YORK COUNTY CEREBRAL PALSY HOME, INC., D/B/A MARGARET E. MOUL HOMENon-Profit

CriteriaManagement is responsible for establishing and maintaining internal controls that reviews all costs charged to the federal program as an allowable cost in accordance with terms of the grant and report to respective funding agencies the total of costs supported by financial records.ConditionAs a result of our testing, we found that for the fiscal year ending June 30, 2021, the Home did not adequately address the application of the same costs being charged to multiple grants. During the year ended June 30, 2021, we noted that the Home did not timely address the application of payroll costs to multiple funding sources before submitting financial report.EffectThere is the potential that management may report the same cost/expenditure to multiple grants without identifying the duplicate reporting, which could result in questioned costs and funds that need to be returned to the funding agency.CauseThe Home did not have a procedure in place to document the review of grant funds to ensure proper allocation among various funding resources and report the accurate usage of funds with respective funding agencies.RecommendationManagement should implement a procedure and tracking mechanism that identifies all funding sources available and specify which costs are allocated to the funds available. The tracking should be reviewed and approved by a member of management before reporting is completed and submitted to funding agencies.Questioned CostsNone.