Finding Text
Finding 2022-002: Cost Allocation Plan Information on the Federal Program: Assistance Listing Number 93.778. Medical Assistance Program. Award Number: FP076-07. Compliance Requirement: Allowable Costs Criteria: Costs should be allocated in the accounting system among grants according to 2 CFR, Part 200. Condition: During the current year, the allocation plan was not reviewed and adjusted to actual per CFR 200. Cause: Management?s cost allocation plan should be documented as to the methodology supporting the plan, including how percentages for each funding stream are determined and the plan should be documented when circumstances arise that require the plan to be changed. Effect: Expenses could be improperly reimbursed by the grant program and the grantor could require repayment.Recommendation: Management should compare budgeted revenues to actual revenues throughout the fiscal year to determine if the cost allocation percentages require updating and document and retain the plan changes.