Finding Text
2026-002 Allowable Costs/Cost Principles (repeat of finding 2025-002) Program Information Federal Organization U.S Department of Health and Human Services Assistance Listing Numbers 93.224 Health Center Program Cluster Award Numbers H80CS00513 Criteria [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Title 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Subpart E sets for the specific cost principles to be followed when expending federal funds. Condition The Organization claimed an expenditure for reimbursement that was not consistent with the cost principles requirements of Subpart E. This finding appears to be an isolated incident. Cause The Organization’s internal controls did not include proper review of transactions charged to federal programs to ensure that the goods or services received were allowable costs that conform to the cost principles in Subpart E. Effect The Organization may allocate unallowable costs to the federal awards. Questioned Costs $5,500 Context In a sample of 40 transactions tested, one was found to be for expenditures that were not consistent with the allowable cost principles. Recommendation Management should establish controls to identify and prevent duplicate expense postings. These controls will help ensure that expenses recorded in the general ledger accurately reflect actual expenditures, are supported by underlying documentation, and do not include duplicate amounts carried forward from prior invoices. Views of responsible officials and planned corrective action Management is in agreement with this finding and will take corrective action as outlined on page 33.