Finding Text
Recordkeeping of Expense Allocations (#93.958 Block Grants for Community Mental Health Services and #93.959 Block Grants for Prevention and Treatment of Substance Abuse)
Condition: Management could not provide the support to show the justification for how certain program expenditures were allocated (specifically payroll).
Criteria: In order to maintain a proper audit trail, Comprehend should keep allocation calculations that support costs charged to grants on file and readily available.
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.
Indication of Repeat Finding: This is a repeat finding of 2022-003.
Recommendation: We recommend that Comprehend maintains supporting documentation of all expense allocations and have it on file and readily available for the audit.
Management’s Response: Effective 7/1 Comprehend switched payroll providers to Paycom. Both the CFO and Accounting Assistant have tested allocation calculations and completed an internal audit to verify that allocation calculations can be supported when requested and are readily available. As part of the quarterly closing process, the CFO will conduct an internal audit to confirm that the proper allocations are occurring and recorded.