Finding Text
Finding 2023.003: Activities Allowed or Unallowed
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, COVID-19 Grants for New
and Expanded Services under the Health Center
Program
Federal Assistance Listing Numbers: 93.224 and 93.527
Criteria
Costs charged to federal funds by Health centers are required to comply with the cost principles at
45 CFR Part 75, Subpart E, and any other requirements or restrictions on the use of federal
funding. The Organization should be implementing and monitoring procedures to verify that the
correct amounts of payroll are being paid with the federal funds.
Condition
The amounts that the Organization was paying for a certain employee did not agree to the
Organization's payroll change form authorized by management.
Cause
The Organization did not have adequate internal controls in place to effectively ensure that all
employees were being paid the correct amounts.
Context
A test of 40 payroll transactions was performed and resulted in an instance where the Organization
was paying an employee an incorrect amount. Our sample was a statistically valid sample.
Questioned Costs
None
United Methodist Western Kansas Mexican-American Ministries, Inc.
Effect
The Organization did not comply with the appropriate rules and regulations as per the Uniform
Guidance.
Identification of Repeat Finding
No
Recommendation
The Organization should establish a system of internal controls to ensure that all employees are
being paid the correct amounts.
Views of Responsible Officials and Planned Corrective Actions
Management agrees with the audit finding and will strengthen internal controls and accountability to
correct the deficiency.