Finding Text
Grant Program/Award – U.S. Department of Health and Human Services, ALN: 93.323, COVID-19 -Epidemiology and Laboratory Capacity for Infectious Diseases (ELC)
Prior Reference Number – 2021-002
Compliance Requirements – Activities Allowed or Unallowed and Allowable Costs/Cost Principles
Condition – In fiscal year 2021, our expense testing revealed that 45 of 60 expenditures tested, all related to salaries and benefits expenditures, showed no evidence of time and effort to support how the salaries and benefits allocation was determined, with 6 of the same 45 expenditures lacking evidence of payroll documentation for the amounts charged to the grant. Further, 47 of 60 expenses tested showed no evidence of review by a person knowledgeable of the grant. As the finding was not identified until fiscal year 2022, the condition was present in fiscal year 2022.
Criteria – The County’s internal controls should be designed to ensure proper recordkeeping of expenses charged to the federal program and review of the documentation that supports expenses.
Cause – The County experienced turnover during and after the fiscal year.
Questioned Costs – None for fiscal year 2022. Known questioned costs in fiscal year 2021 - $ 4,513. Likely questioned costs in fiscal year 2021 - $ 23,792.
Effect – Unallowed costs could be charged to the federal program.
Recommendation – We recommend that the County implement controls and processes that ensure that expenditures charged to the program are reviewed and documented to ensure costs are allowable and properly supported.