Finding Text
2024-007 Information on the Federal Program: Assistance Listing Number 93.526; Grants for Capital Development in Health Centers; Department of Health and Human Services; Federal Award No. C8ECS44299 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: It was communicated by Health Resources and Services Administration (HRSA) who administers and monitors grant funding programs that there were costs submitted for reimbursement that were not allowable. Cause: The Organization started the approved capital project for this grant program and there were unforeseen asbestos removal costs that were required to be removed before start of work that were not included in the approved budget. Effect or Potential Effect: Questioned costs and noncompliance with the grant program. Questioned Costs: $258,558 Context: There was a total of $644,584 in grant funding awarded for construction costs under an approved construction plan where costs not approved were drawn on the grant funding. Identification as a Repeat Finding, if Applicable: Not a repeat finding Recommendation: Ensure that program requirements are fully understood and budgets approved are being followed. Views of Responsible Officials and Planned Corrective Actions: See separate auditee document for planned corrective action.