FAC Explorer

Finding 478122 (2023-002)

-
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2024-07-10
Audit: 314826
Organization: Resources for Human Development, INC (PA)
Auditor: Marcum LLP

AI Summary

  • Core Issue: Inadequate documentation for payroll transactions affects compliance with federal cost principles.
  • Impacted Requirements: Must adhere to 2 CFR Part 200, Subpart E for allowable costs under federal awards.
  • Recommended Follow-Up: Conduct annual reviews of personnel files to ensure all payroll documentation is properly retained.

Finding Text

FINDING 2023-002 Lack of adequate documentation to support certain payroll transactions. FEDERAL PROGRAM 93.778 – Medical Assistance Program 93.958 – Block Grants for Prevention and Treatment of Substance Abuse FINDING TYPE Noncompliance of allowable costs and cost principles. CRITERIA Allowable costs incurred under federal awards must be in accordance with the requirements for allowable costs/cost principles contained in 2 CFR Part 200, Subpart E as well as the terms and conditions of the federal award. CONDITION AND CONTEXT RHD was unable to provide sufficient documentation to support select payroll costs for 2 out of 80 audit selections to determine if cost were allowable or unallowable to each federal award.CAUSE RHD maintains documentation to support the amounts included a payroll transaction within paper personnel files. RHD was unable to provide documentation to support benefit dollars included in 2 out of 80 payroll selections. EFFECT OR POTENTIAL EFFECT The Organization is not in compliance with federal requirements regarding allowable costs and cost principles. RECOMMENDATION We recommend that personnel files be reviewed on an annual basis to ensure that documentation is retained to support all payroll transactions.

Corrective Action Plan

Management agrees that more document review and oversight is needed to ensure that payroll transactions are supported. In the fiscal year ended June 30, 2023, RHD selected and implemented in phases a new Human Resource Information System (“HRIS”), Paylocity. In April 2023, RHD went live with the first phase, Payroll and Benefits modules. During the fiscal year ending June 30, 2025, it is anticipated that the second phase of the HRIS will fully replace the current system, and the process for completing forms currently completed on paper will be replaced with electronic records within Paylocity. Additionally, RHD intends to formally affiliate with Inperium as disclosed in Note 3 of the accompanying financial statements. Administrative functions will be evaluated and redesigned as part of the affiliation process. Position Title of Person Overseeing This Issue: Chief Human Resource Officer

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $2.16M
16.034 Coronavirus Emergency Supplemental Funding Program $736,737
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $427,790
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $330,244
93.150 Projects for Assistance in Transition From Homelessness (path) $264,075
14.239 Home Investment Partnerships Program $229,825
93.498 Provider Relief Fund $213,861
97.024 Emergency Food and Shelter National Board Program $192,438
93.959 Block Grants for Prevention and Treatment of Substance Abuse $156,965
93.526 Affordable Care Act (aca) Grants for Capital Development in Health Centers $137,686
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $132,120
93.217 Family Planning_services $63,065
93.788 Opioid Str $55,100
14.218 Community Development Block Grants/entitlement Grants $53,970
93.686 Ending the Hiv Epidemic: A Plan for America — Ryan White Hiv/aids Program Parts A and B (b) $25,000
14.267 Continuum of Care Program $22,819
14.231 Emergency Solutions Grant Program $21,808
93.778 Medical Assistance Program $21,220
93.914 Hiv Emergency Relief Project Grants $20,111
93.667 Social Services Block Grant $19,748
93.994 Maternal and Child Health Services Block Grant to the States $13,296
93.569 Community Services Block Grant $10,000
93.974 Family Planning_service Delivery Improvement Research Grants $10,000
93.958 Block Grants for Community Mental Health Services $9,630
93.558 Temporary Assistance for Needy Families $8,099