Finding 596713 (2022-002)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-06-25
Audit: 21044
Organization: Healthwest (MI)

AI Summary

  • Core Issue: FICA expenses were overcharged by $14,047 due to incorrect allocation for one employee.
  • Impacted Requirements: Compliance with 2 CFR 200.309, which limits charges to allowable costs during the performance period.
  • Recommended Follow-Up: CMHSP should review and improve its fringe benefit allocation methods for grants.

Finding Text

2022-002: OVERCHARGE OF FICA EXPENSES Type: Considered a significant deficiency in internal control over compliance/immaterial non-compliance Program: ALN 93.958 Block Grants for Community Mental Health Services (Intensive Crisis Stabilization Services Expansion Grant) Criteria: As detailed by 2 CFR 200.309, ?A non-Federal CMHSP may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through CMHSP made the Federal award that were authorized by the Federal awarding agency or pass-through CMHSP.?. Condition: During testing it was noted that FICA costs were overcharged by $14,047. Cause/Effect: This condition appears to be the result of an incorrect allocation for fringe for one employee. Questioned Cost: 14,047 Recommendation: We recommend that the CMHSP review its methods for determining allocations of fringe benefits to the grants. Management?s Resp: Management is in agreement with this recommendation.

Categories

Questioned Costs Allowable Costs / Cost Principles Period of Performance Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 20271 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $1.51M
93.104 Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (sed) $694,826
93.788 Opioid Str $469,987
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $283,765
93.665 Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 $162,024
93.959 Block Grants for Prevention and Treatment of Substance Abuse $102,690
93.434 Every Student Succeeds Act/preschool Development Grants $75,793
93.778 Medical Assistance Program $62,729
14.235 Supportive Housing Program $21,518
93.958 Block Grants for Community Mental Health Services $17,949