Finding 499932 (2023-001)

2023-001 – Period of Performance Information on Federal Program - 93.788 Opioid STR Criteria – §200.344(b) specifies that unless the federal awarding agency or pass-through entity authorizes an extension, a non-federal entity must liquidate all financial obligations incurred under the federal award not later than 120 calendar days after the end date of the period of performance as specified in the terms and conditions of the federal award. Condition – During our testing of period of performance, we noted that one expenditure incurred under the major program was liquidated after the period specified by the federal regulation sited above. Cause - Policies and procedures were not appropriately adhered to ensure that expenditures were liquidated within the period specified by the federal regulation. Effect or Potential Effect - An ineffective control system related to the period of performance process can lead to noncompliance with laws and regulations. Federal awards charged for allowable costs but not liquidated within the period allowed by the federal regulation may result in disallowed expenditures. Questioned Costs - $8,311. Context – This is a condition identified per review of the Organization’s compliance with specified requirements using a statistically valid sample. Repeat Finding - This is not a repeat finding from prior year. Recommendation - We recommend that the Organization ensure compliance with the period of performance requirements of the Uniform Guidance by implementing the following: • Conduct a thorough review of current policies and procedures related to the liquidation of financial obligations. Ensure they align with federal regulations, specifically §200.344(b). • Provide training sessions for staff involved in financial management and compliance to ensure they understand the importance of adhering to the specified liquidation period and the potential consequences of noncompliance. • Establish a robust monitoring system to track the timeline of expenditures from incurrence to liquidation. This system should include alerts or reminders as deadlines approach. • Schedule regular internal audits to assess compliance with federal regulations and identify any deviations early. Use these audits to continuously improve processes. Views of Responsible Officials: Management agrees with the finding. See management’s corrective action plan.