Finding 628492 (2022-005)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-08-29

AI Summary

  • Core Issue: Time charges to federal awards are based on estimates without proper review, risking inaccuracies.
  • Impacted Requirements: Internal controls for time and effort records are not being followed, potentially leading to improper charges.
  • Recommended Follow-Up: Management should ensure regular reviews of time charges by the Finance and Grants Manager, with documentation of any adjustments made.

Finding Text

U.S. Department of Health and Human Services, Family Planning Services, ALN 93.217; Prevention and Health Promotion Administration--Refugee and Entrant Assistance State/Replacement Designee Administered Programs, ALN 93.566 Criteria Under the Uniform Guidance, time and effort records must be supported by a system of internal controls which provides reasonable assurance that charges are accurate, allowable and allocable and incorporated in the official records. Condition and Context Time charges to federal awards are based upon estimates established by CCI through the grant budgeting process. There is no evidence that salaries charged to the federal programs were subsequently reviewed by program managers for propriety and adjusted as deemed necessary. Cause Significant turnover within the organization within the Finance and Grants Departments. Effect Federal awards may be overcharged or undercharged. Questioned Cost Unknown. Repeat Finding No. Recommendation We recommend that management adhere to its policy requiring the Finance and Grants Manager to meet after each pay period to review the time and labor charges to federal awards, noting any changes that need to be made. We also recommend that this meeting, review and any amendments made be documented and evidenced by signatures or initials of the employees involved in the process and the date the meeting occurred. Views of Responsible Officials and Planned Corrective Action See corrective action plan.

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 52050 2022-005
    Material Weakness Repeat
  • 52051 2022-007
    Material Weakness Repeat
  • 52052 2022-005
    Material Weakness Repeat
  • 52053 2022-006
    Material Weakness
  • 628493 2022-007
    Material Weakness Repeat
  • 628494 2022-005
    Material Weakness Repeat
  • 628495 2022-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $8.59M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $4.43M
93.566 Refugee and Entrant Assistance_state Administered Programs $2.42M
93.217 Family Planning_services $2.26M
93.498 Provider Relief Fund $29,251