Finding Text
Finding 2025-005: Period of Performance – Material Weakness Name of Federal Agency: U.S. Department of Health and Human Services U.S. Department of Agriculture Federal Program Names: Health Center Program Cluster Health Center Program Cluster (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) WIC Special Supplemental Nutrition Program for Women, Infants, and Children Federal Assistance Listing Number: 93.224 and 10.557 Federal Award Identification Number and Year: H800344 – 2024 through 2026, 256TX507Q1003 for all programs except for PEER program – 2025, 256TX527Q5003 and 246TX527W5003 for PEER program - 2025 Criteria: In accordance with §200.309, Period of Performance, and applicable program requirements, Federal award expenditures are required to be incurred within the approved period of performance specified in the award agreement. Costs incurred before the beginning date or after the ending date of the approved period of performance are generally unallowable unless specifically authorized by the Federal awarding agency. Condition and Context: See material weakness in internal control over financial reporting item 2025-001. Audit procedures identified that payroll periods overlapping the fiscal year-end were not properly allocated. Specifically, for the WIC (10.557) and Health Center (93.224) programs, the District incorrectly included three days of salary from the prior fiscal year (September 2024) while failing to accrue four days of salary earned within the current fiscal year (September 2025). The cumulative impact of these errors resulted in a net understatement of $20,957 in SEFA expenditures as follows: WIC (10.557): $1,477 Understatement Health Center (93.224): $19,480 Understatement Cause: See material weakness in internal control over financial reporting item 2025-001. Effect or Potential Effect: As discussed in the material weakness in internal control over financial reporting item 2025-001, the schedule of expenditures of federal awards was under accrued as of year end. Questioned Costs: None. The costs were determined to be allowable and substantiated; however, they were reported in the incorrect fiscal period. Identification of Repeat Finding: Yes. (A similar deficiency was identified in the prior year as Finding 2024-002) Recommendation: See material weakness in internal control over financial reporting item 2025-001. View of Responsible Officials: See material weakness in internal control over financial reporting item 2025-001.