Finding Text
FINDING 2022-004 – Excess Compensation
MATERIAL WEAKNESS, MATERIAL NONCOMPLIANCE
Identification of the Federal Program:
U.S. Department of Health and Human Services
93.224/93.527 Health Center Program Cluster
Criteria:
The Center is only allowed reimbursement for amounts that are approved in the award agreement.
These amounts are also below the limits set by HRSA as allowable compensation.
Condition:
During our testing of payroll, we noted the Center requested reimbursement for two individuals in
excess of amounts approved in the budget justification and in excess of the annual limit of $203,700
established by HRSA for the year ended September 30, 2022.
Cause:
The Center did not have a formal process in place to ensure that amounts requested for
reimbursement complied with the annual salary limitations required by HRSA. Effect or Potential Effect:
Costs charged to federal awards did not conform to the allowability of cost provisions in 2 CFR Part
200, Subpart E, or the award agreement.
Questioned Costs:
$30,259
Context:
We selected 40 payroll items submitted for reimbursement during the year ended September 30,
2022. Two of 40 items selected were in excess of the annual salary limitations.
Repeat Finding:
No
Recommendation:
We recommend that all payroll reimbursement requests be reviewed prior to submission to ensure
that all amounts requested are below amounts approved per the grant agreement, and below annual
limitations as set by HRSA
View of Responsible Officials:
See accompanying Corrective Action Plan.