Finding 547705 (2024-015)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2024
Accepted
2025-03-31
Audit: 351824
Organization: County of Orange, California (CA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: Significant deficiencies in internal controls led to unallowable costs being included in the pooled cost allocation for federal programs.
  • Impacted Requirements: Compliance with 2 CFR Sections 200.303(a), 200.413(c)(1), and 200.416(b) regarding effective internal controls and proper cost allocation.
  • Recommended Follow-Up: Enhance procedures to ensure pooled costs directly benefit federally funded programs and are accurately reported.

Finding Text

2024-015 Program: Medicaid Cluster, Foster Care Title IV-E, Temporary Assistance for Needy Families, Refugee and Entrant Assistance State/Replacement Designee Administered Programs Federal Financial Assistance Listing Number: 93.778, 93.658, 93.558, 93.566 Federal Grantor: U.S. Department of Health and Human Services Award No. and Year: Various Compliance Requirements: Allowable Costs/Cost Principles Type of Finding: Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance Criteria: 2 CFR Section 200.303(a), Internal Controls, states that the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. 2 CFR Section 200.413(c)(1), Direct Costs, state that direct costs are those costs that can be identified specifically with a particular final cost objective, such as a Federal award, or other internally or externally funded activity, or that can be directly assigned to such activities relatively easily with a high degree of accuracy. Costs incurred for the same purpose in like circumstances must be treated consistently as direct or indirect costs. 2 CFR Section 200.416(b), Cost Allocation Plans and Indirect Cost Proposals, states that individual departments typically charge Federal awards for indirect costs through an indirect cost rate. A separate indirect cost rate proposal for each operating department is usually necessary to claim indirect costs under Federal awards. Indirect costs include (1) the indirect costs originating in each operating department of the State, local government, or Indian Tribe carrying out Federal awards; and (2) the costs of central governmental services distributed through the central service cost allocation plan and not otherwise treated as direct costs. Condition: During our testing of pooled costs claimed through County Expense Claims, we noted that one (1) of forty (40) transactions was not a department cost that should have been included in the pooled cost. This pooled allocation affected the following major programs of SSA: 93.778, 96.658, 93.558, and 93.566. Cause: A journal entry was posted to the SSA Department’s general ledger by another County Department without SSA’s review/approval for allowable activities. The other County department inaccurately posted unallowable costs to the SSA department’s general ledger and SSA did not follow their procedures to ensure allowable costs were properly reported as a cost that can be specifically assigned to activities of the major programs identified in the County’s expense claims. Effect: Unallowable costs were included in the direct cost pool to be further allocated to the federal funded major programs. Questioned Costs: Questioned costs identified amounted to $50,971. The allocation of questioned costs to the major programs tested were as follows:  Medicaid Cluster (93.558) - $16,329  Foster Care Title IV-E (93.658) - $17,009  Temporary Assistance for Needy Families (93.778) - $17,633 The allocation to the Refugee and Entrant Assistance State/Replacement Designee Programs (93.566) was of a trivial amount. Context/Sampling: A sample of forty (40) amounting to $10,365,065 out of all costs included in the indirect cost pool of the County expense claims were selected for testing. Repeat Finding from Prior Years: No. Recommendation: We recommend the SSA enhance its procedures to ensure that allocated pooled costs have direct benefit to the department’s various federally funded programs. Views of Responsible Officials: Management agrees. See separately issued Corrective Action Plan.

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 547655 2024-007
    Significant Deficiency
  • 547656 2024-009
    Significant Deficiency
  • 547657 2024-009
    Significant Deficiency
  • 547658 2024-009
    Significant Deficiency
  • 547659 2024-009
    Significant Deficiency
  • 547660 2024-009
    Significant Deficiency
  • 547661 2024-009
    Significant Deficiency
  • 547662 2024-009
    Significant Deficiency
  • 547663 2024-009
    Significant Deficiency
  • 547664 2024-009
    Significant Deficiency
  • 547665 2024-009
    Significant Deficiency
  • 547666 2024-009
    Significant Deficiency
  • 547667 2024-009
    Significant Deficiency
  • 547668 2024-009
    Significant Deficiency
  • 547669 2024-009
    Significant Deficiency
  • 547670 2024-009
    Significant Deficiency
  • 547671 2024-012
    Significant Deficiency
  • 547672 2024-013
    Material Weakness
  • 547673 2024-012
    Significant Deficiency
  • 547674 2024-013
    Material Weakness
  • 547675 2024-012
    Significant Deficiency
  • 547676 2024-013
    Material Weakness
  • 547677 2024-012
    Significant Deficiency
  • 547678 2024-013
    Material Weakness
  • 547679 2024-012
    Significant Deficiency
  • 547680 2024-013
    Material Weakness
  • 547681 2024-012
    Significant Deficiency
  • 547682 2024-013
    Material Weakness
  • 547683 2024-015
    Significant Deficiency
  • 547684 2024-015
    Significant Deficiency
  • 547685 2024-015
    Significant Deficiency
  • 547686 2024-014
    Material Weakness
  • 547687 2024-015
    Significant Deficiency
  • 547688 2024-014
    Material Weakness
  • 547689 2024-015
    Significant Deficiency
  • 547690 2024-014
    Material Weakness
  • 547691 2024-015
    Significant Deficiency
  • 547692 2024-014
    Material Weakness
  • 547693 2024-015
    Significant Deficiency
  • 547694 2024-004
    Significant Deficiency Repeat
  • 547695 2024-015
    Significant Deficiency
  • 547696 2024-004
    Significant Deficiency Repeat
  • 547697 2024-015
    Significant Deficiency
  • 547698 2024-004
    Significant Deficiency Repeat
  • 547699 2024-015
    Significant Deficiency
  • 547700 2024-004
    Significant Deficiency Repeat
  • 547701 2024-015
    Significant Deficiency
  • 547702 2024-004
    Significant Deficiency Repeat
  • 547703 2024-015
    Significant Deficiency
  • 547704 2024-008
    Significant Deficiency
  • 547706 2024-008
    Significant Deficiency
  • 547707 2024-015
    Significant Deficiency
  • 547708 2024-008
    Significant Deficiency
  • 547709 2024-015
    Significant Deficiency
  • 547710 2024-008
    Significant Deficiency
  • 547711 2024-015
    Significant Deficiency
  • 547712 2024-008
    Significant Deficiency
  • 547713 2024-015
    Significant Deficiency
  • 547714 2024-008
    Significant Deficiency
  • 547715 2024-015
    Significant Deficiency
  • 547716 2024-008
    Significant Deficiency
  • 547717 2024-015
    Significant Deficiency
  • 547718 2024-008
    Significant Deficiency
  • 547719 2024-015
    Significant Deficiency
  • 547720 2024-008
    Significant Deficiency
  • 547721 2024-015
    Significant Deficiency
  • 547722 2024-008
    Significant Deficiency
  • 547723 2024-015
    Significant Deficiency
  • 547724 2024-008
    Significant Deficiency
  • 547725 2024-015
    Significant Deficiency
  • 547726 2024-008
    Significant Deficiency
  • 547727 2024-015
    Significant Deficiency
  • 547728 2024-008
    Significant Deficiency
  • 547729 2024-015
    Significant Deficiency
  • 547730 2024-010
    Significant Deficiency
  • 547731 2024-011
    Material Weakness
  • 547732 2024-005
    Significant Deficiency
  • 547733 2024-006
    Significant Deficiency
  • 547734 2024-005
    Significant Deficiency
  • 547735 2024-006
    Significant Deficiency
  • 547736 2024-005
    Significant Deficiency
  • 547737 2024-006
    Significant Deficiency
  • 1124097 2024-007
    Significant Deficiency
  • 1124098 2024-009
    Significant Deficiency
  • 1124099 2024-009
    Significant Deficiency
  • 1124100 2024-009
    Significant Deficiency
  • 1124101 2024-009
    Significant Deficiency
  • 1124102 2024-009
    Significant Deficiency
  • 1124103 2024-009
    Significant Deficiency
  • 1124104 2024-009
    Significant Deficiency
  • 1124105 2024-009
    Significant Deficiency
  • 1124106 2024-009
    Significant Deficiency
  • 1124107 2024-009
    Significant Deficiency
  • 1124108 2024-009
    Significant Deficiency
  • 1124109 2024-009
    Significant Deficiency
  • 1124110 2024-009
    Significant Deficiency
  • 1124111 2024-009
    Significant Deficiency
  • 1124112 2024-009
    Significant Deficiency
  • 1124113 2024-012
    Significant Deficiency
  • 1124114 2024-013
    Material Weakness
  • 1124115 2024-012
    Significant Deficiency
  • 1124116 2024-013
    Material Weakness
  • 1124117 2024-012
    Significant Deficiency
  • 1124118 2024-013
    Material Weakness
  • 1124119 2024-012
    Significant Deficiency
  • 1124120 2024-013
    Material Weakness
  • 1124121 2024-012
    Significant Deficiency
  • 1124122 2024-013
    Material Weakness
  • 1124123 2024-012
    Significant Deficiency
  • 1124124 2024-013
    Material Weakness
  • 1124125 2024-015
    Significant Deficiency
  • 1124126 2024-015
    Significant Deficiency
  • 1124127 2024-015
    Significant Deficiency
  • 1124128 2024-014
    Material Weakness
  • 1124129 2024-015
    Significant Deficiency
  • 1124130 2024-014
    Material Weakness
  • 1124131 2024-015
    Significant Deficiency
  • 1124132 2024-014
    Material Weakness
  • 1124133 2024-015
    Significant Deficiency
  • 1124134 2024-014
    Material Weakness
  • 1124135 2024-015
    Significant Deficiency
  • 1124136 2024-004
    Significant Deficiency Repeat
  • 1124137 2024-015
    Significant Deficiency
  • 1124138 2024-004
    Significant Deficiency Repeat
  • 1124139 2024-015
    Significant Deficiency
  • 1124140 2024-004
    Significant Deficiency Repeat
  • 1124141 2024-015
    Significant Deficiency
  • 1124142 2024-004
    Significant Deficiency Repeat
  • 1124143 2024-015
    Significant Deficiency
  • 1124144 2024-004
    Significant Deficiency Repeat
  • 1124145 2024-015
    Significant Deficiency
  • 1124146 2024-008
    Significant Deficiency
  • 1124147 2024-015
    Significant Deficiency
  • 1124148 2024-008
    Significant Deficiency
  • 1124149 2024-015
    Significant Deficiency
  • 1124150 2024-008
    Significant Deficiency
  • 1124151 2024-015
    Significant Deficiency
  • 1124152 2024-008
    Significant Deficiency
  • 1124153 2024-015
    Significant Deficiency
  • 1124154 2024-008
    Significant Deficiency
  • 1124155 2024-015
    Significant Deficiency
  • 1124156 2024-008
    Significant Deficiency
  • 1124157 2024-015
    Significant Deficiency
  • 1124158 2024-008
    Significant Deficiency
  • 1124159 2024-015
    Significant Deficiency
  • 1124160 2024-008
    Significant Deficiency
  • 1124161 2024-015
    Significant Deficiency
  • 1124162 2024-008
    Significant Deficiency
  • 1124163 2024-015
    Significant Deficiency
  • 1124164 2024-008
    Significant Deficiency
  • 1124165 2024-015
    Significant Deficiency
  • 1124166 2024-008
    Significant Deficiency
  • 1124167 2024-015
    Significant Deficiency
  • 1124168 2024-008
    Significant Deficiency
  • 1124169 2024-015
    Significant Deficiency
  • 1124170 2024-008
    Significant Deficiency
  • 1124171 2024-015
    Significant Deficiency
  • 1124172 2024-010
    Significant Deficiency
  • 1124173 2024-011
    Material Weakness
  • 1124174 2024-005
    Significant Deficiency
  • 1124175 2024-006
    Significant Deficiency
  • 1124176 2024-005
    Significant Deficiency
  • 1124177 2024-006
    Significant Deficiency
  • 1124178 2024-005
    Significant Deficiency
  • 1124179 2024-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $210.26M
12.U01 Santa Ana River Mainstem Project - Prado Dam Construction $28.70M
93.959 Block Grants for Prevention and Treatment of Substance Abuse $16.79M
93.778 Medical Assistance Program $14.95M
93.658 Foster Care Title IV-E $13.06M
97.036 Covid-19 Disaster Grants - Public Assistance (presidentially Declared Disasters) $12.24M
93.667 Social Services Block Grant $10.80M
93.391 Covid-19 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $7.93M
93.914 Hiv Emergency Relief Project Grants $7.06M
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $4.31M
93.268 Covid-19 Immunization Cooperative Agreements $4.28M
14.218 Community Development Block Grants/entitlement Grants $3.89M
93.659 Adoption Assistance $3.62M
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $3.58M
14.879 Mainstream Vouchers $3.22M
93.069 Public Health Emergency Preparedness $3.22M
20.106 Covid-19 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and Covid-19 Airports Programs $3.10M
93.958 Block Grants for Community Mental Health Services $3.08M
17.278 Wioa Dislocated Worker Formula Grants $3.04M
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $3.03M
16.575 Crime Victim Assistance $2.67M
16.922 Equitable Sharing Program $2.50M
93.556 Marylee Allen Promoting Safe and Stable Families Program $2.38M
93.994 Maternal and Child Health Services Block Grant to the States $2.30M
93.967 Centers for Disease Control and Prevention Collaboration with Academia to Strengthen Public Health $2.09M
17.258 Wioa Adult Program $2.06M
93.917 Hiv Care Formula Grants $1.98M
93.645 Stephanie Tubbs Jones Child Welfare Services Program $1.76M
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $1.75M
93.052 National Family Caregiver Support, Title Iii, Part E $1.67M
14.267 Continuum of Care Program $1.48M
17.259 Wioa Youth Activities $1.37M
20.205 Highway Planning and Construction $1.14M
93.563 Child Support Services $1.01M
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $969,809
97.042 Emergency Management Performance Grants $937,117
20.106 Airport Improvement Program, Infrastructure Investment and Jobs Act Programs, and Covid-19 Airports Programs $896,021
95.001 High Intensity Drug Trafficking Areas Program $876,264
93.686 Ending the Hiv Epidemic: A Plan for America — Ryan White Hiv/aids Program Parts A and B $864,245
20.616 National Priority Safety Programs $826,564
93.889 National Bioterrorism Hospital Preparedness Program $813,832
17.235 Senior Community Service Employment Program $744,566
93.767 Children's Health Insurance Program $718,714
93.053 Nutrition Services Incentive Program $699,668
14.241 Housing Opportunities for Persons with Aids $683,800
93.940 Hiv Prevention Activities Health Department Based $681,949
93.045 Covid-19 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $671,979
93.044 Covid-19 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $662,414
93.918 Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $656,363
93.268 Immunization Cooperative Agreements $647,624
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $616,404
14.231 Emergency Solutions Grant Program $581,610
14.218 Covid-19 Community Development Block Grants/entitlement Grants $573,447
93.150 Projects for Assistance in Transition From Homelessness (path) $556,673
14.896 Family Self-Sufficiency Program $497,083
14.231 Covid-19 Emergency Solutions Grant Program $474,165
10.025 Plant and Animal Disease, Pest Control, and Animal Care $467,969
97.067 Homeland Security Grant Program $342,580
93.590 Community-Based Child Abuse Prevention Grants $335,951
20.608 Minimum Penalties for Repeat Offenders for Driving While Intoxicated $328,312
10.555 National School Lunch Program $302,657
93.052 Covid-19 National Family Caregiver Support, Title Iii, Part E $280,174
16.753 Congressionally Recommended Awards $265,962
14.239 Home Investment Partnerships Program $262,455
93.603 Adoption and Legal Guardianship Incentive Payments Program $224,354
10.553 School Breakfast Program $188,496
16.838 Comprehensive Opioid, Stimulant, and Other Substances Use Program $174,441
15.226 Payments in Lieu of Taxes $157,550
93.558 Temporary Assistance for Needy Families $154,996
20.600 State and Community Highway Safety $141,438
97.046 Fire Management Assistance Grant $141,341
93.043 Special Programs for the Aging, Title Iii, Part D, Disease Prevention and Health Promotion Services $138,168
16.835 Body Worn Camera Policy and Implementation $135,144
93.042 Special Programs for the Aging, Title Vii, Chapter 2, Long Term Care Ombudsman Services for Older Individuals $134,412
93.323 Covid-19 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $123,577
93.071 Medicare Enrollment Assistance Program $120,954
16.742 Paul Coverdell Forensic Sciences Improvement Grant Program $111,159
93.977 Sexually Transmitted Diseases (std) Prevention and Control Grants $96,073
93.043 Covid-19 Special Programs for the Aging, Title Iii, Part D, Disease Prevention and Health Promotion Services $88,208
16.U01 Oc Regional Computer Forensics Laboratory (ocrcfl) $73,452
20.939 Safe Streets and Roads for All $73,253
16.741 Dna Backlog Reduction Program $73,091
93.090 Guardianship Assistance $68,774
97.U01 Preparing for Emerging Threats and Hazards Tsa: National Explosives Detection Canine Team Program $51,000
93.324 State Health Insurance Assistance Program $48,616
21.032 Local Assistance and Tribal Consistency Fund $47,918
10.576 Senior Farmers Market Nutrition Program $44,000
14.239 Covid-19 Home Investment Partnerships Program $43,189
97.106 Securing the Cities Program $42,964
93.041 Special Programs for the Aging, Title Vii, Chapter 3, Programs for Prevention of Elder Abuse, Neglect, and Exploitation $41,099
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $32,557
21.016 Equitable Sharing $32,071
10.665 Schools and Roads - Grants to States $30,449
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $29,770
16.738 Edward Byrne Memorial Justice Assistance Grant Program $29,698
93.042 Covid-19 Special Programs for the Aging, Title Vii, Chapter 2, Long Term Care Ombudsman Services for Older Individuals $25,899
16.U02 Orange County Drug Enforcement Task Force $21,042
93.747 Elder Abuse Prevention Interventions Program $14,320
97.012 Boating Safety Financial Assistance $14,182
16.U03 Orange County Alcohol, Tobacco, Firearms & Explosives Task Force $13,489