Finding Text
Federal Agency:
U.S. Department of Health and Human Services
Pass-through Agency:
State of Connecticut, Department of Mental Health and Addiction Services (COVID-19)
Commonwealth of Pennsylvania, Department of Drug and Alcohol Programs
State of Louisiana, Department of Mental Health and Substance Abuse Services
State of Oklahoma, Department of Mental Health and Substance Abuse Services
Program Name (Assistance listing #):
Block Grants for Prevention and Treatment of Substance Abuse (93.959)
Finding 2023-004: Allowable Costs/Cost Principles - Time and Effort Reporting (Material
Weakness)
Criteria:
The distribution of the salaries and wages to awards must be supported by personnel activity reports or
timesheets. Personnel activity reports or timesheets reflecting the distribution of activity of each
employee must be maintained for all staff members whose compensation is charged, in whole or in
part, to government funded contracts.
The reports must reflect an after-the-fact determination of the actual activity of each employee. Each
report must account for total activity for which employees are compensated and which is required in
fulfillment of their obligations. The report must be signed by the individual employee, or by a
responsible supervisory official having knowledge of the activities performed by the employee, that the
distribution of activity represents a reasonable estimate of the actual work performed by the employee
during the periods covered by the reports. The reports must be prepared at least monthly and must
coincide with one or more pay periods.
Statement of Condition:
For all selected samples, there were no personnel activity reports or timesheets to evidence the
allocation of time to government contracts.
Cause:
Procedures and internal controls associated with actual time and effort charged to government
contracts were not in place.
Effect:
Management did not have sufficient documentation for the allocation of time to government contracts.
Questioned Costs:
$107,080
Perspective Information:
The sampling was a statistically valid sample and the finding applied to all selected samples and
represents a systemic issue.
Identification of Repeat Finding:
This finding is a repeat of Finding 2022-001.
Recommendation:
We recommend that management implement policies, controls and procedures to ensure that all time
and effort allocations to federal programs are appropriately documented to comply with applicable cost
principles.
Views of Responsible Officials:
Management is in agreement with the finding. Management has implemented additional policies,
procedures and controls to document the allocation of time and effort