Finding Text
Assistance Listing Number(s): 93.959
Name of Federal Program or Cluster: Block Grants for Prevention and Treatment of Substance Abuse
Assistance Listing Number(s): 93.788
Name of Federal Program or Cluster: State Targeted Response to the Opioid Crisis Grants
Name of Federal Agency: Department of Health and Human Services
Criteria or Specific Requirement: Overhead and indirect costs must be equitably and consistently allocated to grants by using a methodology that is written and designed to ensure these attributes are consistently present.
Condition and Context: The allocated assignment of overhead costs isn’t clearly defined or consistently implemented.
Cause: Routines and habits lapsed during the changes in operations, staffing and management. Changes in key management positions has reduced the institutional knowledge and experience in this area.
Effect or Potential Effect: Grants might be charged the wrong portion of overhead costs.
Repeat Finding: Yes
Recommendation: Develop and write down an allocation plan that identifies all indirect costs and clearly defines an equitable basis of allocation, and then implement the plan and monitor its performance. While this was not implemented during the year ended June 30, 2022, it has subsequently been implemented prior to the report date.
Views of Responsible Officials: ARC implemented formalized process effective January 1, 2023 under which ARC will review, document, implement and monitor procedures for the allocation of indirect costs to an equitable basis of allocation with a methodology that is consistent and clearly defined and is independently monitored by the CFO.