Finding 400808 (2022-010)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2024-06-13
Audit: 308831
Organization: Healthhiv (DC)
Auditor: Marcum LLP

AI Summary

  • Core Issue: There are significant errors in expense reporting for federal awards, leading to overstated costs.
  • Impacted Requirements: Compliance with allowable cost principles is compromised, affecting ALN 93.834 and ALN 93.136 programs.
  • Recommended Follow-Up: Review and adjust reported expenses to correct overstatements and prevent future inaccuracies.

Finding Text

Finding No. 2022-010: Allowable Cost and Cost Principles – Material Weakness – Internal Control and Compliance Finding ALN 93.834 – Capacity Building Assistance for High Impact HIV; Grant Number 5NU65PS923684-04-00; Grant Period: April 1, 2019 to March 31, 2024 ALN 93.136 – Injury Prevention and Control Research and State and Community Based Programs; Grant Number HAHSTA2020-000017; Grant Period: July 1, 2020 to August 31, 2024 Findings 2022-004 and 2022-007 are also findings for the federal award programs as they impacted the expenses charged to the federal awards. For ALN 93.834, there was an instance in which an expense for $18,430 was recorded in 2022, when the service was provided only in 2023. Thus, the expenses reported for ALN 93.834 were overstated by $18,430 before any adjustment were made to correct the overstatement. For ALN 93.136, there were duplicate consulting expenses totaling $66,854 that were charged and billed twice to the program in 2021. Thus, the expenses reported for ALN 93.136 in 2021 were overstated by $66,854, which is considered a questioned cost.

Corrective Action Plan

We have immediately taken corrective action to properly enhance our internal control for verifying program expenses.

Categories

Allowable Costs / Cost Principles Material Weakness

Other Findings in this Audit

  • 400806 2022-008
    Material Weakness Repeat
  • 400807 2022-009
    Material Weakness Repeat
  • 400809 2022-008
    Material Weakness Repeat
  • 400810 2022-009
    Material Weakness Repeat
  • 400811 2022-010
    Material Weakness Repeat
  • 977248 2022-008
    Material Weakness Repeat
  • 977249 2022-009
    Material Weakness Repeat
  • 977250 2022-010
    Material Weakness Repeat
  • 977251 2022-008
    Material Weakness Repeat
  • 977252 2022-009
    Material Weakness Repeat
  • 977253 2022-010
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.834 Capacity Building Assistance (cba) for High-Impact Hiv Prevention $1.44M
93.136 Injury Prevention and Control Research and State and Community Based Programs $522,588
93.914 Hiv Emergency Relief Project Grants $418,119
93.118 Acquired Immunodeficiency Syndrome (aids) Activity $148,594
93.788 Opioid Str $148,315