Finding Text
Federal Agency: U.S. Department of Health and Human Services
Federal Program Name: Health Center Program
Assistance Listing Number: 93.224/93.527
Federal Award Identification
Number: H8F40833-01-00; H8024103-11-00
Award Periods: April 1, 2021 – March 31, 2023; May 1, 2022 – April 30, 2023
Type of Finding: Immaterial noncompliance and Significant deficiency in internal control over compliance
Criteria: The Consolidated Appropriations Act, 2023, Division H, § 202 indicates "None of the funds appropriated in this title shall be used to pay the salary of an individual, through a grant or other extramural mechanism, at a rate in excess of Executive Level II." If salaries are in excess of the salary
cap, the amount of salaries charged to a federal award must be reduced to the Executive Level II amount, with any excess being paid by the non-federal entity with non-federal funds.
Condition: The Organization charged three employees' salaries in excess of the federal salary cap.
Questioned Costs: $900.
Context: Three (3) of forty (40) payroll transactions selected for testing.
Cause: The Organization’s internal draw down tracking worksheet contained an old salary for the employee or salary was not updated as employees are added to and removed from the grant throughout the fiscal year.
Effect: Resulted in the Organization charging three employees' salaries in excess of the Federal salary cap.
Repeat Finding: No.
Recommendation: CLA recommends formatting the internal HRSA draw down worksheet to include conditional formatting when an employee's pay per pay period exceeds the amount that would be allowed by the federal salary cap.
Views of Responsible Officials: There is no disagreement with the audit finding.