Finding 34694 (2022-001)

Finding 2022-001 ? Health insurance premium questioned cost Condition: The health insurance premiums for a few employees that were no longer employed by WCIC were paid using federal funds from the Head Start grants. Criteria: Health benefits charged to federal grant funds need to be directly related to employees providing services under the grant program. Cause: WCIC did not notify the health insurance provider that employees had terminated within the required timeframe. Effect: Due to the terminated employees not being removed from the health insurance, WCIC over-paid on health insurance premiums going as far back as November 2018 using federal grants that will need to be repaid. Recommendation: We recommend that management establish a process whereby the health insurance provider is notified of employee terminations and that all health insurance invoices be reviewed on a monthly basis for employees that have ceased working for WCIC. Management Response and Corrective Action Plan: Management attempted to receive a refund from the insurance agency but were denied due to the period of their request being beyond the insurance agency?s refund policy. Only four of the most recent months were refunded. The remaining premiums will be repaid to the federal pass-through agency out of nonfederal funds.