Finding Text
2025-002 Allowable Costs/Cost Principles (repeat of finding 2024-004) Program Information Federal Organization U.S Department of Health and Human Services Assistance Listing Numbers 93.224 & 93.527 Health Center Program Cluster Award Numbers H80CS00513, H8FCS41684 Criteria [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Title 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Subpart E sets for the specific cost principles to be followed when expending federal funds. Condition The Organization claimed the same expenditure for reimbursement under multiple grants. The Organization did not maintain sufficient supporting records for all of the expenditures reimbursed with federal awards. This finding appears to be a systemic problem. Cause The Organization’s internal controls did not include proper review of transactions charged to federal programs to ensure that the goods or services received were supported by the appropriate documentation. In addition, expenditures were not properly tracked by grant, which allowed for the same costs to be charged to multiple awards. Effect The Organization may allocate unallowable costs to the federal awards. Questioned Costs $61,155 Context In a sample of forty transactions tested, three were found to be for expenditures that were not consistent with the allowable cost principles. We identified $36,855 of expenditures for which the Organization could not provide supporting documentation, and $24,300 of expenditures that had already been charged to another program or award. Recommendation We recommend the Organization implement a system to track and document all expenditures of federal awards in the financial management system and that supporting documentation for all federal expenditures, whether payroll or procurement transactions, be maintained. In addition, we recommend the Organization implement controls sufficient to monitor the system to ensure it is properly designed and effective. Views of responsible officials and planned corrective action Management is in agreement with this finding and will take corrective action as outlined below.