Audit of Costs Claimed by West Virginia Advocates, Incorporated, Charleston, West Virginia, October 1, 1998 through March 31, 2001

EXECUTIVE SUMMARY:

From October 1, 1998 through March 31, 2001, West Virginia Advocates, Incorporated  (WVA) received $1,383,679 in Federal funds.  The Administration for Children and Families provided $695,238 for the Protection and Advocacy for Persons with Developmental Disabilities (PADD) program and the Substance Abuse and Mental Health Services Administration provided $688,441 for the Protection and Advocacy for Individuals with Mental Illness (PAIMI) program.  We found that WVA charged excessive indirect costs of $47,196 to the PADD and PAIMI programs.  The excessive indirect costs claimed were attributable to WVA applying an incorrect rate and changing its allocation method without approval.  The WVA had no policies to assure that credit card purchases were program related, not of a personal nature, allowable, allocable and accounted for properly.  The WVA's travel policies did not require advance approval for all travel or that travel expense statements be submitted in a timely manner after the completion of travel, to ensure that travel expenses meet the test of reasonableness, necessity, and allowability.  Furthermore, WVA did not have adequate policies in place to ensure that time and attendance was correctly maintained and that programs were being charged for salaries and wages in accordance with regulations.  We recommended that WVA refund $22,858 to the PADD program and $24,338 to the PAIMI program; and establish adequate written policies and procedures relating to credit card charges, travel, and time and attendance.