Finding Text
Administrative Fees in Excess of 10% of Federal Award. Assistance Listing Number: 93.917 Program Title: HIV Care Formula Grants (Ryan White HIV/AIDS Program Part B) Pass-through Entity: Mississippi State Department of Health and United Way of Central Alabama Contract Number and Year: SG-1111-R3 2022 and RW-FHHS-2122 2022 Finding Type: Significant Deficiency Known Questioned Costs: $15,360 Criteria - 2 CFR 200.303 requires nonfederal entities receiving federal awards to 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 federal awards. The aggregate of expenditures for administrative expenses by subrecipients may not exceed 10% of the total amount of grant funds subawarded by the state (without regard to whether particular entities spend more than 10% for such purposes) (42 USC 300ff-28(b)(3)(B)). Condition - The Organization reviewed and signed off on reimbursement requests prior to submission for reimbursement. However, the reviewer did not catch requests for reimbursement of administrative fees in excess of 10% of subawards. Cause - The Organization reviewed and signed off reimbursement requests prior to submission for reimbursement. However, the reviewer did not catch requests for reimbursement in excess of 10% of subawards as formulas in Excel grant budget worksheets were overwritten with manual numbers, eliminating the calculation of check figures for total allowable administrative fees, administrative fees reimbursed to date and balance of allowable administrative fees for reimbursement. Effect - Administrative fees in excess of the 10% limit were submitted for reimbursement in error. Recommendation - The Organization should strengthen internal controls for oversight and approval to ensure the accuracy of allowable administrative fees per grant budgets. Views of Responsible Officials - The CFO has implemented procedures to review and monitor grant administrative expenditures and budgets.