Finding Text
Federal Agency: U.S. Department of Health & Human Services
Federal Program Name: Refugee and Entrant Assistance Voluntary Agency Programs
Assistance Listing Number: 93.576
Federal Award Identification Number and Year: Various, see below
Pass-Through Agency: Various, see below
Pass-Through Number: Various, see below
Award Period: Various, see below
Compliance Requirement Affected: Allowable Costs & Activities (Payroll)
Direct Agency Direct Award number Award Period
Pass Through Entity (or) Pass Through Number
U.S. Department of
Health & Human Services (Direct) 90RG0243-01-00 10/1/2023-9/30/2024
90RG0225-01-00 10/1/2022-9/29/2025
90ZI0174-01-00 9/30/2023-09/29/2027
Passed through California
Department of Social Services N/A 10/1/2023-9/30/2024
Passed through Los Rios
Community College District N/A 9/30/2022-9/29/2025
Passed through Church World
Services CWS-2024-04-015 10/1/2023-9/30/2024
CWS-2024-10-017 10/1/2024-9/30/2025
Type of Finding: Material Weakness in Internal Control over Compliance
Criteria: 2 CFR 200.403(a) - Except where otherwise authorized by statute, costs must meet the following general criteria in order to be allowable under Federal awards: Be necessary and reasonable for the performance of the Federal award and be allocable thereto under these principles.
Condition: During our single audit procedures of allowable costs, six employees had pay rates that could not be substantiated via evidence of approval on an approved wage rate change form.
Questioned Costs:
Known $14,112
Likely $553,607
Context: A nonstatistical sample of 16 out > 250 pay periods were selected for testing for the Refugee and Entrant Assistance Voluntary Agency Programs program. The condition noted above was identified during our procedures over ODI's Allowable Costs & Activities (payroll).
Effect: ODI did not retain documentation of wage rate change approvals, which could result in unapproved increases in wage rate changes being charged to the grant.
Cause: ODI has a control designed to approve wage rate changes. However, documentation of approval could not be located.
Repeat Finding: The finding is not a repeat finding.
Recommendation: We recommend that ODI strengthen its current policies and procedures to ensure that documentation is retained for approval of all wage rate changes.
Management’s Views: Management takes responsibility for the finding and believes that in future years, they will be able to implement proper controls to mitigate this finding.