Finding Text
2024-002: Healthy Start Fringe Rate
Grantor: Department of Health and Human Services
Program Title: Healthy Start Initiative
Award Name: Healthy Start Initiative‐Eliminating Racial/Ethnic Disparities
Award Number: H4927805
Assistance Listing Title: Healthy Start Initiative
Assistance Listing Number: 93.926
Award Year: April 1, 2023 – August 31, 2024
Passthrough Entity: None
Criteria
Per 2 CFR 200.431(c), the cost of fringe benefits are allowable provided that the benefits are reasonable.
Condition
Per the Johns Hopkins All Children's Hospital, Inc. Hospital Rate Agreement dated 12/23/2022, the agreedupon fringe rate was 27% for the period 7/1/2022 to 6/30/2026. JHHS charged costs for fringe benefits to the
award at the rate of 29% during the 2024 fiscal year.
Cause
Since the Notice of Award #4H49MC27805-10-05 stated that up to 25% of the total approved budget may be
reallocated within the approved categories without prior approval, management believed they were allowed to
charge fringe costs at a rate higher than the agreed-upon negotiated rate if the difference in cost did not exceed
25% of the budget.
Effect
JHHS charged $5,906 of additional fringe costs to the award in excess of the agreed-upon negotiated rate.
Questioned Costs
The $5,906 of additional fringe charged to this award in excess of agreed-upon fringe rate is a questioned cost.
Recommendation
JHHS should establish a process to ensure that the appropriate or agreed-upon negotiated fringe rate is being
used, unless the award agreement allows for any modification of the negotiated rate or prior agency approval is
obtained.
Management’s Views and Corrective Action Plan
Refer to Management’s View’s and Corrective Action Plan at the end of the report.