Finding 612976 (2022-001)

Significant Deficiency
Requirement
A
Questioned Costs
$1
Year
2022
Accepted
2023-06-13

AI Summary

  • Core Issue: There was a significant deficiency in internal controls regarding the Community Grant, leading to unauthorized charges of $199,598.
  • Impacted Requirements: Costs charged did not comply with 2 CFR 200.402, which outlines allowable costs for federal awards.
  • Recommended Follow-Up: Review all grant agreements to understand allowable costs and adjust internal controls to prevent future non-compliance.

Finding Text

2022-001: Considered a significant deficiency in internal control/immaterial non-compliance Program: ALN 93.959 Block Grants for Prevention and Treatment of Substance Abuse (Community Grant) Criteria: As detailed by 2 CFR 200.402, the total cost of a Federal award is the sum of the allowable direct and allocable indirect costs less any applicable credits. Condition: During testing of amounts charged to the grants it was noted that provider stabilization payments were charged to Community Grant but were not authorized by the grant. Cause/Effect: This condition appears to be the result of a misunderstanding of costs allowed under this grant. These costs were not in compliance with 2 CFR 200.402. Questioned Cost: $199,598. Recommendation: We recommend that the Entity review all grant agreements to gain a thorough understanding of allowable costs and then establish/modify internal controls to assure that only allowable costs are charged to the grant. View of Responsible Official: Management is in agreement with this recommendation

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

  • 36534 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.788 Opioid Str $1.03M
93.958 Block Grants for Community Mental Health Services $241,802
93.959 Block Grants for Prevention and Treatment of Substance Abuse $144,456