Finding 34982 (2022-001)

-
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-09-29

AI Summary

  • Core Issue: One transaction involved purchasing electronic tablets that were not used for their intended COVID-related purpose.
  • Impacted Requirements: Costs charged to the Provider Relief Fund must directly relate to preventing, preparing for, or responding to coronavirus.
  • Recommended Follow-Up: The Agency should review and update policies to ensure all expenditures align with program regulations and intended uses.

Finding Text

Finding 2022-001, Allowable Costs (Assistance Listing 93.498 Provider Relief Fund Criteria: The federal program 93.498 requires that the costs incurred are used to prevent, prepare for, or respond to coronavirus. Condition and Context: We tested 60 transactions and noted one exception. The Agency?s purchased items in one transaction that were not used for their intended purpose. Cause: Electronic tablets were purchased with the intent to facilitate communications between the Agency?s residents with developmental disabilities and their families. At the time the items were purchased on-site visits were not permitted due to coronavirus. Effect: Equipment charged to the federal funds were not used for their intended purpose. Identification as a repeat finding: No. Questioned costs: $13,214.60. Recommendation: We recommend that the Agency review their policies to assure that expenditures are charged to programs in accordance with regulations. View of responsible officials: The tablets were purchased for a legitimate COVID purpose, to allow, during a period of restricted visitation, community residence individuals to communicate with their families. This type of communication is essential for the well-being of the individuals. After the tablets were purchased but before they were deployed, family members themselves purchased tablets for the individuals in the residences. The tablets did not need to be deployed and except for two have been unused since purchase. Future use of the tablets is ear marked for use in the group homes. The Agency incurred costs to prevent, prepare for, or respond to the coronavirus in excess of Provider Relief Funds received. Had Provider Relief Funds not been used for the tablets in question, the Provider Relief funds would have been used for other appropriate costs. The Agency will review their policies to assure that expenditures charged to programs are used for intended purposes.

Corrective Action Plan

Section III- Federal Awards Findings and Questioned Costs Findings 2022-001, Allowable Costs (Assistance listing No. 93.498 Provider Relief Fund) Persons Responsible: Irene Math, CFO Karen Rosenthal, Controller View of responsible officials: The tablets were purchased for a legitimate COVID purpose, to allow, during a period of restricted visitation, community residence individuals to communicate with their families. This type of communication is essential for the wellbeing of the individuals. After the tablets were purchased but before they were deployed, family members themselves purchased tablets for the individuals in the residences. The tablets did not need to be deployed and except for two have been unused since purchase. Future use of the tablets is ear marked for use in the group homes. The Agency incurred costs to prevent, prepare for, or respond to the coronavirus in excess of Provider Relief Funds received. Had Provider Relief Funds not been used for the tablets in question, the Provider Relief funds would have been used for other appropriate costs. The Agency will review their policies to assure that expenditures charged to programs are used for intended purposes.

Categories

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Equipment & Real Property Management

Other Findings in this Audit

  • 34981 2022-002
    Significant Deficiency
  • 611423 2022-002
    Significant Deficiency
  • 611424 2022-001
    -

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $1.49M
93.498 Provider Relief Fund $823,676