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The repeat finding concerned where administrative costs were charged
Kern’s accountability report says Behavioral Health and Recovery Services charged administrative and indirect costs as direct program costs under a block grant. The issue repeated from fiscal 2023–24, making it more significant than a first-time coding mistake.
The department reprogrammed its Allocap allocation system and the county marked that corrective action achieved for fiscal 2024–25. A reported fix should still be tested over a full cycle to prove it operates consistently.
| Control | Finding | Snapshot status |
|---|---|---|
| Cost classification | Administrative/indirect costs recorded as direct | Achieved after Allocap changes |
| Timing | Costs recorded when booked, not incurred | Payroll trained; nonpayroll pending |
A separate timing problem remained open
The audit also found payroll and nonpayroll costs were recorded based on when they were booked rather than when incurred. That distinction matters for whether a cost belongs in the grant period and financial report being charged.
The report says payroll training was completed while the nonpersonnel-cost correction remained pending. Treating the entire finding as closed would therefore overstate remediation.
The public needs a bridge from ledger code to grant claim
A strong follow-up would show sampled transactions before and after the change, the allocation basis used by Allocap and whether corrected entries changed claims submitted to the grantor. The summary does not quantify a questioned-cost total for these two findings.
The absence of a printed dollar amount is not proof that the control has no fiscal effect; it means this document does not establish one.
Method and limits
The newsroom separated classification from timing and compared the status assigned to each corrective action. It did not infer a dollar loss or claim the block grant was misspent.
The analysis is limited to the county’s December 2025 follow-up snapshot and does not establish later nonpayroll remediation.
Sources and further reading
Kern County Compliance and Accountability Report, December 31, 2025 ↗
Behavioral Health Clinic photograph and public-domain record ↗