Finding 508406 (2023-001)

Material Weakness
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2024-11-20

AI Summary

  • Core Issue: The Authority charged payroll costs based on budget estimates rather than actual time worked, leading to inaccuracies.
  • Impacted Requirements: This violates 2 CFR 200.430(i)(1)(viii)(c), which requires accurate allocation of costs based on actual employee time.
  • Recommended Follow-Up: Implement a review process for all federally funded grants to ensure charges reflect actual time spent on services.

Finding Text

2023-001: Allocable Costs/Cost Principles - Reporting of Payroll based on budget. Assistance Listing Number, Federal Agency, and Program Name: Assistance Listing Number 93.696, Certified Community Behavioral Health Clinic Expansion Grant Federal Award Identification Number and Year: 1H79SM086680-01, Program Grant Period 09/29/2022-09/29/2023 Pass-through Entity: N/A Type: Material weakness in internal controls and material noncompliance with laws and regulations Repeat Finding: No Criteria: Per 2 CFR 200.430(i)(1)(viii)(c), the auditee’s system of internal must include control processes to review after-the-fact interim charges made to a Federal award based on budget estimates. All necessary adjustment must be made such that the final amount charged to the Federal award is accurate, allowable, and properly allocated. Condition: The Authority allocated wages and fringe benefits to the program based on the grant budget, with no adjustment made to actual time spent. Identification of How Likely Questioned Costs Were Computed: A schedule was prepared of time and attendance reports for the year which was compared to the amount charged to the grant. Known Questioned Costs: $19,693 Context: The Authority charged wage and fringe benefit for all employees providing services under the Certified Community Behavioral Health Clinic Expansion Grant based on budget amounts for the fiscal year. A schedule was prepared by management of the time spent on the grant for all employees for the year, which was compared to budget. Cause/Effect: Management was under the understanding that since the budget had been approved by the grantor that they were allowed to charge the budgeted amount to the grant. As a result, wages and fringe benefits charged to the grant were overstated based on time and attendance reports. Recommendation: We recommend the Authority review all federally funded grants and implement a review process to ensure the amount charged to the Federal award is based on the time the employees spend on providing the services. View of Responsible Officials and Planned Corrective Action Plan: See attached corrective action plan.

Corrective Action Plan

Condition: The Authority allocated wages and fringe benefits to the program based on the grant budget, with no adjustment made to actual time spent. Recommendation: Implement a review process to ensure the amount charged to a federal award is based on the time the employees spend on providing the services. Planned Corrective Action: This process has been corrected and only timesheet hours will be used to allocate cost going forward. Contact Person: Anthony Shaver, Chief Financial Officer Anticipated Completion Date: 9/30/2024

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 508407 2023-002
    Material Weakness
  • 508408 2023-003
    Material Weakness
  • 508409 2023-004
    Material Weakness
  • 508410 2023-005
    Material Weakness
  • 508411 2023-006
    Material Weakness
  • 1084848 2023-001
    Material Weakness
  • 1084849 2023-002
    Material Weakness
  • 1084850 2023-003
    Material Weakness
  • 1084851 2023-004
    Material Weakness
  • 1084852 2023-005
    Material Weakness
  • 1084853 2023-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.696 Certified Community Behavioral Health Clinic Expansion Grants $568,350
93.778 Medical Assistance Program $26,610
93.958 Block Grants for Community Mental Health Services $5,814