 payrolls and did not identify any additional questioned costs.
Repeat Finding: No
Recommendation: Expenses should be reviewed and approved by an individual with sufficient knowledge of requirements for allowability before recording in the accounting records.
Views of Responsible Officials: Management agrees with the finding and will have staff attend additional training.