Finding 1240191 (2026-002)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2026
Accepted
2026-10-08

AI Summary

  • Issue: The Clinic spent $4,356 on employee massage services as a wellness benefit without a formal written policy.
  • Impact: This expense was included in payroll costs submitted for reimbursement under the Health Centers Program, but it is not necessary for the federal award.
  • Recommendation: Establish a formal policy for wellness benefits and review expense eligibility for federal reimbursement.

Finding Text

During the fiscal year, the Clinic paid $4,356 for massage services provided to employees as a wellness benefit. The employee providing this benefit is compensated entirely through the Health Centers Program (93.224). This cost was processed through the Clinic's regular payroll and was included in full within payroll costs submitted for reimbursement under the Health Centers Program. The Clinic did not have a formal written policy governing this wellness benefit, and the benefit does not represent a cost necessary to the performance of the federal award.

Corrective Action Plan

1. Immediate Termination: Upon discovery of this error during the audit, EVMC immediately terminated the massage wellness benefit. 2. Reimbursement of Questioned Costs: EVMC will reimburse the Health Center Program (93.224) the full questioned amount of $4,356 using non-federal funds, as necessary.

Categories

Cash Management

Other Findings in this Audit

  • 1240190 2026-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.224 HEALTH CENTER PROGRAM $1.09M
93.800 ORGANIZED APPROACHES TO INCREASE COLORECTAL CANCER SCREENING $3,500