Finding 508008 (2019-014)

Material Weakness
Requirement
H
Questioned Costs
$1
Year
2019
Accepted
2024-11-14

AI Summary

  • Core Issue: CHCC failed to provide necessary documentation for expenditures, leading to noncompliance with federal requirements regarding the period of performance.
  • Impacted Requirements: Expenditures totaling $80,809 were questioned due to lack of support for costs incurred and liquidated outside the allowed timeframes.
  • Recommended Follow-Up: Personnel should enhance recordkeeping and monitor compliance with funding period dates, ensuring all expenditures are documented and liquidated timely.

Finding Text

Finding No.: 2019-014 Federal Agency: U.S. Department of Health and Human Services CFDA Program: 93.268 Immunization Cooperative Agreements Award Numbers: 6NH231P000736-05-01 and 5NH231P000786-05-00 Area: Period of Performance Questioned Costs: $80,809 Criteria: In accordance with 45 CFR §75.309, a non-Federal entity may charge to the federal award only allowable costs incurred during the period of performance and any costs incurred before the U.S. Department of 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. Funds available to pay allowable costs during the period of performance include both federal funds awarded and carryover balances. In addition, a non-Federal entity must liquidate all obligations incurred under the award not later than 90 days after the end of the funding period. This deadline may be extended with prior written approval from the HHS awarding agency. Condition: Of nineteen expenditures tested, aggregating $88,887 of a total population of $778,897, the following deficiencies were noted: 1. For ten (or 53%), no supporting documents were provided to substantiate that the expenditures were incurred within the period of performance. Finding No.: 2019-014, continued Federal Agency: U.S. Department of Health and Human Services CFDA Program: 93.268 Immunization Cooperative Agreements Award Numbers: 6NH231P000736-05-01 and 5NH231P000786-05-00 Area: Period of Performance Questioned Costs: $80,809 Condition, continued: 2. For eight (or 42%), cancelled checks or other form of payment were not provided; accordingly, CHCC was not able to substantiate that expenditures were liquidated within the grant award’s liquidation period. 3. For one (or 5%), liquidation occurred more than ninety days after the period of performance end date. Of eight subsequent expenditures tested, aggregating $19,730 of a total population of $19,744, the following deficiencies were noted: 4. For seven (or 88%), supporting documents were not provided. Accordingly, CHCC was not able to substantiate that the expenditures were incurred/obligated within the period of performance end date of 06/30/19 and were liquidated within the liquidation period end date of 09/30/19. Finding No.: 2019-014, continued Federal Agency: U.S. Department of Health and Human Services CFDA Program: 93.268 Immunization Cooperative Agreements Award Numbers: 6NH231P000736-05-01 and 5NH231P000786-05-00 Area: Period of Performance Questioned Costs: $80,809 Condition, continued: 5. For one (or 13%), the expenditure was liquidated after the liquidation period end date of 09/30/19. Cause: CHCC did not enforce recordkeeping and monitoring controls over compliance with applicable period of performance requirements. Finding No.: 2019-014, continued Federal Agency: U.S. Department of Health and Human Services CFDA Program: 93.268 Immunization Cooperative Agreements Award Numbers: 6NH231P000736-05-01 and 5NH231P000786-05-00 Area: Period of Performance Questioned Costs: $80,809 Effect: CHCC is in noncompliance with applicable period of performance requirements and questioned costs of $80,809 result. Recommendation: The responsible personnel should review funding period dates prior to charging expenditures to a federal award. They should also ensure that purchase order, contracts, checks or evidence that the check cleared are properly filed for support. Furthermore, the responsible personnel should monitor check payments to ensure that liquidations occur in a timely manner. If extensions are necessary, grantor approval should be sought. Views of Responsible Officials: CHCC’s Corrective Action Plan provides a detailed rationale for disagreement with the finding described in Conditions 3 to 5, and states agreement with Conditions 1 and 2; however, disagrees with the questioned costs. Auditor Response: Conditions 1 and 2 - Questioned costs are warranted given transactions tested were not supported by adequate documentations. Condition 3 - Condition pertains to liquidation requirement and not obligation requirement. Finding No.: 2019-014, continued Federal Agency: U.S. Department of Health and Human Services CFDA Program: 93.268 Immunization Cooperative Agreements Award Numbers: 6NH231P000736-05-01 and 5NH231P000786-05-00 Area: Period of Performance Questioned Costs: $80,809 Auditor Response, continued: Conditions 4 and 5 - Documentations provided by the Director of Grants and Fiscal Integrity on 09/27/24 do not pertain to transactions tested. In addition, initial draft reports were provided to CHCC on 09/06/24 and 09/24/24. It was also agreed during the 09/06/24 and 10/04/24 meetings for CHCC to provide corresponding underlying accounting records to resolve the finding; however, no documentations were provided within the agreed timeline. Accordingly, finding is sustained.

Corrective Action Plan

Finding No.: 2019-014 Federal Agency: U.S. Department of Health and Human Services CFDA Program: 93.268 Immunization Cooperative Agreements Award Numbers: 6NH231P000736-05-01 and 5NH231P000786-05-00 Area: Period of Performance Questioned Costs: $80,809 Contact Persons: Perlie Santos, Chief Financial Officer; Emman Parian, Immunization Manager; Vincent Camacho, Grants Administrator; Chellah Sablan, Comptroller. Corrective Action: Condition 1 CHCC concurs with the finding but not the questioned costs. Documents 11809, 11845, 11860, 11854, 11809, 11846 and 11861 pertain to payroll transactions for which the payroll register and supporting documents are readily available for testing. They may have not been properly labeled when transmitted to the auditor, hence CHCC would like to request for the subsequent audits to be performed onsite. The remaining documents were emailed to the auditor on May 29, 2024. We would like to request the subsequent audits to be performed onsite. Condition 2 CHCC concurs with the finding but not the questioned cost. Copies of ACH for 11809, 11845, 11860, 11854, 11809, 11846 and 11861 had personal identifiable information and were not submitted electronically to the auditors. Finding No.: 2019-014 Continued Condition 3 CHCC does not concur with the findings and the questioned costs. Based on the Uniform Guidance, the obligation is made as follows: Condition 4 and 5 CHCC does not concur with the findings and the questioned costs. The additional samples were provided to the auditors on an email from of Director of Grants and Fiscal integrity on September 27, 2024. These were not on the September 24, 2024 draft provided to CHCC. With the implementation of the Munis Financial Information System in January 2023, CHCC is now able to electronically attach scanned supporting documents to the vouchers through the Tyler Content Manager (TCM). This will allow for audit testing to be done by providing auditors view only access to CHCC Financial Information System. Proposed Completion Date: On-Going

Categories

Questioned Costs Subrecipient Monitoring Matching / Level of Effort / Earmarking Procurement, Suspension & Debarment Allowable Costs / Cost Principles Period of Performance

Other Findings in this Audit

  • 507998 2019-004
    Material Weakness Repeat
  • 507999 2019-005
    Material Weakness Repeat
  • 508000 2019-006
    Material Weakness Repeat
  • 508001 2019-007
    Material Weakness Repeat
  • 508002 2019-008
    Material Weakness Repeat
  • 508003 2019-009
    Material Weakness
  • 508004 2019-010
    Material Weakness
  • 508005 2019-011
    Material Weakness Repeat
  • 508006 2019-012
    Material Weakness Repeat
  • 508007 2019-013
    Material Weakness Repeat
  • 508009 2019-015
    Material Weakness
  • 508010 2019-016
    Material Weakness Repeat
  • 1084440 2019-004
    Material Weakness Repeat
  • 1084441 2019-005
    Material Weakness Repeat
  • 1084442 2019-006
    Material Weakness Repeat
  • 1084443 2019-007
    Material Weakness Repeat
  • 1084444 2019-008
    Material Weakness Repeat
  • 1084445 2019-009
    Material Weakness
  • 1084446 2019-010
    Material Weakness
  • 1084447 2019-011
    Material Weakness Repeat
  • 1084448 2019-012
    Material Weakness Repeat
  • 1084449 2019-013
    Material Weakness Repeat
  • 1084450 2019-014
    Material Weakness
  • 1084451 2019-015
    Material Weakness
  • 1084452 2019-016
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $3.68M
93.268 Immunization Cooperative Agreements $3.36M
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $1.97M
93.870 Maternal, Infant and Early Childhood Homevisiting Grant Program $865,589
93.104 Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (sed) $763,992
93.982 Mental Health Disaster Assistance and Emergency Mental Health $613,302
93.116 Project Grants and Cooperative Agreements for Tuberculosis Control Programs $589,264
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $544,042
15.875 Economic, Social, and Political Development of the Territories $533,528
97.032 Crisis Counseling $501,942
93.074 Hospital Preparedness Program (hpp) and Public Health Emergency Preparedness (phep) Aligned Cooperative Agreements $494,660
93.994 Maternal and Child Health Services Block Grant to the States $452,851
93.236 Grants to States to Support Oral Health Workforce Activities $331,358
93.217 Family Planning Services $272,252
93.251 Universal Newborn Hearing and Screening $269,168
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $258,698
93.959 Block Grants for Prevention and Treatment of Substance Abuse $233,626
93.165 Grants to States for Loan Repayment $125,000
93.945 Assistance Programs for Chronic Disease Prevention and Control $120,169
93.917 Hiv Care Formula Grants $115,562
93.958 Block Grants for Community Mental Health Services $110,106
93.110 Maternal and Child Health Federal Consolidated Programs $89,729
93.644 Adult Medicaid Quality: Improving Maternal and Infant Health Outcomes in Medicaid and Chip $86,496
93.069 Public Health Emergency Preparedness $69,626
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $66,588
93.377 Prevention and Control of Chronic Disease and Associated Risk Factors in the U.s. Affiliated Pacific Islands, U.s. Virgin Islands, and P. R. $65,865
93.314 Early Hearing Detection and Intervention Information System (ehdi-Is) Surveillance Program $64,766
93.504 Family-To-Family Health Information Centers $63,569
93.788 Opioid Str $57,326
93.150 Projects for Assistance in Transition From Homelessness (path) $53,208
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $46,310
93.991 Preventive Health and Health Services Block Grant $39,096
93.889 National Bioterrorism Hospital Preparedness Program $32,585
93.073 Birth Defects and Developmental Disabilities - Prevention and Surveillance $16,318
97.088 Disaster Assistance Projects $12,625
10.855 Distance Learning and Telemedicine Loans and Grants $6,162
93.817 Hospital Preparedness Program (hpp) Ebola Preparedness and Response Activities $4,921
93.103 Food and Drug Administration Research $4,911
10.578 Wic Grants to States (wgs) $3,323
16.575 Crime Victim Assistance $1,379