Finding Text
Finding Number 2023-007: Costs Incurred Outside Period of Performance (Significant Deficiency over
Internal Control and Instances of Noncompliance – Period of Performance; Allowable Costs/Cost
Principles) FALN Number 16.575 U.S. Department of Justice, Office of Victims of Crime – Crime Victim Assistance, Award Number 94-3302014, Award Year 2022-2023
Criteria: 2023 Compliance Supplement and 2 CFR 200.403(h) stated that a non-federal entity may charge only
allowable costs incurred during the approved budget period of a federal award’s period of performance.
Condition/Context: As a result of our audit procedures to evaluate the summary schedule of prior audit findings,
we noted 1 sample of payroll expenditure of $6,561 incurred during the pay period 3/19/2023 – 4/1/2023;
however, the payroll costs incurred was charged to the program based on the pay date instead of the pay period
incurred.
Repeat Finding from Prior Year(s): Yes, Finding Number 2022-003
Cause and Effect: The Health System did not have proper controls in place to ensure only costs incurred in the
period of performance were charged to the program, which resulted in costs outside of period of performance
being charged to the program.
Questioned Cost: None
Recommendation: We recommend management review policies and procedures of the program to ensure the
costs incurred are appropriately charged based on the contracts’ performance periods.
Views of Responsible Officials and Planned Corrective Action:
Management agrees with the finding. The Health System will review, modify, and implement policies and
procedures over the program to ensure that costs incurred are appropriately charged based on the contracts’
performance periods.