Finding 49534 (2022-009)

2022 ? 009 Federal Agency: Department of Public Health Federal Program Name: Epidemiology Laboratory Capacity for Infectious Diseases (ELC) Assistance Listing Number: 93.323 Federal Award Identification Number and Year: 6 NU50CK000539-01-10, 2021-22 Pass-Through Agency: Passed-through California Department of Health and Human Services Pass-Through Number: CELC 25104/CLEN 25109/CLEX 25113 Award Period: 7/1/2021-6/30/2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or Specific Requirement: Grant compliance requires that Epidemiology Laboratory Capacity (ELC) for infectious diseases payroll costs be incurred within the fiscal year. Condition: During our testing of Allowable Costs, we noted that the County incorrectly included a portion of payroll costs which were predominantly incurred during the prior year. Questioned Costs: None Context: The COVID-19 ELC Enhancing Detection Funding and COVID-19 ELC Enhancing Detection Expansion Funding payroll costs from a prior period were incorrectly included in expenditures. Cause: The department misunderstood that payroll costs should be included based on the period in which they were incurred instead of the payroll disbursement date. Effect: The County using the disbursement date for payroll costs could result in noncompliance with program requirements as costs should be charged when they are incurred. Repeat Finding: Not a repeat finding. Recommendation: CLA recommends the County to work with department to provide training over understanding the grant agreement. As well as further reviewing the programs that received COVID funding when compiling the SEFA. Views of Responsible Officials: There is no disagreement with the audit finding and County will implement our auditor's recommendation.