Finding Text
Finding 2021-007: Period of Performance - Material Weakness
Grantor: U.S. Department of Health and Human
Services
Federal Program Names: Health Center Program Cluster:
Health Center Program (Community Health
Centers, Migrant Health Centers, Health
Care for the Homeless, and Public Housing
Primary Care)
COVID-19 Health Center Program
(Community Health Centers, Migrant Health
Centers, Health Care for the Homeless, and
Public Housing Primary Care)
Grants for New and Expanded Services
under the Health Center Program
Federal Assistance Listing Numbers: 93.224 and 93.527
Federal Award Identification Number and Year: H80CS26638 - 2020 and 2021,
H8DCS35487 - 2020, H8CCS34364 - 2020,
H8ECS38373 - 2020, and H8F40829 - 2021
Criteria
A non-federal entity may charge only allowable costs incurred during the approved budget period of
a federal award's period of performance that were authorized by the federal awarding agency or
pass-through entity (2 CFR sections, 200.308, 200.309 and 200.403(h)).
Condition
There was no evidence of the Center's review and approval of the period of performance for
expenditures during the year.
Cause
The Center did not have adequate controls to review period of performance to ensure all goods and
services are appropriately included or excluded.
Effect
The Center may charge goods or services to the grant that are not within the grant's period of
performance.
Questioned Costs
None.
Context
We selected 25 payroll transactions charged to the federal program to test controls over period of
performance. Out of the 25 transactions tested, we noted 25 instances where there was no formal
approval of the cost charged to the major program by evidence of a review signature on the labor
reports. Additionally, we selected five nonpayroll transactions where all five instances did not have
evidence of review.
Identification of Repeat Finding
Yes, see finding 2020-007.
Recommendation
The Center should develop written procedures to review all expenditures to ensure they are within
the proper period of performance of the grant.
Views of Responsible Officials
Management and the Board of Directors agree with the finding and will implement additional
controls to ensure there is formal evidence of approval over the period of performance for goods
and services purchased under the grant.