Finding Text
2024-006: Return of Interest Earned on Advance Payment Cash Receipts
Grantor: Department of Health and Human Services (DHHS)
Program Title: Hospital Preparedness Program (HPP) Ebola Preparedness and Response Activities
Award Name: Region 3 Emerging Special Pathogen Treatment Center at The Johns Hopkins Hospital (JH
Biocontainment Unit)
Award Number: U3REP220674
Assistance Listing Title: Hospital Preparedness Program (HPP) Ebola Preparedness and Response Activities
Assistance Listing Number: 93.817
Award Year: September 30, 2023 – September 29, 2024
Passthrough Entity: None
Criteria
Per 2 CFR 200.305(b)(11)-(12), the auditee must maintain advance payments of Federal funds in interestbearing accounts and may retain up to $500 per year of interest earned on Federal funds to use for
administrative expenses of the recipient or subrecipient. Any additional interest earned on Federal funds must
be returned annually to the DHHS Payment Management System (PMS).
Condition
JHHS received advance payments from DHHS for the HPP award totaling $1,615,384 in October 2023, which
were maintained in an interest-bearing account and disbursed over the period through September 2024. During
the fiscal year ended 6/30/2024, JHHS earned $51,620 of interest, which was not returned to DHHS.
Cause
Management was not aware of the requirement to return interest earned on advance payments in excess of
$500.
Effect
Management did not perform a calculation of interest earned and return the interest earned to DHHS at least
annually, as required.
Questioned Costs
There are no questioned costs associated with this finding.
Recommendation
JHHS should return the interest earned to DHHS as required, and establish a process to ensure that interest on
advance payments received from federal agencies is calculated at least annually and returned appropriately if
interest earned is in excess of $500.
Management’s Views and Corrective Action Plan
Refer to Management’s View’s and Corrective Action Plan at the end of the report.