Finding Text
ALN 93.958 Block Grants for Community Mental Health Services
Pass-through Entity Identification Number GRK 213195
U. S. Department of Health and Human Services
Minnesota Department of Human Services
Finding 2022-002
Noncompliance - Allowable Costs/Cost Principles
Material Weakness
Criteria: OMB’s Uniform Guidance requires that charges to federal awards for personnel expenses must be based on records that accurately reflect the work performed, which must be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated and reasonably reflect the total activity for every employee (salary or hourly) who charges time to the federal grant.
Condition: The Organization’s system of time and effort reporting is not designed to meet the requirements of OMB Uniform Guidance. Timesheets were not maintained by salaried employees who charged time to the federal grant.
Cause: The Organization’s staff did not receive training specific to the Standards for Documentation of Personnel Expenses contained within OMB Uniform Guidance that would have enabled them to comply with this requirement.
Effect or Potential Effect: Employee costs charged to the federal grant cannot be compared to recorded hours for verification.
Questioned Costs: None
Repeat Finding: N/A
Recommendation: The Organization’s staff should obtain additional training on Uniform Guidance and federal grant management and create a system of time and effort reporting that will meet the Standards for Documentation of Personnel Expenses included in OMB Uniform Guidance.
Views of Responsible Officials: African American Child Wellness Institute, Inc. is in agreement with the audit finding.