Finding Text
GRANT REPORTING-WAGES AND FRINGE BENEFIT COSTS & GENERAL EXPENDITURES: FINDING TYPE: MATERIAL NONCOMPLIANCE/MATERIAL WEAKNESS IN INTERNAL CONTROL OVER COMPLIANCE (ALLOWABLE COSTS/COST PRINCIPLES). PROGRAMS: SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS AND CHILDREN; ASSISTANCE LISTING NUMBER 10.557; AWARD NUMBERS 50022 AND 50035, PASSED THROUGH THE MICHIGAN DEPARTMENT OF COMMUNITY HEALTH. ELC CONTRACT TRACING, INVESTIGATION, TESTING COORD., AND INFECTION PREVENTION; ASSISTANCE LISTING NUMBER 93.323; AWARD NUMBER 251156, PASSED THROUGH THE MICHIGAN DEPARTMENT OF COMMUNITY HEALTH. CRITERIA: A RECIPIENT OF FEDERAL AWARDS IS REQUIRED TO SUBSTANTIATE ELIGIBLE COSTS FOR FEDERAL PROGRAMS. IN THE CASE OF THE HEALTH DEPARTMENT WAGES AND FRINGE BENEFIT COSTS AND GENERAL EXPENDITURES, THE GENERAL LEDGER WAS NOT UPDATED TO ALLOCATE EXPENSES ACCURATELY FOR EACH PROGRAM. CONDITION: AS PART OF ITS RECORD KEEPING PROCESS THE HEALTH DEPARTMENT COULD NOT PROVIDE APPROPRIATE SOURCE INFORMATION TO SUBSTANTIATE THE ELIGIBLE COSTS ALLOCATED TO EACH PROGRAM. CAUSE: THE CONDITION APPEARS TO HAVE BEEN CAUSED BY NOT COMPARING ELIGIBLE COSTS, PER THE HEALTH DEPARTMENT'S GENERAL LEDGER TO SOURCE INFORMATION. EFFECT: AS A RESULT OF THIS CONDITION, THE HEALTH DEPARTMENT MISSTATED THE AMOUNTS INCLUDED IN GRANT REPORTS BY AMOUNTS THAT WERE MATERIAL TO THE GRANT PROGRAM. THIS MISREPORTING CAUSES THE HEALTH DEPARTMENT TO RECEIVE INACCURATE ALLOCATIONS. QUESTIONED COSTS: SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN; ASSISTANCE LISTING NUMBER 10.5547; 17 GENERAL EXPENDITURES SELECTIONS OF 25 WERE NOT SUBSTANTIATED. ELC CONTRACT TRACING, INVESTIGATION, TESTING COORD., AND INFECTION PREVENTION; ASSISTANCE LISTING NUMBER 93.323; 21 WAGES AND FRINGE BENEFIT EXPENDITURE SELECTIONS OF 25 WERE NOT SUBSTANTIATED AND 13 GENERAL EXPENDITURES SELECTIONS OF 25 WERE NOT SUBSTANTIATED. RECOMMENDATION: WE RECOMMEND THAT THE HEALTH DEPARTMENT UPDATE THEIR PROCEDURES FOR FEDERAL AWARDS. THE HEALTH DEPARTMENT'S GENERAL LEDGER SHOULD BE REVIEWED FOR HOW ELIGIBLE COSTS ARE ALLOCATED. AN UPDATED SYSTEM OF RECORDS SHOULD BE AVAILABLE FOR SOURCE INFORMATION FOR ELIGIBLE COSTS. VIEW OF RESPONSIBLE OFFICIALS: THE HEALTH DEPARTMET WILL REVISIT THEIR PROCEDURES AND METHOD OF ASSEMBLING SOURCE INFORMATION.