Finding 503450 (2022-007)

Significant Deficiency
Requirement
AB
Questioned Costs
$1
Year
2022
Accepted
2024-10-22

AI Summary

  • Core Issue: There was a significant deficiency in internal controls, leading to one individual's wages exceeding federal limits charged to the Health Centers Cluster grant.
  • Impacted Requirements: Compliance with 2 CFR 200.303(a) regarding effective internal control and adherence to federal compensation limits.
  • Recommended Follow-Up: Management should establish a review process to verify individual compensation against federal limits before funds are drawn from grants.

Finding Text

Federal agency: U.S. Department of Health and Human Services Federal program title: Health Centers Cluster Assistance Listing Number: 93.224/93.527 Award Period: Varying project and budget periods: 2/1/21 – 1/31/22, 2/1/22 – 1/31/23, 4/1/21 – 3/31/23 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR 200.303(a) states that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Cost principles under 2 CFR 200 also do not allow expenditures for individual's wages that exceed a federal compensation limit. Condition: One individual's compensation charged to the federal grant had wages that exceeded federal compensation limits. Questioned costs: $24,920 of wage-related costs exceeding federal limitation. Context: While there was one individual with compensation exceeding federal limits charged to the Organization H8F grant, there were other eligible wage and other expenditures available that could have replaced the overage had it been corrected. Cause: Internal control procedures were not sufficient to identify the wages exceeding federal limits prior to being charged to the federal grant. Effect: Eligible wage expenditures were overstated due to wages that exceed federal limits for one individual. There were other available eligible expenditures sufficient to offset this overstatement, however. Recommendation: We recommend management implement a review process to check individual's compensation charged to federal grants against annual federal limitations prior to drawdown of funds. View of responsible officials: No disagreement with the finding. Management will implement review processes to identify individuals over federal wage limitations moving forward before being charged to federal grants.

Corrective Action Plan

Health Centers Cluster – Assistance Listing No. 93.2242/93.527 Recommendation: We recommend management implement a review process to check individual's compensation charged to federal grants against annual federal limitations prior to drawdown of funds. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will implement review processes to identify individuals over federal wage limitations moving forward before being charged to federal grants. Name(s) of the contact person(s) responsible for corrective action: Duke Fokuo Planned completion date for corrective action plan: December 2024

Categories

Questioned Costs Allowable Costs / Cost Principles Cash Management Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 503448 2022-005
    Significant Deficiency
  • 503449 2022-006
    Significant Deficiency
  • 503451 2022-008
    Significant Deficiency
  • 503452 2022-009
    Significant Deficiency Repeat
  • 503453 2022-005
    Significant Deficiency
  • 503454 2022-006
    Significant Deficiency
  • 503455 2022-007
    Significant Deficiency
  • 503456 2022-008
    Significant Deficiency
  • 503457 2022-009
    Significant Deficiency Repeat
  • 503458 2022-005
    Significant Deficiency
  • 503459 2022-006
    Significant Deficiency
  • 503460 2022-007
    Significant Deficiency
  • 503461 2022-008
    Significant Deficiency
  • 503462 2022-009
    Significant Deficiency Repeat
  • 503463 2022-006
    Significant Deficiency
  • 1079890 2022-005
    Significant Deficiency
  • 1079891 2022-006
    Significant Deficiency
  • 1079892 2022-007
    Significant Deficiency
  • 1079893 2022-008
    Significant Deficiency
  • 1079894 2022-009
    Significant Deficiency Repeat
  • 1079895 2022-005
    Significant Deficiency
  • 1079896 2022-006
    Significant Deficiency
  • 1079897 2022-007
    Significant Deficiency
  • 1079898 2022-008
    Significant Deficiency
  • 1079899 2022-009
    Significant Deficiency Repeat
  • 1079900 2022-005
    Significant Deficiency
  • 1079901 2022-006
    Significant Deficiency
  • 1079902 2022-007
    Significant Deficiency
  • 1079903 2022-008
    Significant Deficiency
  • 1079904 2022-009
    Significant Deficiency Repeat
  • 1079905 2022-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $6.71M
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $1.71M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.01M
93.498 Provider Relief Fund $547,931
93.558 Temporary Assistance for Needy Families $524,287
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $471,979
93.994 Maternal and Child Health Services Block Grant to the States $240,000
93.526 Affordable Care Act (aca) Grants for Capital Development in Health Centers $209,692
93.914 Hiv Emergency Relief Project Grants $145,668
93.436 Well-Integrated Screening and Evaluation for Women Across the Nation (wisewoman) $137,736
93.268 Immunization Cooperative Agreements $116,700
93.917 Hiv Care Formula Grants $98,154
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $66,784
93.235 Affordable Care Act (aca) Abstinence Education Program $60,170
93.145 Aids Education and Training Centers $57,189
14.231 Emergency Solutions Grant Program $4,134