Finding Text
HIV Emergency Relief Projects Grants – Assistance Listing No. 93.914
U.S. Department of Health and Human Services
Harris County Health Department
March 1, 2023 – February 29, 2024 and March 1, 2024 – February 28, 2025
HIV Care Formula Grants – Assistance Listing No. 93.917
U.S. Department of Health and Human Services
Houston Regional HIV/AIDS Resource Group, Inc.
April 1, 2023 – March 31, 2024 and April 1, 2024 – March 31, 2025
State HIV Services Grant Programs
Texas Department of State Health Services
Houston Regional HIV/AIDS Resource Group, Inc.
September 1, 2022 – August 31, 2023, September 1, 2023 – August 31, 2024, and
April 1, 2023 – August 31, 2023
Criteria or specific requirement – Allowable Costs and Cost Principles (45 CFR 75.430) and TxGMS
Condition - The Organization did not comply with federal and state cost principles requirements.
Cause - The cost allocation plan distributed costs across multiple federal and state programs using a budgeted full time equivalent (FTE) basis without subsequent reconciliation to time and effort records.
Effect or potential effect - Amounts charged to Assistance Listing Numbers 93.914, 93.917, and the Texas State HIV Service Grants were not supported by complete time and effort records.
Questioned costs – ALN 93.914 HIV Emergency Relief Projects Grants - $1,781,943; ALN 93.917 HIV Care Formula Grants - $91,994; State HIV Services Grant Programs - $222,122.
Context – Expenditures from each major program were tested.
• HIV Emergency Relief Project Grants - Indirect costs that were allocated across multiple programs were noted to be based on budgeted FTE data rather than underlying time and effort reports. These indirect costs identified as errors and represent questioned costs of $1,781,943.
• HIV Care Formula Grants - Indirect costs that were allocated across multiple programs were noted to be based on budgeted FTE data rather than underlying time and effort reports. These indirect costs identified as errors and represent questioned costs of $91,994.
• State HIV Services Grant Programs - Indirect costs that were allocated across multiple programs were noted to be based on budgeted FTE data rather than underlying time and effort reports. These indirect costs identified as errors and represent questioned costs of $222,122.
For the indirect expenditures isolated and noted to be errors, the Organization’s cost allocation plan utilized budgeted full time equivalents (FTE) as a basis for that allocation of cost. As a result the Organization was unable to demonstrate compliance with federal cost principles requirements.
Identification as a repeat finding, if applicable – No, this is not a repeat finding.
Recommendation – The Organization should develop a process to support the time and effort used as a basis of allocation for programmatic expenditures.