Audit 335850

Criteria: 2 CFR 200.305(b) states for non-Federal entities other than states, payments methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition: In the current fiscal year, the Council received new federal money to provide teen pregnancy prevention services. In order to carry out those services, the Council enters into sub-awards with providers throughout its service territory. Providers submit their invoices to the Council monthly, and the Council submits a request for payment to the grantor for reimbursement. For services provided in June, the Council submitted the request but did not disburse the funds to the providers timely as to minimize the time between the recipient of the grant funds and the payment to the provider. Questioned Costs: None. Context: The Council provided services under a grant received directly from the U.S. Department of Health and Human Services. In order to provide the services, sub-awards are made with providers within the Council’s service territory. Providers were to be paid based off the invoices submitted to the Council. The Council submits a request for payment to the U.S. Department of Health and Human Services and once the funds are received, the Council is to pay its providers in a timely manner. Cause: Due to the program being new, the Council’s payment process has not been updated appropriately to ensure timely payment each and every month. Effect: The providers were not paid timely for services provided in June of 2024. Repeat Finding: This was not a repeat finding. Recommendation: We recommend updates in the payment process to ensure that all providers are paid timely after receipt of grant funds. Management Response: FHCCP acknowledges the finding and has taken immediate corrective action to ensure this issue does not recur. We have established a streamlined process for timely disbursement of funds to providers upon receipt of grant funds. Additionally, we have conducted a training session for staff involved in the payment process to ensure they are fully aware of the new procedures and timelines. A monitoring system has also been implemented to track the timeliness of payments and address any delays promptly. We are confident that these steps will prevent any future delays in payments to our providers. FHCCP remains committed to maintaining compliance with all grant requirements and ensuring the efficient and effective use of federal funds.

Criteria: 2 CFR 200.305(b) states for non-Federal entities other than states, payments methods must minimize the time elapsing between the transfer of funds from the United States Treasury or the pass-through entity and the disbursement by the non-Federal entity whether the payment is made by electronic funds transfer, or issuance or redemption of checks, warrants, or payment by other means. Condition: In the current fiscal year, the Council received new federal money to provide teen pregnancy prevention services. In order to carry out those services, the Council enters into sub-awards with providers throughout its service territory. Providers submit their invoices to the Council monthly, and the Council submits a request for payment to the grantor for reimbursement. For services provided in June, the Council submitted the request but did not disburse the funds to the providers timely as to minimize the time between the recipient of the grant funds and the payment to the provider. Questioned Costs: None. Context: The Council provided services under a grant received directly from the U.S. Department of Health and Human Services. In order to provide the services, sub-awards are made with providers within the Council’s service territory. Providers were to be paid based off the invoices submitted to the Council. The Council submits a request for payment to the U.S. Department of Health and Human Services and once the funds are received, the Council is to pay its providers in a timely manner. Cause: Due to the program being new, the Council’s payment process has not been updated appropriately to ensure timely payment each and every month. Effect: The providers were not paid timely for services provided in June of 2024. Repeat Finding: This was not a repeat finding. Recommendation: We recommend updates in the payment process to ensure that all providers are paid timely after receipt of grant funds. Management Response: FHCCP acknowledges the finding and has taken immediate corrective action to ensure this issue does not recur. We have established a streamlined process for timely disbursement of funds to providers upon receipt of grant funds. Additionally, we have conducted a training session for staff involved in the payment process to ensure they are fully aware of the new procedures and timelines. A monitoring system has also been implemented to track the timeliness of payments and address any delays promptly. We are confident that these steps will prevent any future delays in payments to our providers. FHCCP remains committed to maintaining compliance with all grant requirements and ensuring the efficient and effective use of federal funds.