Audit 53673

Finding 2022.003? Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting United States Department of Health and Human Services Family Planning Services Assistance Listing No.93.217 Federal Award Number: FPHPA006499 Federal Award Year: 2022 Type of Finding: Significant Deficiency Criteria: Per 2 CFR 200.303, the Organization must establish and maintain effective internal controls over federal awards that provide reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations and provisions of contracts or grant agreements that could have a material effect on each of its federal programs. Condition: During our testing, we noted the Organization requested reimbursements of $50,000 and determined the reasonableness of the amount being requested on a per patient basis rather than requesting funds based on actual expenditures incurred. Due to this, the expenditures were not reviewed for compliance with grant requirements. Cause: Control procedures did not function as designed and expenditures were not reviewed for compliance with grant requirements. Effect: Failure to review expenditures at a detailed level could result in unallowable costs or expenditures claimed. Questioned costs: None Context: Reimbursement request was not based on actual expenditures incurred. Repeat finding: No Recommendation: We recommend management enhance controls related to review of expenditures for compliance with allowable costs and activities unallowed requirements to ensure unallowed costs are not charged to the program. View of responsible officials: Management concurs with the finding. See corrective action plan.

Finding 2022.002?Activities Allowed or Unallowed, Allowable Costs/Cost Principles United States Department of Health and Human Services Family Planning Services Assistance Listing No.93.217 Federal Award Number: FPHPA006525 Federal Award Year: 2022 Type of Finding: Significant Deficiency Criteria: Per 2 CFR 200.303, the Organization must establish and maintain effective internal controls over federal awards that provide reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations and provisions of contracts or grant agreements that could have a material effect on each of its federal programs. Condition: As of December 31, 2022, the Organization provided health care services to 2,964 patients, however the reimbursement request was for 3,648 patients. The difference between the expected patients versus actual created an overpayment of federal funds totaling $83,701 at December 31, 2022. Management subsequently returned the funds to the granting agency. Cause: Control procedures did not function as designed and thus unallowable costs were submitted for reimbursement. While unallowable expenditures may have been initially charged to the grant, the Organization planned to return any unallowable costs subsequent to year-end. Effect: Failure to review expenditures at a detailed level could result in unallowable costs or expenditures claimed. Questioned costs: $83,701 Context: Reimbursement request was made using the expected number of patients that would be serviced, however the actual patients served totaled 2,964. Repeat finding: No Recommendation: We recommend management enhance controls related to review of expenditures for compliance with allowable costs and activities unallowed requirements to ensure unallowed costs are not charged to the program. View of responsible officials: Management concurs with the finding. See corrective action plan.

Finding 2022.003? Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Reporting United States Department of Health and Human Services Family Planning Services Assistance Listing No.93.217 Federal Award Number: FPHPA006499 Federal Award Year: 2022 Type of Finding: Significant Deficiency Criteria: Per 2 CFR 200.303, the Organization must establish and maintain effective internal controls over federal awards that provide reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations and provisions of contracts or grant agreements that could have a material effect on each of its federal programs. Condition: During our testing, we noted the Organization requested reimbursements of $50,000 and determined the reasonableness of the amount being requested on a per patient basis rather than requesting funds based on actual expenditures incurred. Due to this, the expenditures were not reviewed for compliance with grant requirements. Cause: Control procedures did not function as designed and expenditures were not reviewed for compliance with grant requirements. Effect: Failure to review expenditures at a detailed level could result in unallowable costs or expenditures claimed. Questioned costs: None Context: Reimbursement request was not based on actual expenditures incurred. Repeat finding: No Recommendation: We recommend management enhance controls related to review of expenditures for compliance with allowable costs and activities unallowed requirements to ensure unallowed costs are not charged to the program. View of responsible officials: Management concurs with the finding. See corrective action plan.

Finding 2022.002?Activities Allowed or Unallowed, Allowable Costs/Cost Principles United States Department of Health and Human Services Family Planning Services Assistance Listing No.93.217 Federal Award Number: FPHPA006525 Federal Award Year: 2022 Type of Finding: Significant Deficiency Criteria: Per 2 CFR 200.303, the Organization must establish and maintain effective internal controls over federal awards that provide reasonable assurance that it is managing federal awards in compliance with federal statutes, regulations and provisions of contracts or grant agreements that could have a material effect on each of its federal programs. Condition: As of December 31, 2022, the Organization provided health care services to 2,964 patients, however the reimbursement request was for 3,648 patients. The difference between the expected patients versus actual created an overpayment of federal funds totaling $83,701 at December 31, 2022. Management subsequently returned the funds to the granting agency. Cause: Control procedures did not function as designed and thus unallowable costs were submitted for reimbursement. While unallowable expenditures may have been initially charged to the grant, the Organization planned to return any unallowable costs subsequent to year-end. Effect: Failure to review expenditures at a detailed level could result in unallowable costs or expenditures claimed. Questioned costs: $83,701 Context: Reimbursement request was made using the expected number of patients that would be serviced, however the actual patients served totaled 2,964. Repeat finding: No Recommendation: We recommend management enhance controls related to review of expenditures for compliance with allowable costs and activities unallowed requirements to ensure unallowed costs are not charged to the program. View of responsible officials: Management concurs with the finding. See corrective action plan.