Finding Text
Federal Agency: U.S. Department of Health and Human Services
Federal Program Name: Substance Abuse Prevention and Treatment Block Grant (SABG)
Assistance Listing Number: 93.959
Federal Award Identification Number and Year: K6103.01 – 2023
Pass-Through Agency: Washington State Health Care Authority
Pass-Through Number(s): K6103.01
Award Period: July 1, 2022 – June 30, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance – Period of Performance; Other Matters
Criteria or specific requirement: Under §200.309, a non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance applicable to the grant.
Condition: During audit procedures performed, we noted two payroll transactions tested included a pay date prior to the beginning period of performance, and the payroll costs were charged to the grant.
Questioned costs: None.
Context: During audit procedures performed, we tested five payroll transactions for beginning period of performance testing related to ALN 93.959 and noted one of the transactions had a pay period that began prior to the period of performance beginning date for the grant, and the payroll costs incurred prior to the beginning period of performance date were charged to the grant.
During payroll testing performed related to allowable costs and activities, of the 10 payroll transactions selected for testing, one was noted in which the pay period was prior to the period of performance beginning date for the grant, and the payroll costs incurred prior to the beginning period of performance date were charged to the grant.
Cause: OBHC’s internal controls lacked proper procedures to ensure expenditures were not being charged to the grant if it was not incurred within the period of performance.
Effect: OBHC charged expenditures to the grants and was reimbursed for these costs that included payroll costs incurred outside of the contract period of performance.
Repeat finding: The finding is a repeat of a finding in the immediate prior year. Prior year finding number was 2022-002.
Recommendation: We recommend that OBHC develop a procedure to ensure that payroll transactions are properly allocated to grants and charged to grant awards based on the dates incurred to ensure the costs are within the period of performance.
Views of responsible officials: There is no disagreement with the audit finding.