Finding Text
Federal Agency: U.S. Department of Health and Human Services
Federal Program Title: Health Center Program Cluster
Assistance Listing Numbers: 93.224 and 93.527
Federal Award Identification Number and Year: H80CS00109-20; H80CS00109-21
Award Period: May 1, 2021 – April 30, 2022; May 1, 2022 – April 30, 2023
Type of Finding: Compliance and Significant Deficiency in Internal Control over Compliance
Criteria: Uniform Guidance § 200.430(h)(8)(i) indicates that the standards for documentation of personnel expenses are such that (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must:(i) Be supported by a system of internal control which provides reasonable assurance that the charges are accurate, allowable, and properly allocated;(ii) Be incorporated into the official records of the non-Federal entity and (iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity.
Condition: The Organization allocated payroll costs in a manner inconsistent with the personnel activity reports provided for the applicable employees and time periods selected for testing.
Questioned Costs: Unknown
Context: This condition occurred in four (4) of the forty (40) allowable cost transactions selected for testing within the health centers cluster major program, and represented three (3) different employees.
Effect: Inaccurate payroll costs may be charged to federal programs if the Organization does not consistently allocate payroll costs based on the personnel activity reports created.
Cause: Turnover within the finance department contributed to needing to reallocate certain payroll costs.
Repeat Finding: No.
Recommendation: We recommend that the Organization allocated payroll costs to grants in a manner that is consistent with the documentation contained within the personnel activity reports.
Views of responsible officials: There is no disagreement with this finding.