Finding Text
Period of Performance Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster Assistance Listing Number: 93.224 and 93.527 Federal Award Identification Number: H80CS00824-24 Award Periods: May 1, 2025 – April 30, 2026 Type of Finding: Immaterial noncompliance and significant deficiency in internal control over compliance Criteria: Per 2 CFR 200.309, federal award recipients may charge to the federal award only allowable costs incurred during the approved period of performance. The auditee is responsible for establishing and maintaining effective internal control procedures to ensure expenditures charged to federal programs are incurred within the approved grant period. Condition: We noted the Organization did not have a formal process to review expenditures charged to federal programs to ensure they were incurred within the applicable period of performance. Specifically, management did not maintain documentation or a monitoring process to verify that expenditures recorded near the beginning or end of the grant period were incurred within the authorized period of performance. Questioned Costs: $6,504 Context: Seven (7) and of the eleven (11) transactions selected for testing related to expenditures incurred outside the period or performance. Cause: The Organization did not have a formal policy and procedure to closely review the expense charged to the grant during the first and last months of the grant period. Effect: Without adequate controls over period of performance, there is an increased risk that expenditures could be charged to federal awards outside the approved grant period. Repeat Finding: No. Recommendation: We recommend the Organization implement a comprehensive and thorough process to review and monitor expenditures charged near the beginning and end of grant periods to ensure the expenditures incurred are within the authorized federal award grant period.