Finding Text
2022-004 ? Activities Allowed or Unallowed; Allowable Cost/Cost PrinciplesIdentification of the Federal Program:Governmental Department/Agency:Department of Health and Human Services (HHS),Centers for Medicare & Medicaid ServicesAssistance Listing Number: 93.650Award Number: 1P1CMS331584-05-00Award Year: 5/01/2021 ? 12/31/2022Criteria ? The Code of Federal Regulations 200.403(g) states that for costs to be allowed under Federal awards, they must be adequately documented and there must be sufficient documentation.Condition ? Through testing 12 expense transactions for the allowable costs and period of performance compliance requirements, we noted an expense that was an exception. The expense related to an invoice that was expensed twice, once in July 2021 and a second time in September 2021. The Organization did not adequately reverse this transaction, which resulted in excess costs submitted for reimbursement in September 2021.Cause ? Policies and procedures were not adhered to in certain instances to ensure that costs submitted for reimbursement through the Federal grant were submitted at the correct amounts.Effect ? An ineffective control system related to the charging of costs to federal programs failed to ensure that the amounts charged are for services in the correct amount.Questioned Costs - $144Context ? We sampled 12 items for the AHC program and found 1 exception resulting in an over reimbursement of $144. This is a condition identified per review of the Organization?s compliance with specified requirements using a statistically valid sample.Repeat Finding ? This is not a repeat finding.Recommendation ? We recommend that the Organization continues to review and improve its internal control over allowed and allowable costs to ensure its policies and procedures follows the compliance requirements of Federal regulations.Views of Responsible Officials and Planned Corrective Actions ? The Organization concurs with the finding and the recommendation. The Organization?s corrective action plan is described in Management?s Corrective Action Plan included at page 58 of this reporting package.