Finding Text
Federal Agency: Department of Health and Human Services
Federal Program: Teenage Pregnancy Prevention Program
Federal Assistance Listing Number(s): 93.297
Award Period: July 1, 2023 to June 30, 2024
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Compliance – Other Matters
Criteria or Specific Requirement: According to 2 CFR § 200.309, costs must be incurred during the period of performance specified in the federal award. Costs incurred outside this period are unallowable unless explicitly authorized by the awarding agency.
Condition: During testing, it was noted that costs totaling $6,933 were charged to the award outside the designated period of performance. Specifically, these costs were incurred before the start date of the award.
Questioned Costs: $6,933
Context: Of the costs tested it was identified five of eight transactions sampled were incurred prior to the period of performance start date listed in the notification of award. The total dollar amount was $6,933 and related to payroll incurred prior to the start date of the award but paid after the start date.
Cause: The Organization did not have adequate internal controls to ensure that costs were only charged within the period of performance. There was a lack of communication between the finance department and program managers regarding the start date of the award.
Effect: Questioned costs were identified.
Repeat Finding: No
Recommendation: We recommend the Organization implement stronger internal controls to monitor the period of performance on its federal awards. This includes regular training for staff on compliance requirements and establishing clear communication channels between finance and program departments.
Views of Responsible Official: There is no disagreement with the audit finding.