Finding Text
CFDA Title and Number: 93.045 ? Aging Cluster Name of Federal Agency: U.S. Department of Health and Human Services Internal Control over Compliance: Allowable Cost/Cost Principles Criteria: 2 CFR Part 200.405 requires the following direct cost allocation principles: If a cost benefits two or more projects or activities in proportions that can be determined without undue effort or cost, the cost must be allocated to the projects based on the proportional benefit. If a cost benefits two or more projects or activities in proportions that cannot be determined because of the interrelationship of the work involved, then the costs may be allocated or transferred to benefitted projects on any reasonable documented basis. Condition: The Association uses two accounting systems: NOVAtime (time clock system) and MIP (in-house accounting/payroll system) to record the payroll expenses and allocations for each program. The allocation percentages are setup differently in both accounting system. Cause: When the FSA has employee changes, the staff only adjusts the allocation percentage in NOVAtime, which cause minor discrepancies when allocating the payroll-related expenses. Effect or Potential Effect: Overstate and/or understate the program expenses. Questioned Cost: Unable to determine. Repeat of a Prior-Year Finding: No. Recommendation: We recommend that the Association update the MIP system when the staff update the NOVA time system after the personnel action form is reviewed and approved. The Association should also add the system adjustment instructions to the policies and procedures.