Finding Text
Finding 2024-004 – Allowable Costs
Federal Agency: U.S. Department of Health and Human Services
Federal Program Name: Grants for New and Expanded Services Under the Health Center Program
Assistance Listing Number: 93.224/93.527
Federal Award Identification
Number: L2C42352-01-00
Award Periods: July 1, 2021 – June 30, 2023.
Type of Finding: Material weakness in internal control over compliance
Criteria:
§ 200.303(a) indicates non-federal entities must establish, document and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Condition:
Lack of supporting documentation demonstrating management's review and approval of costs prior to being charged to the grant and drawn down.
Questioned Costs:
None.
Context:
This condition impact all of the payroll transactions selected for testing.
Cause:
Unknown
Effect:
Incorrect payroll costs could be charged to the grant.
Repeat Finding:
No.
Recommendation:
We recommend the Organization maintain documentation demonstrating that the existing payroll review and approval process in place is functioning.
Views of Responsible Officials:
There is no disagreement with the audit finding.