Allowability of Recovery Act Costs Claimed by Grace Hill Neighborhood Health Centers, Inc., for the Period March 27, 2009, Through March 26, 2011

Costs claimed by Grace Hill Neighborhood Health Centers, Inc. (Grace Hill), under an Increased Demand for Services grant were generally allowable pursuant to applicable Federal regulations and the terms of the grant. The Health Resources and Services Administration awarded this grant to Grace Hill using American Recovery and Reinvestment Act of 2009 funding in support of the Health Center Program. However, Grace Hill claimed unallowable costs totaling $65,000 for drawdown amounts that were not in accordance with Federal requirements and the terms of the grant and for incorrectly claimed expenditures.