Finding 1097235 (2024-003)

Assistance Listing Program Title Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Program Number 21.027 Federal Award ID Number and Year SLFRP1965 Federal Agency U.S. Department of the Treasury Pass-Through Entity Nebraska Department of Health and Human Services Significant Deficiency in Internal Control Over Allowable Costs/Cost Principles; Noncompliance with Allowable Costs/Cost Principles Criteria The subaward from the Nebraska Department of Health and Human Services states that indirect costs shall not be paid as part of the grant. Condition The Health Department requested reimbursement for indirect costs charged to the grant. Repeat Finding No. Cause The Health Department did not have a system of internal controls in place to identify grants which do not allow the reimbursement of indirect costs. Effect The Health Department may be reimbursed for unallowable costs. Questioned Costs Known: $11,909 Statistical Sample No. Context The Health Department routinely administers grants which allow the reimbursement of indirect costs. This subaward from the Nebraska Department of Health and Human Services is the only award administered by the Health Department that does not allow for the reimbursement of indirect costs. This unique circumstance was overlooked by the Health Department staff when requesting reimbursement. Recommendation The auditor recommends that the Health Department establish a system of internal controls to identify grants which do not allow the reimbursement of indirect costs. Views of Responsible Officials See Corrective Action Plan, below.