Finding Text
2023-001: OVERCHARGE OF FICA EXPENSES (repeat comment)
Type: Considered a significant deficiency in internal control over compliance/immaterial noncompliance
Program: ALN 93.958 Block Grants for Community Mental Health Services (Intensive Crisis Stabilization Services Expansion Grant)
ALN 93.959 Block Grants for Prevention and Treatment of Substance Abuse (SUD Block Grant)
Criteria: As detailed by 2 CFR 200.309, “A non-Federal CMHSP may charge to the Federal award only allowable costs incurred during the period of performance and any costs incurred before the Federal awarding agency or pass-through CMHSP made the Federal award that were authorized by the Federal awarding agency or pass-through CMHSP.”.
Condition: During testing, it was noted that FICA costs were overcharged for ALN 93.958 by $6,663 and for ALN 93.959 by $458.
Cause/Effect: This condition appears to be the result of an incorrect allocation for fringe for one employee.
Questioned Cost: Immaterial
Recommendation: We recommend that the CMHSP review its methods for determining allocations of fringe benefits to the grants.
Management’s Resp: Management is in agreement with this recommendation.