Audit 49538

FINDING #2022-001 U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Passed through Indian Health Services Urban Indian Health Services ? 4-in-1 Programs ? CFDA #93.193 Condition: Costs benefitting other programs (in addition to the 4-in-1 Program) were not properly allocated to those benefitted programs, resulting in excess charges to the 4-in-1 Program. Criteria: 2 CFR Part 200, Subpart E ? Cost Principles at 200.405 ? Allocable Costs (c) states, in part, that costs allocable to a particular Federal program may not be charged to other Federal programs ?? to overcome fund deficiencies ? or for other reasons.? However, shifting costs that are allowable under two or more awards is permissible when done in accordance with applicable states, regulations, or award conditions. Cause: The end of the approved budget period (3/31/22) was approaching and the Organization had unspent funds remaining in the 4-in-1 Program. Effect: Costs benefitting other programs (in addition to the 4-in-1 Program) were not properly allocated to those benefitted programs, resulting in excess charges to the 4-in-1 Program. Questioned Costs: $19,323.11 Context: Out of a randomly selected sample of 25 items with a monetary value of $40,814, we noted 8 items where the supporting documentation indicated that Federal award programs, in addition to the 4-in-1 Program were benefitted from the cost incurred; however, the 4-in-1 Program was disproportionately charged for these costs. Recommendation: We recommend that the Organization strengthen its procedures to assure that costs are properly allocated to the programs receiving the benefit of the cost. In those cases where it is deemed appropriate for the Organization to shift costs from one grant to another (2 CFR 200.405 (c) and (d)), the supporting documentation should support the change.

FINDING #2022-001 U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Passed through Indian Health Services Urban Indian Health Services ? 4-in-1 Programs ? CFDA #93.193 Condition: Costs benefitting other programs (in addition to the 4-in-1 Program) were not properly allocated to those benefitted programs, resulting in excess charges to the 4-in-1 Program. Criteria: 2 CFR Part 200, Subpart E ? Cost Principles at 200.405 ? Allocable Costs (c) states, in part, that costs allocable to a particular Federal program may not be charged to other Federal programs ?? to overcome fund deficiencies ? or for other reasons.? However, shifting costs that are allowable under two or more awards is permissible when done in accordance with applicable states, regulations, or award conditions. Cause: The end of the approved budget period (3/31/22) was approaching and the Organization had unspent funds remaining in the 4-in-1 Program. Effect: Costs benefitting other programs (in addition to the 4-in-1 Program) were not properly allocated to those benefitted programs, resulting in excess charges to the 4-in-1 Program. Questioned Costs: $19,323.11 Context: Out of a randomly selected sample of 25 items with a monetary value of $40,814, we noted 8 items where the supporting documentation indicated that Federal award programs, in addition to the 4-in-1 Program were benefitted from the cost incurred; however, the 4-in-1 Program was disproportionately charged for these costs. Recommendation: We recommend that the Organization strengthen its procedures to assure that costs are properly allocated to the programs receiving the benefit of the cost. In those cases where it is deemed appropriate for the Organization to shift costs from one grant to another (2 CFR 200.405 (c) and (d)), the supporting documentation should support the change.