Finding Text
2023-003 – Allowable Costs
Federal agency: U.S. Department of Health and Human Services
Federal program title: Health Centers Cluster
Assistance Listing Number: 93.224/93.527
Pass-Through Agency: n/a
Pass-Through Number(s): n/a
Award Period: 9/1/23-8/31/25; 4/1/21-3/31/23; 6/1/19-5/31/23; 6/1/23-5/31/26; 12/1/22-5/31/23
Type of Finding: Material Weakness in Internal Control over Compliance
Criteria or Specific
Requirement: § 200.303(a) indicates non-federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition: Two employees' wages for the pay periods selected for testing were charged in excess of 100% to the various federal and non-federal grants. One employee was charged 115% and the other 120%.
Questioned Costs: $588.
Context: Of the 37 payroll transactions selected for testing, two employees' wages were charged in excess of 100% to the various federal and non-federal grants.
Cause: Oversight.
Effect: Employees' wages are charged in excess of actual expenses incurred.
Repeat Finding: No.
Recommendation: CLA recommends the Organization maintain a master file where employees' who are charged in excess to the grant can be easily identified, or the Organization implement grant tracking within its payroll system to ensure no employee's wages are charged greater than 100%.
Views of Responsible
Officials: There is no disagreement with the audit finding.