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Finding 2024.004: Activities Allowed or Unallowed - Significant Deficiency Grantor: U.S. Department of Health and Human Services Federal Program Names: Health Center Program Cluster, COVID-19 Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care), Grants for New and Expanded Services under the Health Center Program, COVID-19 Grants for New and Expanded Services under the Health Center Program. Federal Assistance Listing Numbers: 93.224 and 93.527 Federal Award Identification Number and Year: H80CS00132-2022 and 2023 Criteria According to 2 CFR, Part 200.430(i)(1) charges to Federal awards for salaries and wages must be based on records that accurately reflect the actual work performed, which must, among other things: (i) be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) be incorporated into the official records of the non-Federal entity; (iii) and reasonably reflect the total activity for which the employee is compensated by the non-Federal entity. Condition Charges to Federal Awards for salaries and wages were not supported by properly approved timesheets that agreed to payroll registers. Cause The Center's internal controls over payroll were not consistently followed. Effect or Potential Effect Unallowable expenses could be charged to the grant. Questioned Costs None. Context Out of the 25 payroll transactions selected for testing, we noted one instance in which the timesheet did not agree to the payroll register. Identification as a Repeat Finding Yes - Finding 2023.002. Recommendation We recommend that the Organization consistently enforce its internal controls over payroll to ensure that timesheets are reviewed and approved by the appropriate supervisor and ensure that they agree to the payroll register. Views of Responsible Officials and Planned Corrective Actions Management agrees with the audit finding and will implement additional controls to ensure payroll expenditures are being formally reviewed and approved.