Finding 2023-002
material weaknessrepeat finding
- Program
- SECTION 223 DEMONSTRATION PROGRAMS TO IMPROVE COMMUNITY MENTAL HEALTH SERVICES (93.829)
- Compliance requirement
- Activities allowed or unallowed; Allowable costs/cost principles
- Repeat
- Chain of at least 2 audit years; prior finding 2022-001
- FAC record
- FY2023 audit on fac.gov
Finding text from the filing
CCBHC Implementation Project - Assistance Listing No. 93.829; Grant No. 1H79SM083287-01, Grant Period February 15, 2021 - February 14, 2023
Condition: Material Weakness - The Organization does not have sufficient internal controls to ensure proper allocations of payroll related to the various programs.
Criteria: The grant award and Uniform Guidance requires recipients to maintain a standard of internal controls to ensure that the proper allocation of payroll related costs are based on actual time and effort toward the grant project.
Repeat finding: This finding is a repeat finding from the prior audit period. Prior audit finding number is 2022-001.
Cause: Employee allocations submitted for reimbursement were not reviewed against the completed time cards for each payroll run, and there are payroll costs allocated to grants that are estimated each month.
Effect: Program compliance requirements are at risk of not being met.
Recommendation: The Organization should maintain an environment in which supervisors and grant managers review the allocations of time spent on specific projects during each payroll cycle, that they document their approval, and the appropriate amounts are submitted for reimbursement.
View of Responsible Official and Planned Corrective Action: Management agrees with the finding. See corrective action plan.