Finding 2023-002: Activities Allowed or Unallowed and Allowable Cost/Cost Principles
Description of Finding: Significant Deficiency in Internal Control/Noncompliance – Expenditures charged to the grant were not authorized in the grant budget.
Corrective Action:
GHS agrees with the finding and the recommendation.
GHS grant reporting staff will do a detailed review of all grant agreements to obtain a thorough understanding of allowable costs in the grant budget. Then the following steps will be taken to ensure compliance:
• Once the grant budget has been approved by the Board of Directors and submitted to HRSA, staff allocated to the grant will be coded in the payroll system directly to the grant cost center.
• Any other costs included in the submitted grant budget will be directly coded to that cost center as incurred on a monthly basis as well.
• A review of the costs assigned to the grant cost center will be completed, comparing the actual costs each month to allocated monthly budgeted amount that was approved and submitted to HRSA.
• This review will be done by the accounting manager responsible for grant reporting as well as the accounting manager responsible for the FQHC financial reporting as a whole. The Executive Director of the FQHC and the CFO will provide the final review of the monthly expenditures charged to the grant.
• Any questions or needed changes will be communicated to the grant accountant for explanation or modification each month.
Name of Contact Person:
Glen Chipman, CFO
1040 W Bristol Rd
Flint, MI 48732
810-496-5487
gchipman@genhs.org
Projected Completion Date:
The above outlined steps have been put in place as of 6/15/2024 and will be reviewed periodically for continued efficiency.