Finding Text
Health Center Program Cluster
Assistance Listing Nos. 93.224 and 93.527
U.S Department of Health and Human Services
Award No. 6 H80CS26514-04-00
Criteria or Specific Requirement – Activities Allowed or Unallowed and Allowable Costs/Cost Principles - 45 CFR 75.403(g) and Period of Performance - 45 CFR 75.309.
Condition – The Organization is required to maintain a system of internal control over compliance to ensure expenditures applied to federal awards are allowable, meet Federal cost principles, and fall within the period of performance.
Context - The Organization was subject to a limited scope review by the U.S. Department of Health and Human Services, Health Resources and Services Administration, Division of Financial Integrity. This review examined the Organization's compliance with certain requirements related to the Access Increases in Mental Health and Substance Abuse Services Supplemental Funding (AIMS), which covered a period of from September 1, 2017 through February 28, 2019, following an approved carryover request. The review identified certain expenditures that fell outside the period of performance or were not supported by appropriate documentation.
Questioned Costs - $55,112
Effect - The Organization was not in compliance with the requirements relating to activities allowed or unallowed, allowable costs/cost principles, and period of performance and were required to repay the questioned costs to the granting agency.
Cause - The Organization's policies and procedures did not allow for proper cut-off of expenditures as it applied to the AIMS grant. In addition, the Organization's policies and procedures did not prevent certain costs from being applied to the AIMS grant twice.
Identification as a repeat finding, if applicable - Not a repeat finding.
Recommendation - The Organization should revise its policies and procedures over related to grant expenditures cut-off and tracking to ensure compliant grants management.