Finding 606589 (2022-002)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-08-20

AI Summary

  • Core Issue: Payroll costs charged to the federal grant were not updated in time, leading to incorrect allocations.
  • Impacted Requirements: The organization must maintain internal controls to ensure only eligible payroll costs are charged to the grant.
  • Recommended Follow-Up: Management should establish a review process to ensure accurate payroll allocations for future reimbursements.

Finding Text

2022-002 ALLOWABLE COSTS Federal Agency: Department of Health and Human Services Federal Program: Maternal, Infant, and Early Childhood Home Visiting Grant Program Assistance Listing Number: 93.870 Federal Award Numbers and Year: SCM36258 Amendment #2 October 1, 2021 - September 30, 2022 SCM36258 Amendment #3 October 1, 2022 - September 29, 2024 SCM58630 October 1, 2021 - September 29, 2023 SCM 65543 October 1, 2022 - September 30, 2024 Condition: The payroll allocation that determines costs charged to the federal grant was not updated in time for the payroll system to adjust costs charged to the grant for the corresponding payroll periods. Criteria: The Organization is required to maintain a system of internal controls that ensures only payroll costs incurred for time spent on federal grant activities is charged to the federal grant. Cause: Management was not aware of the cutoff time in the payroll system after which time entered would not be correctly allocated to the grant. Effect: Payroll was incorrectly allocated to the grant resulting in questioned costs. Identification of Repeat Findings: This is not a repeat finding. Recommendation: Management should implement a review process to ensure payroll is accurately allocated to the grant for reimbursement. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will implement an oversight process to prevent future payroll allocation errors. Questioned Costs: $4,774

Categories

Questioned Costs Allowable Costs / Cost Principles Internal Control / Segregation of Duties Cash Management

Other Findings in this Audit

  • 30147 2022-002
    Significant Deficiency
  • 30148 2022-002
    Significant Deficiency
  • 30149 2022-002
    Significant Deficiency
  • 30150 2022-002
    Significant Deficiency
  • 30151 2022-003
    Significant Deficiency
  • 30152 2022-003
    Significant Deficiency
  • 606590 2022-002
    Significant Deficiency
  • 606591 2022-002
    Significant Deficiency
  • 606592 2022-002
    Significant Deficiency
  • 606593 2022-003
    Significant Deficiency
  • 606594 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.994 Maternal and Child Health Services Block Grant to the States $1.04M
17.259 Wia Youth Activities $797,355
17.235 Senior Community Service Employment Program $314,039
84.282 Charter Schools $257,646
17.258 Wia Adult Program $214,232
93.665 Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 $44,657
84.425 Education Stabilization Fund $42,890
21.009 Volunteer Income Tax Assistance (vita) Matching Grant Program $31,357
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $22,208
17.805 Homeless Veterans Reintegration Project $7,000
14.218 Community Development Block Grants/entitlement Grants $242