Finding Text
Grantor: U.S. Department of Health and Human Services
Federal Program Names: Health Center Program Cluster: Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care), COVID-19 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
CFDA Numbers: 93.224 and 93.527
Criteria
A non-federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance and any costs incurred before the federal awarding agency or pass-through entity made the federal award that were authorized by the federal awarding agency or pass-through entity (2 CFR sections 200.308, 200.309 and 200.403 (h)).
Condition
There was no evidence of the Center's review and approval of the period of performance for expenditures during the year.
Cause
The Center did not have adequate controls to review period of performance to ensure all goods and services are appropriately included or excluded.
Effect
The Center may charge goods or services to the grant that are not within the grant's period of performance.
Questioned Costs
None.
Context
We selected 25 payroll transactions charged to the federal program to test controls over period of performance. Out of the 25 transactions tested, we noted 25 instances where there was no formal approval of the cost charged to the major program by evidence of a review signature on the labor reports. Additionally, we selected 3 nonpayroll transactions where all 3 instances did not have evidence of review.
Identification of Repeat Finding
Not a repeat finding.
Recommendation
The Center should develop written procedures to review all expenditures to ensure they are within the proper period of performance of the grant.
Views of Responsible Officials
Management and the Board of Directors agree with the finding and will implement additional controls to ensure there is formal evidence of approval over the period of performance for goods and services purchased under the grant.