Finding 43213 (2022-002)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-06-26

AI Summary

  • Core Issue: There was a significant deficiency in internal controls, leading to $112,581 in allowable costs being misallocated between grants.
  • Impacted Requirements: Compliance with 2 CFR 200.309 regarding allowable costs for federal awards was not met.
  • Recommended Follow-Up: Improve communication methods among staff to ensure clarity on cost allowability for each grant.

Finding Text

2022-002: Considered a significant deficiency in internal control over compliance/immaterial non-compliance Program: ALN 93.959 Block Grants for Prevention and Treatment of Substance Abuse (COVID-19 - ARPA Prevention) Criteria: As detailed by 2 CFR 200.309, ?A non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award that were authorized by the Federal awarding agency or pass-through entity.?. Condition: During testing it was noted that $112,581 of costs that were allowable under COVID-19 - ARPA Treatment were incorrectly allocated from COVID-19 - ARPA Treatment to ARPA Prevention. Cause/Effect: This condition appears to be a breakdown of communication between members of the entity?s staff relating to the allowability of costs under different grants. Questioned Cost: $112,581 Recommendation: We recommend that the Entity review its methods for communicating among its staff to ensure that staff appropriately understand the allowability of costs under each grant. View of Responsible Official: Management is in agreement with this recommendation.

Corrective Action Plan

Finding 2022-002: Considered a significant deficiency in internal control over compliance/immaterial non-compliance Program: ALN 93.959 Block Grants for Prevention and Treatment of Substance Abuse (ARPA Prevention) Criteria: As detailed by 2 CFR 200.309, ?A non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award that were authorized by the Federal awarding agency or pass-through entity.?. Condition: During testing it was noted that $112,581 of costs that were allowable under ARPA Treatment were incorrectly allocated from ARPA Treatment to ARPA Prevention. Corrective Action: All finance staff responsible for any allocation of grant funding have undergone additional training or reading on how to allocate grants. The was completed by April 30, 2023.

Categories

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles Period of Performance Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 43214 2022-001
    Significant Deficiency
  • 619655 2022-002
    Significant Deficiency
  • 619656 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.958 Block Grants for Community Mental Health Services $160,864
93.959 Block Grants for Prevention and Treatment of Substance Abuse $143,191
93.788 Opioid Str $38,652