Finding Text
Item:
2023-004
Assistance Listing Number:
93.940
Programs:
HIV Prevention Activities Health Department Based
Federal Agency:
U.S. Department of Health and Human Services
Pass-Through Agencies:
Arizona Department of Health Services
Pass-Through Grantor Identifying Number:
CTR069364, CTR067201, CTR045489, ADHS19-207305
Award Year:
April 1, 2022 to March 31, 2023; August 1, 2022 to July 31, 2023; January 1, 2023 to December 31, 2023; April 1, 2023 to March 31, 2024; August 1, 2023 to July 31, 2024
Compliance Requirement:
Allowable Activities and Costs
Criteria:
In accordance with 2 CFR § 200.430 – Compensation – charges to federal programs for salaries and wages should be supported by a system of internal controls which provides reasonable assurance the amounts charged are accurate, allowable and properly allocated.
Condition:
Incorrect allocation of employee hours were charged to the federal program.
Questioned Costs:
n/a
Context:
In a population of over 250 payroll costs charged to the program, we conducted a non-statistical sample of 40 payroll costs charged to the program. In our sample of 40, we noted that 1 selection in which the employee was paid at an outdated pay rate and paid overtime that was not supported by the employee timesheet. The variances between the amount charged and the amount supported, as well as the projected impact to the entire population, was trivial in nature. This is deemed to be a significant deficiency in internal control over compliance.
Effect:
The system of internal controls was not properly implemented.
Cause:
The entity’s system of internal controls did detect, or document the rationale for, instances in which the amounts charged to a federal program did not agree to the underlying supporting documentation maintained by the Organization.
Identification as a Repeat Finding:
Repeat finding – prior year 2022-004
Recommendation:
The Organization should enhance its processes and controls to ensure that expenses are appropriately reviewed before submission of billing.
Views of Responsible Officials:
Management of the Organization concurs with the finding. See Corrective Action Plan.