Finding Text
Allowable Costs - Lack of Management Oversight to Ensure Retention of Cash Disbursement and Expenses Approval – Material Weakness in Internal Control Over Compliance U.S. Department of Health and Human Services: Health Center Program and American Rescue Plan Act Funding for Health Centers, ALN 93.224; Ending HIV Epidemic – Primary Care HIV Prevention, ALN 93.527. Criteria In accordance with the Uniform Guidance, the costs charged to federal funds must comply with the cost principles of 45 CFR Part 75, Subpart E, and any other requirements or restrictions on the use of federal funding. Condition and Context During disbursement testing, we noted that the Health Center was unable to provide supporting invoices for 9 of the 15 transactions selected for testing. In addition, 3 transactions lacked evidence of payment, such as canceled checks, bank statements, or other proof of disbursement. Of the 6 invoices provided, 1 invoice lacked evidence of review or approval, and 2 invoices related to expenditures that were determined to be unallowable under the applicable grant requirements. Cause Staff turnover in the Finance Department coupled with inadequate controls to ensure that the that invoices and related approvals are adequately maintained and supported. Effect and Potential Effect We were unable to determine whether the expenses charged to the federal award were accurate, allowable, and properly allocated, leading to potentially inaccurate information being charged through the awards. Questioned Costs $86,905. Repeat Finding No. Recommendation We recommend that management implement procedures to ensure that invoices and related approvals are adequately maintained and supported. We also recommend that management implement procedures to ensure that all costs claimed under federal grants are allowable in accordance with federal regulations. Views of Responsible Officials and Planned Corrective Action See corrective action plan.