Finding 36551 (2022-003)

Finding 2022-003 Improve Recordkeeping of Expense Allocations (Block Grants for Prevention and Treatment of Substance Abuse Assistance Listing #93.959) Condition: Management could not provide support for program expenditures selected for testing. Criteria: In order to maintain a proper audit trail, Comprehend must keep allocation calculations that support costs charged to grants on file and readily available. Statement of Cause: The complexity of the payroll system utilized made reconciling allocations of payroll at the program level difficult. Additionally, Comprehend no longer uses this payroll provider so reconciling these items during the audit was not possible due to no longer having access to the former payroll provider?s software and payroll data. Effect: We were unable to test the accuracy of the expense allocation due to lack of supporting documentation. Questioned Cost: No material questioned costs were noted related to this finding. Perspective Information: During our testing of grant expenses, support for the expenditure or its allocation to the program could not be provided by management for fourteen out of the forty expenditures selected for testing. Indication of Repeat Finding: This is not a repeat finding. Recommendation: We recommend that Comprehend maintains supporting documentation of all expense allocations and have it on file and readily available for the audit. Views of Responsible Officials: Management agrees that the supporting documentation has to be maintained to comply with grant requirements. Comprehend is working with its payroll processing provider to develop reporting to assist with the reconciliation of payroll allocations to various programs.