Finding 523543 (2023-006)

Material Weakness
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2025-02-18
Audit: 342835
Organization: Alternatives, Inc. (IL)
Auditor: Porte Brown LLC

AI Summary

  • Core Issue: The Organization failed to provide adequate documentation for costs allocated to the federal program in 12 out of 40 transactions.
  • Impacted Requirements: Compliance with 2 CFR 200.405, which mandates proper allocation of costs based on proportional benefit.
  • Recommended Follow-Up: Management should enhance internal controls to ensure all cost allocations are well-supported and accurately reflect program benefits.

Finding Text

Criteria: 2 CFR 200.405 maintains that costs which are allocable to more than one program be allocated based on the proportional benefit or as determined on any reasonable documented basis. Condition: Of the testing population of 40 transactions, for 4 transactions the Organization was unable to provide support for the amount allocated to the federal program. For an additional 8 transactions the Organization did not provide the support for the expenditure. Views of Responsible Officials: Management agrees with the finding; see corrective action plan. Cause: Due to limited staffing resources, the Organization was not able to ensure maintenance of adequate documentation. Effect: The Organization must be able to demonstrate the expenses allocated to the program is properly supported to ensure adequate allocation records. Questioned Costs: Unknown Recommendation: Management should review and refine its process of allocating costs by grant to ensure that the costs are supported by a system of internal controls which provides reasonable assurance that the charges are accurate, properly allocated, and reasonably reflect the proportional benefit tot hat program.

Corrective Action Plan

Due to limited staffing resources, the Organization was not able to ensure maintenance of adequate documentation. The Organization has made efforts to ensure that proper documentation is maintained and accessible by necessary staff.

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 523540 2023-003
    Material Weakness
  • 523541 2023-004
    Significant Deficiency
  • 523542 2023-005
    Material Weakness
  • 523544 2023-007
    Significant Deficiency Repeat
  • 1099982 2023-003
    Material Weakness
  • 1099983 2023-004
    Significant Deficiency
  • 1099984 2023-005
    Material Weakness
  • 1099985 2023-006
    Material Weakness
  • 1099986 2023-007
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.667 Social Services Block Grant $1.76M
93.959 Block Grants for Prevention and Treatment of Substance Abuse $557,660
84.425 Education Stabilization Fund $228,498
14.218 Community Development Block Grants/entitlement Grants $166,860
21.027 Coronavirus State and Local Fiscal Recovery Funds $32,393