Finding Text
2023-003 Internal Controls and Compliance over Allowable Costs (Significant Deficiency)
U.S. Department of Health and Human Services
93.939 HIV Prevention Activities - Non-Governmental Organization Based
2022-2023 and 2023-2024 Funding
Criteria: Under 2 CFR Section 200.303(a), non‐federal entities must establish and maintain effective internal controls to provide reasonable assurance that the entity is managing the federal awards in compliance with statues, regulations, and the terms and conditions of the award. Additionally, grantees are required to have a detailed breakout of these costs along with any supporting documents for those expenses for auditing and oversight. Title 2 CFR 200.302 requires the financial management system of each non-Federal entity provide records that identify adequately the source and application of funds for federally-funded activities.
Condition: We noted instances of the allocation rates being used to calculate amount of payroll costs to charge to grants did not agree to the hours incurred per approved timesheets.
SECTION III – FEDERAL AWARD FINDINGS AND QUESTIONED COSTS (Continued)
Cause: The personnel costs charged to the grant were not reconciled to timesheets correctly by the accounting personnel.
Effect: AIH requested in error reimbursement for unallowable payroll costs.
Questioned Costs: $42
Perspective: Allocation errors were noted for 2 employees in 3 payroll periods tested.
Repeat Finding: No
Auditor’s Recommendation: Review process should be reevaluated and employees retrained to ensure that only actual hours worked from timesheets are charged to grant.
Views of Responsible Officials: We concur with the recommendation, please see Corrective Action Plan.