Finding 42850 (2022-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-08-29

AI Summary

  • Core Issue: The Organization lacks formal written policies specifically addressing the Uniform Guidance requirements for federal grants.
  • Impacted Requirements: This affects compliance with policies on payments, procurement, allowable costs, and compensation related to federal awards.
  • Recommended Follow-Up: Develop and implement formal written policies to ensure compliance with the Uniform Guidance criteria.

Finding Text

The Uniform Guidance requires a non-federal entity that has expended federal awards to have written policies pertaining to its federal grants for payments, procurement, allowable costs charged to federal programs, and compensation. Although the Organization has processes and written policies, there is no formal written policies and procedures that specifically covers the criteria requirements under the Uniform Guidance. This condition appears to be the result of a time lag in identifying the requirement and developing a plan for compliance due to changes in accounting personnel and accounting systems. As a result of this condition, the Organization can potentially not comply with criteria requirements under the Uniform Guidance.

Corrective Action Plan

We agree with the audit finding. Our federal funding has continued to this year almost doubling last year. This increase in combination with staffing and system changes have delayed our implementation of written policies as required by the Uniform Guidance for federal grant payments, procurement, allowable costs, and compensation as recommended, until the fourth quarter 2023. Once documented, these policies will be reviewed with all programs and personnel with purchasing and spending authority or hiring and compensation authority. They will also be posted online via the company website for access by all staff. Going forward, these policies will be reviewed and updated as needed following the general Organization's process for all policies and procedures.

Categories

Procurement, Suspension & Debarment Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 42851 2022-002
    Significant Deficiency
  • 619292 2022-001
    Significant Deficiency Repeat
  • 619293 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $884,000
93.498 Provider Relief Fund $378,212
93.150 Projects for Assistance in Transition From Homelessness (path) $235,478
93.788 Opioid Str $231,688
93.959 Block Grants for Prevention and Treatment of Substance Abuse $12,727
93.958 Block Grants for Community Mental Health Services $10,751