Finding 384340 (2023-001)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2024-03-25
Audit: 297454
Organization: Chestnut Health Systems, INC (IL)

AI Summary

  • Core Issue: Incorrect payroll amounts were used, leading to overstated expenditures charged to the grant.
  • Impacted Requirements: Compliance with 2 CFR 200.430 regarding accurate compensation reporting for federal awards.
  • Recommended Follow-Up: Improve tracking and automation of cost coding to minimize manual errors in grant expense reporting.

Finding Text

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Block Grants for Prevention and Treatment of Substance Abuse Assistance Listing Number: 93.959 Pass-Through Entity: Illinois Department of Human Services Pass-Through Number: 43CBC03483 and 43CBZ03223 Award Periods: July 1, 2022 – June 30, 2023 Type of Finding: Immaterial Noncompliance and Significant deficiency in internal control over compliance Criteria: 2 CFR 200.430 indicates that compensation for personal services includes all remuneration, paid currently or accrued, for services of employees rendered during the period of performance under the Federal Award. Condition: The Organization used an incorrect payroll amount when coding employee payroll expense to the grant causing the expenditures charged to the grant to be overstated. Questioned Costs: $4,555 Context: Two of forty transactions selected for testing. Cause: Oversight Effect: The Organization may draw down funding for a greater amount than expenses they have incurred. Repeat Finding: No. Recommendation: Management should refine its process for tracking costs and charging costs to grants and look for opportunities to automat the process and reduce manual involvement, which creates an opportunity for error. Views of Responsible Officials: There is no disagreement with the audit finding.

Categories

Questioned Costs Internal Control / Segregation of Duties Subrecipient Monitoring Allowable Costs / Cost Principles Cash Management Period of Performance Significant Deficiency

Other Findings in this Audit

  • 384339 2023-001
    Significant Deficiency
  • 960781 2023-001
    Significant Deficiency
  • 960782 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
64.033 Va Supportive Services for Veteran Families Program $992,503
93.696 Certified Community Behavioral Health Clinic Expansion Grants $848,264
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $619,500
93.493 Congressional Directives $508,877
93.958 Block Grants for Community Mental Health Services $432,050
93.273 Alcohol Research Programs $295,788
93.526 Affordable Care Act (aca) Grants for Capital Development in Health Centers $260,649
14.267 Continuum of Care Program $224,903
93.495 Community Health Workers for Public Health Response and Resilient $209,610
93.667 Social Services Block Grant $207,200
93.498 Provider Relief Fund $182,522
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $178,432
32.006 Covid-19 Telehealth Program $168,895
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $159,546
93.297 Teenage Pregnancy Prevention Program $151,190
93.788 Opioid Str $120,308
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $120,000
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $119,272
21.027 Coronavirus State and Local Fiscal Recovery Funds $119,060
93.268 Immunization Cooperative Agreements $112,500
93.276 Drug-Free Communities Support Program Grants $93,153
93.665 Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 $83,151
93.092 Affordable Care Act (aca) Personal Responsibility Education Program $79,140
93.279 Drug Abuse and Addiction Research Programs $77,936
93.242 Mental Health Research Grants $65,905
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $54,000
93.556 Promoting Safe and Stable Families $30,900
93.359 Nurse Education, Practice Quality and Retention Grants $20,845
93.191 Graduate Psychology Education Program and Patient Navigator and Chronic Disease Prevention Program $5,680
93.959 Block Grants for Prevention and Treatment of Substance Abuse $1,730