Unity Health Care, Inc., Claimed Some Unallowable Costs Against Recovery Act Grants

Of the $3.2 million in claimed costs that we reviewed, $2.2 was allowable under the terms of the grants and applicable Federal regulations. However, Unity claimed unallowable costs of $80,000 for a financial consultant. In addition, we did not determine the allowability of $993,000 in salary and fringe benefit costs because Unity's documentation did not include personnel activity reports to reflect the required after-the-fact distribution of salaries.