Finding 59446 (2022-005)

Material Weakness
Requirement
ABH
Questioned Costs
-
Year
2022
Accepted
2023-09-27
Audit: 56457
Organization: Washburn Center for Children (MN)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: Washburn Center lacks proper documentation to support actual payroll expenses for nine employees working on the program.
  • Impacted Requirements: Compliance with CFR 200.430 standards for compensation and internal controls over payroll processes.
  • Recommended Follow-Up: Review and reinforce payroll procedures with staff to ensure proper documentation and adherence to compliance requirements.

Finding Text

Department of Health and Human Services Federal Financial Assistance Listing 93.958, All Awards Block Grants for Community Mental Health Services Activities Allowable or Unallowed, Allowable Costs/Cost Principles, and Period of Performance Material Weakness in Internal Control over Compliance and Other Noncompliance Criteria: CFR 200.430 set forth the compensation for personal services standards non-federal entities other than states must follow when operating federal programs. Condition: Washburn Center has an internal control process designed to approve and calculate the payroll expenses and allocation of time to the program, but they did not maintain support for a true up of actual time spent on the program compared to the budget. Cause: The controls in place did not operate as designed and failed to detect that support was not maintained to support actual time spent working on the program versus the budget amount. Effect: Nine employees? wages did not include support for actual time spent working on the program. Questioned Costs: No questioned costs over $25,000. Context: Nine employees, accounting for $199,840, were selected for testing for the program from a total of 28 total employees that accounted for $736,089. Repeat Finding from Prior Years: No Recommendation: We recommend the procedures related to payroll expenses be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Federal Agency Name: Department of Health and Human Services Program Name: Block Grants for Community Mental Health Services CFDA # 93.958 Finding Summary: Our internal control process is properly designed to approve and calculate the payroll expenses and allocation of time to the program, but we did not maintain support for a true up for actual time spent on the program compared to the budget. Responsible Individuals: Mohamed Omar, MBA, MS, Chief Administrative Officer Corrective Action Plan: The program manager will review and approve the level of effort contributed to the program by the employees. Formal documentation providing the support for a true up of actual time spent on the program compared to the budget will be maintained. Anticipated Completion Date: December 2023

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 59445 2022-004
    Material Weakness
  • 635887 2022-004
    Material Weakness
  • 635888 2022-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.958 Block Grants for Community Mental Health Services $1.61M
21.027 Coronavirus State and Local Fiscal Recovery Funds $192,533