Finding Text
Block Grants for Prevention and
Treatment of Substance Abuse
ALN No. 93.959
U.S. Department of Health and Human Services
Opioid STR
ALN No. 93.788
U.S. Department of Health and Human Services
Criteria or Specific Requirement – Activities Allowed and Unallowed and
Cost Principles – 2 CFR Part 200, Subpart E, and Period of Performance – 2
CFR sections 200.308, 200.309, and 200.403(h)
Condition – A sample of 80 expenditures were selected from each of the
following populations:
• ALN No. 93.959 – 1,839 items totaling $1,243,944
• ALN No. 93.788 – 1,502 items totaling $2,285,983
The samples were not, and are not intended to be, statistically valid. Of
the 80 expenditures tested from each grant program, the following were
determined to lack appropriate supporting documentation to support
being charged to grant program:
• ALN No. 93.959 - 51 items totaling $26,145, including projected
errors over the total population totaling $348,063
• ALN No. 93.788 - 6 items totaling $18,183, including projected
errors over the total population totaling $165,074
The Organization did not have adequate supporting documentation
demonstrating actual time and effort reporting and lacked evidence of
supporting invoices.
Cause – The Organization charged budgeted percentages to the
grant programs without a system in place to monitor and track that actual
time and effort was consistent with budgeted percentages. In addition, the
Organization charged expenditures to the grant programs without evidence of
supporting invoices.
Effect or potential effect – Costs charged to the grant programs could have
varied from actual time and effort. In addition, costs charged to the grant
could not be supported by actual invoices.
Questioned costs –
• ALN No. 93.959 - $26,145
• ALN No. 93.788 - $18,183
Context – The Organization did not have a reasonable methodology of
allocating costs to these grant programs and did not maintain proper
supporting invoices.
Identification as a repeat finding, if applicable – Not a repeat finding
Recommendation – Management should implement policies and
procedures that strengthen internal control over compliance in relation to
activities allowed and cost principles. The policy and procedure should
be designed to ensure that a reasonable allocation methodology is
implemented and followed or that time and effort is certified by the
employee on a regular basis. In addition, management should implement a
document retention policy consistent with 2 CFR 200.334.