Finding Text
Lack of Documentation for Expenses Submitted for Reimbursement (initially reported 2021)
Assistance Listing Number: 93.224
Name of Federal Agency: Department of Health and Human Services, HRSA
Program Title: Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care)
Compliance Requirement: Allowable Costs
Pass-through Entity: N/A
Federal Grant/Contract Number and Grant Year: COVID-19 ARP H8FCS40324-01 (2021)
Finding Type: Material Weakness in Internal Control
Known Questioned Costs: $335,534
Condition: The Organization submitted costs for reimbursement of medical supplies which could not be supported with related invoices.
Criteria: 2 CFR section 200.303 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Based on grant compliance requirements related to allowable costs management should review submission of reimbursement request to ensure costs submitted can be supported by underlying accounting documentation.
Cause: Management did not review prior to submission of costs for reimbursement to ensure they could be supported by underlying accounting documentation and had not been applied as direct costs of another federal program.
Effect: Submission of unallowable costs under the program may result in losing funding under the program.
Recommendation: Management should review all costs prior to request for reimbursement for determination that costs could be supported by underlying accounting documentation and that costs were not included as a cost of any other federally financed program in either the current or prior period.
Views of Responsible Officials and Planned Corrective Actions: The Organization has hired a new Chief Financial Officer, as of March 2022, as well as additional supporting staff within the finance department. The Organization has reviewed and updated its grant drawdown procedures to included only actual cost and for the request to be reviewed and approved by someone other than the preparer prior to submission. The corrective action for this finding has been approved and implemented by the Organization.