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Audit (A-02-11-02018)

Sunset Park Health Council Did Not Always Claim Recovery Act Costs in Accordance With Federal Requirements

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The Health Center Program, administered by the Health Resources and Services Administration (HRSA), provides grants to nonprofit private or public entities that serve designated medically underserved populations and areas, as well as vulnerable populations of migrant and seasonal farm workers, the homeless, and residents of public housing. Under the American Recovery and Reinvestment Act of 2009 (Recovery Act), P.L. No. 111-5, enacted February 17, 2009, HRSA received $2.5 billion, $2 billion of which was to expand the Health Center Program.

Sunset Park Health Council (Sunset Park), a nonprofit organization, is the governing board for Lutheran Family Health Centers. Sunset Park received approximately $4.2 million awarded by HRSA during calendar years 2009 through 2011, of which Sunset Park claimed $2.9 million.

We found that Sunset Park did not always claim Recovery Act costs that were allowable under the terms of the grant and applicable Federal requirements. Specifically, Sunset Park claimed unallowable salary costs totaling $905,000 for employees whose salaries were charged to one of Sunset Park's IDS Recovery Act grants (grant number H8BCS12379) but for whom Sunset Park did not maintain personnel activity reports.

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