Finding Text
Health Center Program Cluster
AL No. 93.224 and 93.527
U.S. Department of Health and Human Services
Award No. H80CS00438, H8FCS40427, H8GCS47600
Healthy Start Initiative
AL No. 93.926
Us. Department of Health and Human Services
Award No. H49MC00156
Criteria: Under 2 CFR 200.430, payroll expenses must be based on records that accurately reflect
the work performed and supported by a system of internal control that provides reasonable
assurance that charges are accurate, allowable, and properly allocated. Condition: During the testing performed, it was noted that the Organization transferred payroll
costs between programs, however, no time and effort certification or equivalent documentation
was updated to reflect the changes. Additionally, the transfer of payroll costs between grants
was not properly reflected within the accounting system records by grant. These transfers
between grants were completed after the end of the fiscal year.
Cause: During the year the Organization had new grants, but the payroll system was not
updated to reflect the changes.
Effect: Allocation of payroll costs to the federal award program may be inaccurate or not
properly documented.
Questioned costs: n/a
Context: The Organization did not maintain supporting documentation for payroll costs that
were reallocated to a new grant. These costs were reallocated from the Health Center Program
and from the Healthy Start Initiative funding to the new award.
Repeat Finding: No
Recommendation: The Organization should review and update the policies and procedures
regarding payroll costs. Additionally, the Organization should provide training to staff on grant
tracking and documentation.
Views of Responsible Officials: Management agrees with this finding. Staff will be trained to
ensure future changes in payroll costs are updated timely within the system and documentation
maintained.