Family Health Centers, Inc., 2009 Recovery Act Grant Costs Were Supported Most of the Time

Family Health Centers, Inc. (FHC), claimed expenditures of $1.76 million for the Capital Improvement Program grant and $701,000 for the Increased Demand for Services (IDS) grant that were allowable under the terms of the grants and applicable Federal regulations. However, we could not determine whether the remaining $119,000 that FHC charged to its IDS grant as salary and fringe benefit costs was allowable. In claiming these potentially unallowable expenditures, FHC did not follow its own procedures regarding time-and-attendance approval. In fiscal year 2009, FHC was awarded $2.6 million under the American Recovery and Reinvestment Act of 2009 to remodel a health center.