Finding Text
Finding No. 2022-005
Federal Agency: U.S. Department of Health and Human Services
AL Program: 93.224 Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care)
Federal Award No.: H8031624, H8F41048, H8D36529
Area: Period of Performance
Questioned Costs: $98,002
Criteria:
In accordance with 45 CFR section 75.309, a non-federal entity may charge only allowable costs incurred during the period of performance and any costs incurred before the Health and Human Services (HHS) awarding agency or pass-through entity made the Federal award that were authorized by the Federal awarding agency or pass-through entity.
Condition:
For forty subsequent expenditures tested, aggregating $98,002 of a total population of $348,465, the following were noted:
1. For twenty-three (or 58%), expenditures were incurred and/or obligated after the obligation period of 04/30/2022.
Finding No. 2022-005, continued
Federal Agency: U.S. Department of Health and Human Services
AL Program: 93.224 Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care)
Federal Award No.: H8031624, H8F41048, H8D36529
Area: Period of Performance
Questioned Costs: $98,002
Condition, continued:
2. For one (or 3%), cancelled check or other form of evidence (document no. 73206, dated 06/06/2022 amounting to $190) was not provided; accordingly, KCHC was not able to substantiate that the payment was liquidated within the grant award’s 120 days liquidation period, for which the amount is questioned.
3. For sixteen (or 40%), no supporting documents were provided to substantiate that the expenditures were incurred within the period of performance.
Cause:
KCHC did not enforce recordkeeping and monitoring controls over compliance with applicable period of performance requirements.
Finding No. 2022-005, continued
Federal Agency: U.S. Department of Health and Human Services
AL Program: 93.224 Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care)
Federal Award No.: H8031624, H8F41048, H8D36529
Area: Period of Performance
Questioned Costs: $98,002
Effect:
KCHC is in noncompliance with applicable period of performance requirements and questioned costs of $98,002 result.
Recommendation:
Responsible personnel should establish a recordkeeping system whereby underlying support for each transaction is timely provided and is filed to facilitate easy retrieval substantiating compliance.
Identification as a Repeat Finding: Finding No. 2021-005
Views of Responsible Officials:
KCHC’s Corrective Action Plan provides a rationale for disagreement with the finding.
Auditor response:
The supporting evidence provided indicates that the expenditures were incurred after the period of performance. Further, KCHC failed to provide evidence of certain expenditures being incurred within the corresponding period of performance. The finding remains.