Finding Text
Department of Health and Human Services
FFLA #93.087, 90CU0090, 9/30/2020 – 9/29/2023; 90CU0095, 9/30/2018 – 9/29/2024
Enhance Safety of Children Affected by Substance Abuse
Matching
Significant Deficiency in Internal Control over Compliance
Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. In addition, 2 CFR 200.306 establishes that matching funds be verifiable from the non-federal entity’s records and are allowable under Subpart E – Cost Principles and 2 CFR 200.403(g) establishes that costs be adequately documented.
Condition: In our sample of expenditures selected for testing, we noted the following items:
a) The number of hours an employee worked per the approved timesheet vs. the hours claimed in the match claim workbook resulted in a clerical error. (1 instance)
b) Per review of the supporting timesheet and paystub, an employee had mobile crisis pay which was not accurately reduced in the calculation for match in the match claim workbook (2 instances).
Cause: The secondary review of match claim workbook did not identify the clerical errors.
Effect: The Center’s controls did not detect or correct the errors identified, which results in a reasonable possibility that the Center could submit disallowed costs under the federal awards and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: None reported. The program was underallocated.
Context: A total non-statistical sample of 25 match transactions were tested which accounted for $97,208 out of $488,366 of federal match direct program expenditures.
Repeat Finding from Prior Year: No.
Recommendation: We recommend management review the procedures and control processes involving the match claim workbook to ensure compliance with the federal grant.
Views of Responsible Officials: Management is in agreement.