Audit 292390

Finding Type: Nonmaterial noncompliance related to cash management Information on the Federal Program: Program Name: Affordable Care Act (ACA) Grants for Capital Development in Health Centers (AL 93.526) Federal Awards Project Title: Health Center Infrastructure Support Award Period: September 15 2021- September 14, 2024 Award Number: 1 C8ECS43818-01 Agency: U.S. Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA) Criteria: According to the terms and conditions of the award, each budget has a Federal Percentage Share based upon the award amount and the total allowable costs. Grant funds can only be drawn down from the Payment Management System (PMS) as allowable costs are incurred. Unless otherwise authorized, draw down should be done in the same proportion as the grant is to total project costs in the approved budget. Condition: In a sample of three of nine cash draw downs from PMS, each of the three transactions tested were drawn in a proportion in excess of the Federal Percentage Share as required by the terms and conditions of the award. Cause: The Organization experienced a transition in management positions during the year and did not thoroughly understand the specified terms and conditions of the award. Effect: The Organization may draw down funding in a proportion greater than is allowed and if the project does not get completed, it 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 Type: Nonmaterial noncompliance related to cash management Information on the Federal Program: Program Name: Affordable Care Act (ACA) Grants for Capital Development in Health Centers (AL 93.526) Federal Awards Project Title: Health Center Infrastructure Support Award Period: September 15 2021- September 14, 2024 Award Number: 1 C8ECS43818-01 Agency: U.S. Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA) Criteria: According to the terms and conditions of the award, each budget has a Federal Percentage Share based upon the award amount and the total allowable costs. Grant funds can only be drawn down from the Payment Management System (PMS) as allowable costs are incurred. Unless otherwise authorized, draw down should be done in the same proportion as the grant is to total project costs in the approved budget. Condition: In a sample of three of nine cash draw downs from PMS, each of the three transactions tested were drawn in a proportion in excess of the Federal Percentage Share as required by the terms and conditions of the award. Cause: The Organization experienced a transition in management positions during the year and did not thoroughly understand the specified terms and conditions of the award. Effect: The Organization may draw down funding in a proportion greater than is allowed and if the project does not get completed, it 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.