Finding Text
2024-005 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. Criteria Or Specific Requirement: Period of Performance: As stated in 45 CFR 75.309, the non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity. Condition: The Organization supported the first draw of the H80CS08221 grant with a May 1, 2024 to April 30, 2025 grant period with payroll expenses that were incurred in April 2024, which falls outside the grant period. Cause: The Organization had April payroll costs, but the federal award for this period of time had already been fully drawn down. Effect or Potential Effect: There is a risk of misappropriation or charging expenditures to the incorrect grant period, resulting in actual and/or potential questioned costs. Questioned Costs: $212,000 Context: Management had April payroll costs that needed to be used as support, but the grant that covered this period in time was fully drawn on at this point. Identification as a Repeat Finding, if Applicable: Not a repeat finding. Recommendation: We recommend management improve tracking of what has been drawn down on each federal grant and how much remains on each individual grant period to ensure that expenses drawn against the grant are in the appropriate period. Views of Responsible Officials and Planned Corrective Actions: See separate auditee document for planned corrective action.