Audit 388774

Federal agency: U.S. Department of Agriculture Federal program title: Special Supplemental Nutrition Program for Women, Infants, and Children Assistance Listing Number: 10.557 Pass-Through Agency: Iowa Department of Public Health, Division of Family and Community Health Pass-Through Numbers: 5883A031 and 5884AO31 Award Period: October 1, 2017 through September 30, 2028 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award contains various requirements for questioned costs under federal awards. §200.516 requires the auditor to provide information on known or likely questioned costs greater than $25,000 for a type of compliance requirement for a major program. Condition and Context: During our testing, we noted $97,969 was attributed to the federal award program and was determined to not be an allowable cost under the federal award program. Questioned Costs: $97,969 Cause: The Medical Center was unaware at the time of recognition that the costs were not allowable under the federal award program. Effect: The Medical Center is not in compliance with the requirements of 2 CFR Part 200 §200.516. Recommendation: We recommend the Medical Center review the WIC expenses monthly to ensure during month end close process that all costs are allowable and deemed to be reimbursable as a part of the federal award program. Views of responsible officials: There is no disagreement with the audit finding. Management will file an amendment to payback the questioned costs to the federal program.