Finding Text
2023-005 - Activities Allowed or Unallowed; Allowable Costs/Cost Principles Information on the Federal Program: United States Department of Health and Human Services Assistance Listing Number: 93.391 Assistance Listing Name: Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crises Pass-through Awards under the Uniform Guidance Requirements: Criteria – CFR 200.403(g) states that for costs to be allowed under Federal awards, they must be adequately documented and there must be sufficient documentation. Condition – During our testing of allowable costs, we noted exceptions in the ability of management to support payroll incurred for the United Way of Greater Cleveland’s OHIZ federal program. The bi-weekly payroll amounts presented as costs incurred did not agree to the personnel files provided to support such costs. Cause – United Way does not have specific policies and procedures in place as to how monthly personnel costs across federal programs will be aggregated and charged to federal programs, including the matching of the costs to documentation within personnel files of the employees charged to the program. Effect – An ineffective control system related to the charging of cost to federal programs in order to ensure that proper rates based on information maintained in personnel files are used in the determination of costs incurred can lead to noncompliance with law and regulations and possible loss of funding for the related program. Questioned Costs – $3,945. Context – The Organization did not consistently comply with the documented procedures to ensure that all employee rates used in the calculation of costs incurred for the OHIZ program were agreed to/based upon the personnel records for certain employees. We sampled 10 items for the OHIZ program and found 5 exceptions resulting in $3,945 of questioned costs. Repeat Finding – This is a repeat finding. Recommendation – We recommend that the Organization develop a policy and procedures to ensure that all personnel costs used to calculate costs incurred under federal programs are reconciled back to personnel records to accurately reflect the actual costs incurred. Views of Responsible Officials and Planned Corrective Actions – The United Way of Greater Cleveland concurs with the finding and the recommendation. Our corrective action plan is described in Management’s Corrective Action plan included at page 63 of this reporting package.