Finding Text
Department of Health and Human Services Federal Financial Assistance Listing 93.958, All Awards Block Grants for Community Mental Health Services Activities Allowable or Unallowed, Allowable Costs/Cost Principles, and Period of Performance Material Weakness in Internal Control over Compliance and Other Noncompliance Criteria: CFR 200.430 set forth the compensation for personal services standards non-federal entities other than states must follow when operating federal programs. Condition: Washburn Center has an internal control process designed to approve and calculate the payroll expenses and allocation of time to the program, but they did not maintain support for a true up of actual time spent on the program compared to the budget. Cause: The controls in place did not operate as designed and failed to detect that support was not maintained to support actual time spent working on the program versus the budget amount. Effect: Nine employees? wages did not include support for actual time spent working on the program. Questioned Costs: No questioned costs over $25,000. Context: Nine employees, accounting for $199,840, were selected for testing for the program from a total of 28 total employees that accounted for $736,089. Repeat Finding from Prior Years: No Recommendation: We recommend the procedures related to payroll expenses be reviewed with applicable program employees to ensure the control process is properly followed and documentation is retained to support compliance with program requirements. Views of Responsible Officials: Management agrees with the finding.