Finding Text
Finding No. 2025‐006: Allowable costs – Control deficiency in internal control over compliance. 93.940 HIV Prevention Activities Health Department Based Criteria: In accordance with 45 CFR 75 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Subrecipient will develop, implement and maintain financial management and control systems, which include at a minimum accurate payroll, accounting and financial reporting records, cost source documentation, effective internal and budgetary controls, and determination of reasonableness, allowability and allocability of costs, and timely and appropriate audits and resolution findings. Condition: During our review, we noted that for 2 out of 8 sampled costs we were incorrectly coded and charged to the grant. Cause: The Organization failed to ensure that all costs charged to the grant were reasonable, allowable, and allocable to the grant. Effect: Improperly coded and charged costs could result in unallowable costs. Questioned costs: $2,932. Recommendation: Management should review the current procedures and the requirements of Section 200.430 and implement changes where necessary to ensure that costs are charged in accordance with Section 200.430. Management’s Response: See corrective action plan.