HEALTH EDUCATION LEARNING PROJECT

Finding 2024-001: Allowable costs – Significant deficiency in internal controls over compliance. HIV Prevention Activities Health Department Based ALN 93.940Criteria: Uniform Guidance requires all cost be adequately documented and supported. Condition: During allowable cost testing for federal grants, 1 out of 25 payroll transactions tested had a billing error. Cause: Turnover in the Organization led to an incorrect payroll report being used to populate the grant billing. Effect: The Organization’s reporting of time and effort was not fully documented, in accordance with internal control over compliance procedures and internal controls failed to identify the error in a timely manner. Questioned costs: None. The grant billing error fell under the grant’s 10% budget change threshold and the Organization recalculated excess supply costs not previously billed to the grant. Recommendation: Management should design and implement controls to ensure the amount charged to the grant agrees to the payroll register. Management’s response: See corrective action plan.