Finding Number: 2022-001 Finding Type: Material weakness over compliance related to cash management Information on the Federal Program: Program Name: Consolidated Health Centers (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) (AL 93.224) Federal Awards Project Title: Capital Assistance for Disaster Response and Recovery Efforts Award Period: September 1, 2020 - August 31, 2023 Award Number: 6 C14CS39951-01 Agency: U.S. Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA) Program Name: COVID-19 Affordable Care Act (ACA) Grant for New and Expanded Services Under the Health Center Program (AL 93.527) Federal Awards Project Title: FY 2023 Expanding COVID-19 Vaccination Award Period: December 1, 2022 - May 31, 2023 Award Number: 1 H8GCS47793-01 Agency: U.S. Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA) Criteria: The Uniform Guidance ?200.305(b)(1) requires that advance payments to a non-Federal entity must be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the non-Federal entity in carrying out the purpose of the approved program or project. The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the non-Federal entity for direct program or project costs and the proportionate share of any allowable indirect costs. Condition: The Organization drew down the FY 2023 Expanding COVID-19 Vaccination grant funds in full upon receipt of the award in the amount of $100,048 in advance of incurring federal expenses. The Organization incurred allowable expenses of $38,940 through December 31, 2022. During 2023, management worked with HRSA and was able to submit a budget revision which was approved by HRSA and allowed the Organization to allocate additional expenses incurred in December 2022 in the amount of $61,108 to the grant. Additionally, the Organization had a construction project during 2022 which was primarily funded by the Capital Assistance for Disaster Response and Recovery Efforts grant. During 2022, the Organization drew down the grant award based on 100% of the incurred allowable costs of the project rather than proportionate share of the grant to the total project costs in the approved budget as required by the Uniform Guidance. Cause: The Organization experienced a transition in management positions during the year and did not thoroughly understand the specified grant terms and conditions. Effect: The Organization may draw down funding in a proportion greater than is allowed and for a project that does not get completed which could result in the return of funds with potential interest. Questioned Costs: None Repeat Finding: No Recommendation: Management should provide additional training to individuals responsible for monitoring grant compliance, reinforce the importance of reviewing all grant agreement provisions, and implement a system of processes and controls for tracking compliance with all specific grant terms and conditions. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding. The Organization will modify procedures as appropriate and provide additional training and education as recommended.
Finding Number: 2022-001 Finding Type: Material weakness over compliance related to cash management Information on the Federal Program: Program Name: Consolidated Health Centers (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) (AL 93.224) Federal Awards Project Title: Capital Assistance for Disaster Response and Recovery Efforts Award Period: September 1, 2020 - August 31, 2023 Award Number: 6 C14CS39951-01 Agency: U.S. Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA) Program Name: COVID-19 Affordable Care Act (ACA) Grant for New and Expanded Services Under the Health Center Program (AL 93.527) Federal Awards Project Title: FY 2023 Expanding COVID-19 Vaccination Award Period: December 1, 2022 - May 31, 2023 Award Number: 1 H8GCS47793-01 Agency: U.S. Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA) Criteria: The Uniform Guidance ?200.305(b)(1) requires that advance payments to a non-Federal entity must be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the non-Federal entity in carrying out the purpose of the approved program or project. The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the non-Federal entity for direct program or project costs and the proportionate share of any allowable indirect costs. Condition: The Organization drew down the FY 2023 Expanding COVID-19 Vaccination grant funds in full upon receipt of the award in the amount of $100,048 in advance of incurring federal expenses. The Organization incurred allowable expenses of $38,940 through December 31, 2022. During 2023, management worked with HRSA and was able to submit a budget revision which was approved by HRSA and allowed the Organization to allocate additional expenses incurred in December 2022 in the amount of $61,108 to the grant. Additionally, the Organization had a construction project during 2022 which was primarily funded by the Capital Assistance for Disaster Response and Recovery Efforts grant. During 2022, the Organization drew down the grant award based on 100% of the incurred allowable costs of the project rather than proportionate share of the grant to the total project costs in the approved budget as required by the Uniform Guidance. Cause: The Organization experienced a transition in management positions during the year and did not thoroughly understand the specified grant terms and conditions. Effect: The Organization may draw down funding in a proportion greater than is allowed and for a project that does not get completed which could result in the return of funds with potential interest. Questioned Costs: None Repeat Finding: No Recommendation: Management should provide additional training to individuals responsible for monitoring grant compliance, reinforce the importance of reviewing all grant agreement provisions, and implement a system of processes and controls for tracking compliance with all specific grant terms and conditions. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding. The Organization will modify procedures as appropriate and provide additional training and education as recommended.
Finding Number: 2022-001 Finding Type: Material weakness over compliance related to cash management Information on the Federal Program: Program Name: Consolidated Health Centers (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) (AL 93.224) Federal Awards Project Title: Capital Assistance for Disaster Response and Recovery Efforts Award Period: September 1, 2020 - August 31, 2023 Award Number: 6 C14CS39951-01 Agency: U.S. Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA) Program Name: COVID-19 Affordable Care Act (ACA) Grant for New and Expanded Services Under the Health Center Program (AL 93.527) Federal Awards Project Title: FY 2023 Expanding COVID-19 Vaccination Award Period: December 1, 2022 - May 31, 2023 Award Number: 1 H8GCS47793-01 Agency: U.S. Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA) Criteria: The Uniform Guidance ?200.305(b)(1) requires that advance payments to a non-Federal entity must be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the non-Federal entity in carrying out the purpose of the approved program or project. The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the non-Federal entity for direct program or project costs and the proportionate share of any allowable indirect costs. Condition: The Organization drew down the FY 2023 Expanding COVID-19 Vaccination grant funds in full upon receipt of the award in the amount of $100,048 in advance of incurring federal expenses. The Organization incurred allowable expenses of $38,940 through December 31, 2022. During 2023, management worked with HRSA and was able to submit a budget revision which was approved by HRSA and allowed the Organization to allocate additional expenses incurred in December 2022 in the amount of $61,108 to the grant. Additionally, the Organization had a construction project during 2022 which was primarily funded by the Capital Assistance for Disaster Response and Recovery Efforts grant. During 2022, the Organization drew down the grant award based on 100% of the incurred allowable costs of the project rather than proportionate share of the grant to the total project costs in the approved budget as required by the Uniform Guidance. Cause: The Organization experienced a transition in management positions during the year and did not thoroughly understand the specified grant terms and conditions. Effect: The Organization may draw down funding in a proportion greater than is allowed and for a project that does not get completed which could result in the return of funds with potential interest. Questioned Costs: None Repeat Finding: No Recommendation: Management should provide additional training to individuals responsible for monitoring grant compliance, reinforce the importance of reviewing all grant agreement provisions, and implement a system of processes and controls for tracking compliance with all specific grant terms and conditions. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding. The Organization will modify procedures as appropriate and provide additional training and education as recommended.
Finding Number: 2022-001 Finding Type: Material weakness over compliance related to cash management Information on the Federal Program: Program Name: Consolidated Health Centers (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) (AL 93.224) Federal Awards Project Title: Capital Assistance for Disaster Response and Recovery Efforts Award Period: September 1, 2020 - August 31, 2023 Award Number: 6 C14CS39951-01 Agency: U.S. Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA) Program Name: COVID-19 Affordable Care Act (ACA) Grant for New and Expanded Services Under the Health Center Program (AL 93.527) Federal Awards Project Title: FY 2023 Expanding COVID-19 Vaccination Award Period: December 1, 2022 - May 31, 2023 Award Number: 1 H8GCS47793-01 Agency: U.S. Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA) Criteria: The Uniform Guidance ?200.305(b)(1) requires that advance payments to a non-Federal entity must be limited to the minimum amounts needed and be timed to be in accordance with the actual, immediate cash requirements of the non-Federal entity in carrying out the purpose of the approved program or project. The timing and amount of advance payments must be as close as is administratively feasible to the actual disbursements by the non-Federal entity for direct program or project costs and the proportionate share of any allowable indirect costs. Condition: The Organization drew down the FY 2023 Expanding COVID-19 Vaccination grant funds in full upon receipt of the award in the amount of $100,048 in advance of incurring federal expenses. The Organization incurred allowable expenses of $38,940 through December 31, 2022. During 2023, management worked with HRSA and was able to submit a budget revision which was approved by HRSA and allowed the Organization to allocate additional expenses incurred in December 2022 in the amount of $61,108 to the grant. Additionally, the Organization had a construction project during 2022 which was primarily funded by the Capital Assistance for Disaster Response and Recovery Efforts grant. During 2022, the Organization drew down the grant award based on 100% of the incurred allowable costs of the project rather than proportionate share of the grant to the total project costs in the approved budget as required by the Uniform Guidance. Cause: The Organization experienced a transition in management positions during the year and did not thoroughly understand the specified grant terms and conditions. Effect: The Organization may draw down funding in a proportion greater than is allowed and for a project that does not get completed which could result in the return of funds with potential interest. Questioned Costs: None Repeat Finding: No Recommendation: Management should provide additional training to individuals responsible for monitoring grant compliance, reinforce the importance of reviewing all grant agreement provisions, and implement a system of processes and controls for tracking compliance with all specific grant terms and conditions. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding. The Organization will modify procedures as appropriate and provide additional training and education as recommended.