Finding Text
Department of Health and Human Services
FFAL #93.087, 90CU0095, 9/30/2018 – 9/29/2024
Enhance Safety of Children Affected by Substance Abuse
Matching
Significant Deficiency in Internal Control over Compliance
Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. In addition, 2 CFR 200.306 establishes that matching funds be verifiable from the non-federal entity’s records and are allowable under Subpart E – Cost Principles and 2 CFR 200.403(g) establishes that costs be adequately documented.
Condition: In our sample of expenditures selected for testing, we noted 5.15 hours identified as Medicaid hours for one employee were not removed from the employee’s total hours when calculating the amount of match for the federal program.
Cause: The employee’s Medicaid hours were not properly included within a revenues report due to the employee’s provider number not being included within the report parameters.
Effect: The Center’s controls did not detect or correct the errors identified, which results in a reasonable possibility that the Center could claim as match disallowed costs under the federal award and would not be able to detect and correct noncompliance in a timely manner.
Questioned Costs: Error resulted in $142; however, the Center has identified more than the match requirement under the federal program.
Context: A total non-statistical sample of 12 out of 58 match transactions were selected for testing, which accounted for $49,219 out of $233,501 of federal match expenditures.
Repeat Finding from Prior Year: Yes, prior year finding 2023-006
Recommendation: We recommend management review the procedures and control processes involving the match claim workbook to ensure compliance with the federal grant.
Views of Responsible Officials: Management is in agreement.