Finding Text
Finding 2022-005 ? Allowable Costs (Significant Deficiency and Noncompliance) Information on the federal program: U.S. Department of Health and Human Services, Assistance Listing #93.959 Block Grants for Prevention and Treatment of Substance Abuse. Criteria: 2 CFR section 200.405 defines when a cost is allocable to multiple programs and establishes requirements for costs that are allocated to be done so uniformly across all programs. Allocation methods should be based on an appropriate measurement basis and used consistently. In addition, all allowable costs to be allocated must be properly documented and supported. Condition: During audit procedures, 21 non-payroll disbursements and 92 payroll disbursements were tested for allowable cost requirements. Of those tested, three exceptions were noted for costs that were allocated. Cause: For two payroll disbursements, the approved time sheet did not agree and therefore did not support the payroll allocation. The timesheet completed by the employee was not corrected and reapproved to properly reflect the actual time to be allocated to each program. For the non-payroll disbursement, a rent payment allocation did not follow the approved method based on square footage. A revised method was used to include only Montgomery County programs, however, the methodology was not documented and the percentages used did not follow the proportional allocation of the approved method.Effect: The Council was not in compliance with allowable cost requirements. Questioned Costs: None reported Recommendation: We recommend the Council strengthen procedures and documentation policies for costs that are to be allocated to ensure they are consistent and meet compliance requirements. Views of Responsible Officials: See Management?s View and Corrective Action Plan at the end of the report.