ADVOCATES FOR A HEALTHY COMMUNITY INC

Grants for Capital Development in Health Centers - Assistance Listing No. 93.526 U.S. Department of Health and Human Services Award Criteria or Specific Requirement - Activities Allowed/Unallowed and Cost Principles (45 CFR 75.403) Condition - The Organization did not use grant funds under this award for allowable costs as defined within the grant agreement. Questioned Costs - $1,047,063 Context - The Organization drew down grant funds under this award and used the funds for expenditure reimbursement for salaries and wages which is not an allowable expenditure under the award. The drawdown had originally been intended to be requested under a different award in which reimbursement for salary and wages expenditures was allowable. The error in drawdown of funds had not been noted by management until the auditor notified them of the error which was identified during financial statement …

Corrective action: February 21, 2023 To Whom It May Concern: RE: Grants for Capital Development in Health Centers Assistance Listing # 93.526, Finding 2022-002 Corrective Action Plan During our fiscal year 2022 audit, the Organization drew down grant funds under this award and spent them on expenditures that were not allowable. This was a clerical error as finance staff thought they were drawing down funds under the Community Health Center grant instead of this capital grant. The draw was used to pay salaries instead of capital items that this grant was intended for. We have self-reported this issue to HRSA and have been approved to transfer these funds to the appropriate award so they could be spen…