Finding Text
2024-003 Information on the Federal Program: Assistance Listing Number 93.224/93.527; Health Center Program Cluster; Department of Health and Human Services; Federal Award No. H80CS08221, H8FCS41317, and H8LCS50906 Criteria Or Specific Requirement: Activities Allowed/Unallowed and Cost Principles: As stated in 45 CFR §75.303, the non-federal entity (i.e., the Organization) must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations and terms and conditions of the federal award. Condition: The Organization duplicated the use of payroll costs for select employees that were allocated to the H80CS08221 award and subsequently to each of the H8FCS41317 and H8LCS50906 awards. Cause: The Organization did not consistently follow the internal control policies and procedures that it has in place to ensure allocation of payroll costs were not duplicated within the final submitted expenses for reimbursement. Effect or Potential Effect: There is a risk of misappropriation or charging unallowable expenditures to the program, resulting in actual and/or potential questioned costs. Questioned Costs: $35,322 Context: During testing of clients allocation to the different grant programs, some employees charged to supplemental funding were already included within the main base grant. Identification as a Repeat Finding, if Applicable: Not a repeat finding. Recommendation: We recommend an individual with knowledge of the federal program review expenditures charged to the federal program and ensure all transactions and allocations are tracked in better detail as/if future supplemental funding is received. These supplemental funds have come to an end so this issue is not expected to continue unless new funding is received. Views of Responsible Officials and Planned Corrective Actions: See separate auditee document for planned corrective action.