Finding 398480 (2023-003)

Finding: 2023-003 –Significant Deficiency in Internal Control over Compliance and Noncompliance – Allowable Costs/Cost Principles Identification of federal program: 93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance Criteria: For purposes of the federal government, 2 CFR Chapter II part 200 Subpart E §200.403 requires except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards: (g) Be adequately documented. Condition: Expenditures charged to the federal award was not consistent with supporting documentation. Cause: The Organizations controls in place did not operate effectively to prevent or detect the error. Effect or potential effect: The Organization is not in compliance with 2 CFR §200.403 Questioned Costs: None Context: For this program, a sample of forty expenditures were tested for allowable cost/cost principles. Of the forty samples tested, one of the expenditures did not have adequate documentation to support the amount charged to the federal award. Identification of Repeat Finding: Not applicable. Recommendations: Management should review and assess the effectiveness of internal controls to ensure that the amounts charged to the federal awards have adequate documentation.Views of Responsible Officials: Please refer to Corrective Action Plan.