Finding Text
Finding No.: 2019-013
Federal Agency: U.S. Department of Health and Human Services
CFDA Program: 93.268 Immunization Cooperative Agreements
Award Numbers: 6 NH23IP000736-05-01 and 5NH231P000736-05-00
Area: Allowable Costs/Cost Principles
Questioned Costs: $22,500
Criteria:
In accordance with 2 CFR Part 200, Subpart E, cost must be necessary and reasonable for the performance of the federal award and be allocable thereto. Further costs must conform to any limitations or exclusions and be adequately documented.
Condition:
Of thirty-three nonpayroll expenditures tested, aggregating $23,528 of a total population of $243,080, the following deficiencies were noted:
1. For twenty-seven (or 82%), check payments were not provided. In addition, for Document Numbers 1436562 and 1436565, funds availability certifications were not evident and payment request memorandums did not agree to the invoice amounts.
Finding No.: 2019-013, continued
Federal Agency: U.S. Department of Health and Human Services
CFDA Program: 93.268 Immunization Cooperative Agreements
Award Numbers: 6 NH23IP000736-05-01 and 5NH231P000736-05-00
Area: Allowable Costs/Cost Principles
Questioned Costs: $22,500
Condition, continued:
2. For three (or 9%), payment vouchers were not signed to evidence approval.
3. For one (or 3%), the P&S Director’s approval of the purchase order was not evident. No questioned costs is presented as the amount is questioned at Condition 1.
Finding No.: 2019-013, continued
Federal Agency: U.S. Department of Health and Human Services
CFDA Program: 93.268 Immunization Cooperative Agreements
Award Numbers: 6 NH23IP000736-05-01 and 5NH231P000736-05-00
Area: Allowable Costs/Cost Principles
Questioned Costs: $22,500
Condition, continued:
Of thirty-two payroll expenditures tested, aggregating $26,611 of a total population of $535,817, the following deficiencies were noted:
4. For one (or 3%), approval of the Request for Personnel Action form by the Director of Public Health Services, Chief Financial Officer, Director of Human Resources and Chief Executive Officer were not evident. In addition, the payroll register was not provided to substantiate the employee’s payroll cost.
5. For one (or 3%), transaction pertains to personnel insurance costs, for which the corresponding supporting documents were not provided.
6. For five (or 15%), transactions pertain to payroll costs journal entries, for which the corresponding checks/ACH payments were not provided.
Finding No.: 2019-013, continued
Federal Agency: U.S. Department of Health and Human Services
CFDA Program: 93.268 Immunization Cooperative Agreements
Award Numbers: 6 NH23IP000736-05-01 and 5NH231P000736-05-00
Area: Allowable Costs/Cost Principles
Questioned Costs: $22,500
Cause:
CHCC did not enforce recordkeeping controls in accordance with applicable allowable costs/cost principles requirements.
Effect:
CHCC is in noncompliance with allowable costs/cost principles requirements and questioned costs of $22,500 result as the projected questioned costs exceed the $25,000 threshold.
Identification as a Repeat Finding: Finding No. 2018-020.
Recommendation:
The responsible personnel should establish a recordkeeping system whereby underlying support for each transaction is processed timely and filed accordingly for easy retrieval to substantiate costs. The responsible personnel should not approve program expenditures unless underlying support is provided for review.
Views of Responsible Officials:
CHCC’s Corrective Action Plan provides a detailed rationale for disagreement with the finding described in Conditions 1 and 2, and states agreement with Conditions 3 to 6; however, disagrees with the questioned costs.
Finding No.: 2019-013, continued
Federal Agency: U.S. Department of Health and Human Services
CFDA Program: 93.268 Immunization Cooperative Agreements
Award Numbers: 6 NH23IP000736-05-01 and 5NH231P000736-05-00
Area: Allowable Costs/Cost Principles
Questioned Costs: $22,500
Auditor Response:
Condition 1 - Cancelled checks provided comprised of numerous invoice payments for which corresponding check vouchers were not provided; thus, CHCC was not able to substantiate whether cancelled checks provided pertain to transactions being tested.
Condition 2 - Batch headers evidencing approvals were not provided.
Conditions 3 through 6 - Questioned costs are warranted given transactions tested were not supported by adequate documentations.
In addition, initial draft reports were provided to CHCC on 09/06/24 and 09/24/24. It was also agreed during the 09/06/24 and 10/04/24 meetings for CHCC to provide corresponding underlying accounting records to resolve the finding; however, no documentations were provided within the agreed timeline. Accordingly, finding is sustained.