Finding 622513 (2022-001)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2022-10-27
Audit: 40000
Auditor: Biggskofford PC

AI Summary

  • Core Issue: The Organization lacks adequate internal controls for accurately allocating payroll costs to various programs.
  • Impacted Requirements: Compliance with CCBHC project guidelines and Uniform Guidance is at risk due to insufficient tracking of employee time and effort.
  • Recommended Follow-up: Implement a strict policy requiring employees to accurately track their time spent on each program to ensure proper cost allocation.

Finding Text

2022-001 "CCBHC Implementation Project - CFDA No. 93.829; Grant No. 1H79SM083287-01 Grant Period February 15, 2021 - February 14, 2023" Condition: Material Weakness - The Organization does not have sufficient internal controls to ensure proper allocations of payroll related to the various programs. Criteria: The CCHBC Implementation project award and Uniform Guidance requires recipients to maintain a standard of internal controls to ensure that the proper allocation of payroll related costs are based on actual time and effort toward the grant project. Cause: During the review of payroll costs, we were unable to identify all of the time and effort coded to the programs. Per our discussion with management, it was determined that the Organization does have a policy in place, however, the policy is not enforced and therefore there are some program related costs that are estimated each month. Effect: Program compliance requirements are at risk of not being met. Recommendation: Southeast Health Group should maintain an environment in which employees are required to track their time based on the specific programs in order to ensure that the time and effort costs are trackable for all employees that work on the projects.

Categories

Allowable Costs / Cost Principles Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 46071 2022-001
    Material Weakness
  • 46072 2022-002
    Significant Deficiency
  • 622514 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $862,024
93.498 Health Resources and Services Administration (hrsa) $793,058
10.766 Community Facilities Loans and Grants (cluster) $12,172
93.991 Cdc Block Grant- A22phb Phhs Block Grant Osp $8,900
14.252 Capacity Building for Community Development and Affordable Housing Grants $8,394
10.525 Nifa Rural Mental Health $8,029
93.069 Hhs Centers for Disease Control and Prevention $7,500