Finding 620350 (2022-001)

-
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-09-20
Audit: 49538
Organization: Nevada Urban Indians, Inc. (NV)

AI Summary

  • Core Issue: Improper allocation of costs led to excess charges of $19,323.11 to the 4-in-1 Program.
  • Impacted Requirements: Violated 2 CFR Part 200, Subpart E regarding allocable costs, as expenses benefiting multiple programs were not correctly distributed.
  • Recommended Follow-Up: Enhance procedures to ensure accurate cost allocation and maintain supporting documentation for any permissible cost shifts between grants.

Finding Text

FINDING #2022-001 U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Passed through Indian Health Services Urban Indian Health Services ? 4-in-1 Programs ? CFDA #93.193 Condition: Costs benefitting other programs (in addition to the 4-in-1 Program) were not properly allocated to those benefitted programs, resulting in excess charges to the 4-in-1 Program. Criteria: 2 CFR Part 200, Subpart E ? Cost Principles at 200.405 ? Allocable Costs (c) states, in part, that costs allocable to a particular Federal program may not be charged to other Federal programs ?? to overcome fund deficiencies ? or for other reasons.? However, shifting costs that are allowable under two or more awards is permissible when done in accordance with applicable states, regulations, or award conditions. Cause: The end of the approved budget period (3/31/22) was approaching and the Organization had unspent funds remaining in the 4-in-1 Program. Effect: Costs benefitting other programs (in addition to the 4-in-1 Program) were not properly allocated to those benefitted programs, resulting in excess charges to the 4-in-1 Program. Questioned Costs: $19,323.11 Context: Out of a randomly selected sample of 25 items with a monetary value of $40,814, we noted 8 items where the supporting documentation indicated that Federal award programs, in addition to the 4-in-1 Program were benefitted from the cost incurred; however, the 4-in-1 Program was disproportionately charged for these costs. Recommendation: We recommend that the Organization strengthen its procedures to assure that costs are properly allocated to the programs receiving the benefit of the cost. In those cases where it is deemed appropriate for the Organization to shift costs from one grant to another (2 CFR 200.405 (c) and (d)), the supporting documentation should support the change.

Categories

Questioned Costs Allowable Costs / Cost Principles

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.237 Special Diabetes Program for Indians_diabetes Prevention and Treatment Projects $258,395
93.193 Urban Indian Health Services $171,229
16.575 Crime Victim Assistance $87,960
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $55,394
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $29,998
16.588 Violence Against Women Formula Grants $8,921
93.933 Demonstration Projects for Indian Health $3,719
16.017 Sexual Assault Services Formula Program $2,693