Finding Text
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Center Infrastructure Support ? Assistance Listing No. 93.526 Assistance Listing Number: 93.526 Federal Award Identification Number: C8ECS44566-01 Award Periods: September 15, 2021 ? September 14, 2024 Type of Finding: Significant deficiency in internal control over compliance Criteria: ? 200.400 Policy guide (b) The non-Federal entity assumes responsibility for administering Federal funds in a manner consistent with underlying agreements, program objectives, and the terms and conditions of the Federal award. Condition: The Center has an on-going construction project as of June 30, 2022, and performed a drawdown of its federal award based on one-hundred percent of the incurred allowable costs of the project rather than what the grant agreement requires, which is that drawdowns occur in the same proportion as the grant is to the total project costs in the approved budget. Questioned Costs: None. Context: One (1) of one (1) transaction tested. Cause: Oversight. Effect: The Organization may draw down funding in a proportion greater than is allowed and for a project that does not get completed. Repeat Finding: No. Recommendation: Management should provide additional training to individuals responsible for monitoring grant compliance, reinforce the important of reviewing all grant agreement provisions, and implement a system of processes and controls for tracking compliance with all specific grant terms and conditions. Views of Responsible Officials: There is no disagreement with the audit finding.