Finding Text
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster and Health Center Infrastructure Support Assistance Listing Number: 93.526 Federal Award Identification Number: C8ECS44566-01 Award Periods: September 15, 2021 ? September 14, 2024 Type of Finding: Compliance and material weakness in internal control over compliance Criteria: ? 200.458 Pre-award costs are those incurred prior to the effective date of the Federal award or subaward directly pursuant to the negotiation and in anticipation of the Federal award where such costs are necessary for efficient and timely performance of the scope of work. Such costs are allowable only to the extent that they would have been allowable if incurred after the date of the Federal award and only with the written approval of the Federal awarding agency. If charged to the award, these costs must be charged to the initial budget period of the award, unless otherwise specified by the Federal awarding agency or pass-through entity. Condition: The Center received reimbursement from the federal grant for costs that were incurred prior to the period of performance, but were not pre-approved by the awarding agency. Questioned Costs: $83,934 Context: Five (5) of five (5) transactions tested. Cause: There was a miscommunication within the Center as to whether the costs were pre-approved. Effect: The Organization may allocate unallowable costs to the federal grant. Repeat Finding: No. Recommendation: Management should refine its current process and controls for determining what costs are considered allowable so that it's clear who makes this determination and is communicated timely to the appropriate departments. Views of Responsible Officials: There is no disagreement with the audit finding.