Finding Text
Allowable Activities and Costs Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Center Cluster - Behavioral Health Expansion Grant Assistance Listing Number: 93.224 and 93.527 Federal Award Identification Number: H8NCS54238-01-00 Award Periods: September 1, 2024 – August 31, 2025 Type of Finding: Immaterial noncompliance and significant deficiency in internal control over compliance Criteria: A grantee's system of internal control should include processes to review after-the-fact interim charges made to a federal award based on budget estimates. 45 CFR 75.430(i)(1). Condition: During the testing of expenses charged to the grant, it was noted that the same expense was charged to the grant as part of two separate grant draws. Questioned Costs: $7,629. Context: The above condition impacted one (1) of sixty (60) transactions selected for testing. However, subsequent to year end and prior to the close of the grant period, the Organization identified the overdraw and corrected the error by reducing amounts requested in a subsequent draw. Cause: The Organization had inconsistent methods for tracking general disbursements charged to the grant and did not implement procedures to verify whether expenditures had already been included in prior draw requests. Effect: The Organization may inadvertently overcharge the grant for general disbursements which could result in noncompliance with federal grant requirements. Repeat Finding: No. Recommendation: We recommend the Organization implement a comprehensive and thorough process to review all payroll and non-payroll expenses charged to the grant prior to submitting the drawdown request to HRSA and implement a consistent process for identifying the specific expenses being charged to each grant.