COUNTY OF HUNTINGDON

Finding 2022-002 – Allowable Costs/Cost Principles U.S. Department of Health and Human Services – Passed through DHS – Title IV-E Foster Care (ALN 93.658) Condition: During our audit, it was noted that there was no process in place to ensure that payroll costs allocated to the Title IV-E Foster Care program was in accordance with the Uniform Guidance. During our testing, we noted that payroll was allocated based on a semi-annual time study. The time study was used to allocate the payroll costs for the year, without determining if the semi-annual periods were representative of the time worked by employees for the remainder of the year. Criteria: The Code of Federal Regulations (2 CFR 200.430) requires that payroll costs be allocated in an equitable manner. Cause: The County Children’s Services department does not have adequate procedures in place to verify that payroll costs are allocated in an equitable manner in accordance with the Uniform Guidance. Effect: The County Children’s Services department may not be allocating payroll costs equitably. Questioned Costs: The amount of reimbursable questioned costs, if any, is not able to be determined. Recommendation: We recommend that the County Children’s Services department establish procedures that provide a system and related documentation to support an equitable allocation of payroll costs. Views of Responsible Official: Management agrees with the finding. See Corrective Action Plan.

Finding 2022-002: Allowable Costs/Cost Principles U.S. Department of Health and Human Services- Passed through DHS- Tit le IV-E Foster Care (ALN 93.658) Condition: During our audit, it was noted that there was no process in place to ensure that payroll costs were alloca ted among grant funded programs in accordance with the Uniform Guidance. During our testing, we noted that payroll was allocated based on a semi-annual time study. The time study wa s used to allocate the payroll costs for the year, without determining if the semiOannual periods were representative of the time worked by employees for the remainder of the year. Criteria: The Code of Federal Regulations (2 CFR 200.430) requires that payroll costs be allocated in an equitable manner. Cause: The County Children's Services department does not have adequate procedures in place to verify that payroll costs are allocated in an equitable manner in accordance with the Uniform Guidance. Effect: The County Children's Services department may not be allocating payroll costs equitably. Questioned Costs: The amount of questioned cost, if any, is not able to be determined. Recommendation: We recommend that the County Children's Services department establish procedures that provide a system and related documentation to support an equitable allocation of payroll costs. Management Response: The Department reviews the staff time study categories every six months (Staff time studies are conducted in May and November). The Department will now review the staff time study categories every three months to determine if the staff percentages are accurate. This three-month review will be added to the time study policy and will include discussions with each supervisor to confirm the staff categories. This confirmation will be documented on the staff category listing. Anticipated Completion Date: Immediate

GSA_MIGRATION

GSA_MIGRATION

2017-003

GSA_MIGRATION

GSA_MIGRATION

2016-003

GSA_MIGRATION

GSA_MIGRATION

2015-004