Finding 554942 (2024-003)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2024
Accepted
2025-04-14

AI Summary

  • Core Issue: Internal controls for tracking allowable costs are weak, leading to potential double reimbursement for employee wages from two grants.
  • Impacted Requirements: Wages for two employees were improperly charged to both the ODH and HRSA grants for the same pay periods, totaling questioned costs of $1,366.
  • Recommended Follow-Up: Implement a review process where reimbursement requests for all grants are checked by the same individual, and ensure timesheets are reviewed to confirm allowable costs align with specific grants.

Finding Text

Allowable Costs Federal agency: U.S. Department of Health and Human Services Federal program title: Health Center Program Cluster (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) Assistance Listing Number: 93.224/93.527 Federal Award Identification Number: H8026575-2023, H8026575-2024, H8G48725-2022 Award Period: December 2022 through February 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: During our testing, we identified a breakdown in internal controls for tracking allowable costs. Two employees’ wages were included in reimbursement support for both the Ohio Department of Health (ODH) Grant and the Health Center Program (HRSA) Grant for some of the same pay periods. . Condition: During our testing, we noted a breakdown in controls where 2 employees whose wages were include in support for reimbursement by one grant were also included in the support for reimbursement by the Health Center Program (HRSA) grant for a few of the same pay periods. Questioned costs: $1,366 Context: In a sample of twenty-seven employees, two employees’ wages were charged and reimbursed by both the ODH and HRSA Grant for the same pay periods. Cause: Employees are assumed to work entirely for the HRSA Grant, and separate time reports are prepared for time worked on the ODH Grant. The reimbursement requests for each grant were prepared and reviewed by different individuals; therefore, there is a risk for error that the same person was charged to both grants was higher. In addition, the timesheets for individuals were not reviewed in the preparation of payroll expenses for the HRSA Grant. Effect: Employee wages for the same period could be reimbursed by two grants. Repeat Finding: No Recommendation: Reimbursement requests for all grants should be reviewed by the same individual for all grants before submission to the grantor to ensure that employees charged to the grants are different, in addition, timesheets should be reviewed during the grant reimbursement process to ensure time supports the specific grant and allowable costs. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Health Center Program Cluster (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) -Assistance Listing No. 93.224 /93.527 Recommendation: Reimbursement requests should be reviewed by the CFO for all grants before submission to the grantor to ensure that employees charged to the grants are different, in addition, timesheets should be reviewed during the grant reimbursement process to ensure time supports the specific grant and allowable costs. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The CFO will review all grant submissions based on personnel costs each month and ensure that there are no duplicate billings and that timesheets appropriately reflect staff involvement. Name(s) of the contact person(s) responsible for corrective action: Jeff Forman, CFO. Planned completion date for corrective action plan: March 21, 2025

Categories

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

Other Findings in this Audit

  • 554940 2024-001
    Significant Deficiency
  • 554941 2024-002
    Significant Deficiency
  • 554943 2024-001
    Significant Deficiency
  • 554944 2024-002
    Significant Deficiency
  • 554945 2024-003
    Significant Deficiency
  • 1131382 2024-001
    Significant Deficiency
  • 1131383 2024-002
    Significant Deficiency
  • 1131384 2024-003
    Significant Deficiency
  • 1131385 2024-001
    Significant Deficiency
  • 1131386 2024-002
    Significant Deficiency
  • 1131387 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.224 Community Health Centers $1.27M
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $268,215
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $9,511