Recovery Act Costs Claimed by SouthEast Lancaster Health Services, Inc., Were Generally Allowable
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The Health Resources and Services Administration awarded three grants to SouthEast Lancaster Health Services, Inc. (SouthEast) using Recovery Act funding. Of the $4.2 million that SouthEast claimed, $3.97 million was allowable under the terms of the grants and applicable Federal regulations. We could not determine the allowability of $238,000 for salaries and fringe benefits. However, SouthEast claimed unallowable costs of $5,000 related to the purchase of equipment. In addition, SouthEast did not always make timely payments to vendors, and it reported some drawdowns and disbursements incorrectly.
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