Finding Text
Finding 2022-003 Management?s review of program income Federal Programs: HIV Emergency Relief Project Grants CFDA No.: 93.914 Federal Agency: U.S. Department of Health and Human Services Federal Award Years: CFDA 93.914 ? March 1, 2021 ? February 28, 2022 March 1, 2022 ? February 28, 2023 Criteria Per 2 CFR section 280 (and as clarified by Health Resources and Services Administration Program Clarification Notice 15-03), program income, which is defined as all income directly generated by the supported activity, should be added to the federal award by the grantee, and subjected to the same terms, conditions, and regulations applicable to the federal award itself. Condition Regional One Health has an established control to review program income prior to submission to the granting agency, but did not effectively review program income prior to submission to the granting agency Cause and Effect We noted that internal controls had not been appropriately designed and implemented to mitigate the risk of noncompliance with federal program income requirements. The deficiency in internal controls over program income could result in Regional One Health failing to comply with the applicable compliance provisions. Questioned Cost None. Statistically Valid Sample The sample was not intended to be, and was not, a statistically valid sample. Identification of whether the audit finding is a repeat of a finding in the immediately prior audit. This is not a repeat finding. Recommendation We recommend that management reviews program income to ensure compliance with the applicable program income provisions and that evidence of the review is maintained. Management?s Response ROH will implement controls and processes to ensure program income calculations are manually reviewed and approved to ensure appropriateness under the grant and that evidence of review is maintained.