Finding Text
2024-005 Period of Performance
Program Information
Federal Organization U.S Department of Health and Human Services
Assistance Listing
Numbers
93.224 & 93.527 Health Center Program Cluster
Award Numbers H80CS00513, H8FCS41684, H8GC48547, H8LCS51197
Criteria [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness
Title 2 CFR 200.403(h) requires that costs be incurred in the approved budget period
for the applicable awards and Title 2 CFR 200.403(e) requires that those costs be
determined according to generally accepted accounting principles (GAAP).
Condition The Organization’s federal expenditures includes costs for goods and/or services
outside of the approved budget periods for the awards.
Cause The Organization’s internal controls over compliance did not include consideration of
when the goods were received or services were performed compared to the budget
periods for the awards. Lack of understanding of GAAP and the requirements of
accrual basis accounting allowed expenditures outside of the applicable budget
periods to be approved and claimed as current federal expenditures based solely on
management’s decision to pay for the expenditure in the current year.
Effect The Organization may allocate unallowable costs to the federal awards.
Questioned Costs $321,877 (of which $283,128 was previously reported in finding 2024-004 above)
Context In a sample of sixty invoices, we noted eight included expenditures for goods or
services that were not provided in the current budget period. $283,129 of expenditures
charged to the program were for goods or services related to future budget periods.
$38,748 of expenditures charged to the program were for goods or services related to
previous budget periods.
Recommendation We recommend management personnel authorized to approve expenditures of federal
awards be limited to those who have a basic understanding of GAAP and the
relationship between the accrual basis of accounting and the period of performance
requirements.
Views of responsible
officials and planned
corrective action
Management is in agreement with this finding and will take corrective action as
outlined below.