Finding Text
Missing Documentation to Support Payroll Authorizations (prior year 2019-101, not testable during 2020) (initially reported 2019)
Assistance Listing Number: 93.224, 93.527 and 93.498
Name of Federal Agency: Department of Health and Human Services, HRSA
Program Title: 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 and COVID-19 Provider Relief Fund
Compliance Requirement: Allowable Activities and Costs
Pass-through Entity: N/A
Federal Grant/Contract Number and Grant Year: H80CS06452-15 (2020), H80CS06452-16 (2021), COVID-19 ARP H8FCS40324 -01(2021) and COVID-19 Provider Relief Fund (2020)
Finding Type: Significant Deficiency in Internal Control
Known Questioned Costs: $0
Condition: The Organization could not provide one salary authorization form for sample selection of 40 employees under ALN #93.224 and 93.527 Health Care Center. The Organization could not provide one salary authorization form for sample selection of eight employees under ALN #93.498 COVID-19 Provider Relief Fund.
Criteria: 2 CFR section 200.303 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Under compliance requirements for allowable activities and costs, management should ensure that costs can be supported by underlying accounting documentation.
Cause: Filing errors resulting in staff being unable to provide the requested authorizations.
Effect: The Organization would not be able to provide the related documentation to support allowable activities and costs under the program which could lead to a loss of grant funding.
Recommendation: The Organization should put in a process to appropriately retain documentation to support allowable activities and costs under applicable grant programs.
Views of Responsible Officials and Planned Corrective Action: The Organization continues to engage the consulting services of a professional certified accounting firm. The Organization has hired a new Chief Financial Officer, as of March 2022, as well as additional supporting staff within the finance department. The Organization will implement additional review procedures related to the salary authorization forms to verify accuracy of the information and review our procedures related to retention of documentation. The Organization will consider implementing additional procedures associated with employees agreeing to the salary as well as specifically identifying the revenue sources (e.g. specific grants, local funds, etc.) when applicable. The Organization implemented this corrective action during fiscal year 2023.