Finding Text
Finding No. 2025‐002: Allowable costs – Material weakness in internal control over compliance and compliance finding 93.917 HIV Care Formula Grant (Ryan White Part B) Criteria: In accordance with Section 200.430 of the Uniform Guidance, charges for personnel expenses using federal awards must be supported by a system of internal control that provides reasonable assurance that charges are accurate, allowable and properly allocated. Condition: During our review of personnel expenses, we noted that 13 out of 14 sampled personnel costs did not recalculate based on the employee’s pay rate and hours spent on the grant per timesheet. Per our review, 100% of their time was charged to Ryan White Part B when the timesheets documented less than 100% of total time charged. Cause: The Organization experienced turnover in accounting management at the beginning of 2025. The new interim management did not ensure personnel costs charged to the grant were supported by timesheets. Effect: The Organization’s reporting of grant expenditures per employee time and effort is not fully documented, in accordance with the Uniform Guidance requirements. Questioned costs: $7,963. Questioned costs were determined by multiplying the non Ryan White Part B percentage by the total employee’s costs charged for the respective pay period. Recommendation: Management should review the current procedures and the requirements of Section 200.430 and implement changes where necessary to ensure personnel costs are charged in accordance with Section 200.430 and that the expenses are supported by properly approved employee timesheets. Management’s Response: See corrective action plan.