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North Carolina Department of Health and Human Services Did Not Always Claim Costs Under CDC Prevention and Public Health Fund Awards in Accordance with Federal Requirements

The State agency claimed costs under Federal fiscal years 2010 through 2013 Centers for Disease Control and Prevention (CDC), Prevention and Public Health Fund (PPHF), awards that were not always in accordance with Federal requirements. Of the 135 sample items with transactions totaling $3.43 million in our statistical sample, 126 totaling $3.4 million were allowable, but 9 totaling $27,000 were not. In addition, of the 156 subgrantee transactions totaling $847,000 in our judgmental sample, 152 totaling $824,000 were allowable, but 4 totaling $23,000 were not. The State agency claimed unallowable costs under CDC PPHF awards because it did not have adequate controls to ensure that all costs charged to the awards were allowable.

We recommended that the State agency (1) refund to the Federal Government the $50,000 in unallowable costs and (2) improve its controls, which would have saved an estimated $493,000 of costs charged to CDC PPHF awards, to ensure that costs charged to Federal awards comply with Federal requirements and that Federal funds are used efficiently and effectively to advance Federal award goals and objectives.

The State agency generally concurred with our recommendations and described the actions it would take to implement necessary corrective actions.

Filed under: Centers for Disease Control and Prevention