FAC Explorer

Finding 58989 (2022-002)

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Requirement
B
Questioned Costs
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Year
2022
Accepted
2023-05-17
Audit: 53981
Organization: Uncas Health District (CT)
Auditor: Hoyt Filippetti & Malaghan LLC

AI Summary

  • Core Issue: Cost allocations in grant reports did not match supporting documentation, leading to a lack of accountability.
  • Impacted Requirements: Costs must be based on a cost allocation plan and align with accounting records for reimbursement.
  • Recommended Follow-Up: Implement controls to ensure all grant reports reconcile with underlying records to improve accuracy.

Finding Text

2022-002 REPORTING ALLOWABLE/ALLOCABLE COSTS Grantors: U.S Department of Health and Human Services Award Names: Epidemiology and Laboratory Capacity for Infectious Diseases (ELC) / Public Health Emergency Preparedness Award Year: Various Award Numbers: Various CFDA Numbers: 93.323 / 93.069 Criteria: Costs reported and submitted for reimbursement should be based on a cost allocation plan and agree to the underlying accounting records. Condition: During our audit testing, we noted cost allocations included on submitted grant reports did not reconcile directly back to the underlying supporting documentation (payroll records, etc.) Cause: No individuals at the District were allocating costs based on supporting documentation. Many costs were allocated in the accounting records (general ledger) based on what was budgeted for in the grants. Effect: There was no accounting trail between costs reported and supporting records. Questioned Costs: None noted. Recommendation: The District should implement controls to ensure all reporting and requests for reimbursements submitted to grantors reconcile with the underlying accounting records as allocated. Management?s Views and Corrective Action Plan: Management agrees with this finding and has outlined its resulting actions in a separately issued Corrective Action Plan.

Corrective Action Plan

Finding Reference Number: 2022-002 Reporting Allowable/Allocable Costs Description of Finding: During the audit testing, the auditor noted cost allocations included on submitted grant reports did not reconcile directly back to underlying supporting documentation (payroll records, etc.). Therefore, there was no accounting trail between costs reported and supporting records. Statement of Concurrence or Nonconcurrence: The Uncas Health District agrees with the audit finding. Corrective Action: Each employee that receives funding as part of a grant will note the time spent/ grant time spent on each day in the NOTES section of their timesheet. This information will be used to enter information into Quickbooks and for the required reporting. This process will be outlined in the District's Cost Allocation Plan. Name of Contact Person: Patrick R. McCormack, MPH, Director of Health, {860} 823-1189 x112, doh@uncashd.org; Laura Boudah, Office Manager, {860} 823-1189 x111, ofcmgr@uncashd.org Projected Completion Date: This change will be implemented immediately.

Categories

Allowable Costs / Cost Principles Cash Management Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $248,191
93.268 Immunization Cooperative Agreements $208,570
93.069 Public Health Emergency Preparedness $68,333
16.838 Comprehensive Opioid Abuse Site-Based Program $45,119
93.758 Preventive Health and Health Services Block Grant Funded Solely with Prevention and Public Health Funds (pphf) $27,805
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $25,370
93.889 National Bioterrorism Hospital Preparedness Program $19,500
93.008 Medical Reserve Corps Small Grant Program $10,000
93.094 Well-Integrated Screening and Evaluation for Women Across the Nation $4,883
93.138 Protection and Advocacy for Individuals with Mental Illness $4,320
21.019 Coronavirus Relief Fund $2,081
21.027 Coronavirus State and Local Fiscal Recovery Funds $435