Corrective Action Plans

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Finding 2024-003: Cash Management Description of Finding: For recipients and subrecipients other than States, payment methods must minimize the time elapsing between the transfer of funds from the Federal agency or the pass-through entity and the disbursement of funds by the recipient or subrecipien...
Finding 2024-003: Cash Management Description of Finding: For recipients and subrecipients other than States, payment methods must minimize the time elapsing between the transfer of funds from the Federal agency or the pass-through entity and the disbursement of funds by the recipient or subrecipient regardless of whether the payment is made by electronic funds transfer or by other means. (2 CFR 200.305 (b)) Once funds are disbursed, i.e. transferred from LOCCS to the PHA’s bank account, the PHA must pay the applicable bill(s) within 3 business days after the deposit of the funds into the PHA’s bank account. (HUD Capital Fund Guidebook; Section 7.9) Statement of Concurrence or NonConcurrence: A sample of 4 drawdowns of capital funds from ELOCCs during the year identified 1 instance in which the Authority did not process payment to the vendor within 3 business days of receiving the funds. Corrective Action: The Authority processes a weekly check run for all payables. The timing of the receipts from ELOCCs missed the run and the invoice was added to the following weekly run. The authority will better monitor the receipt of funds and if necessary perform an additional check run to disburse the funds to the recipient. Name of Contact Person: Cheryl Thibeault Projected Completion Date: 09/30/2025
August 15, 2025 United States Department of Agriculture National Institute of Food and Agriculture Awards Management Division 805 Pennsylvania Ave Kansas City, MO 64105 Attention: Federal Audit Clearinghouse (FAC) Subject: Corrective Action Plan Submission – Finding #3 – Sovereign Equity Fund – Fisc...
August 15, 2025 United States Department of Agriculture National Institute of Food and Agriculture Awards Management Division 805 Pennsylvania Ave Kansas City, MO 64105 Attention: Federal Audit Clearinghouse (FAC) Subject: Corrective Action Plan Submission – Finding #3 – Sovereign Equity Fund – Fiscal Year End 12/31/2024 To Whom It May Concern: Funds were drawn down in advance under a reimbursement-based award, potentially violating federal cash management standards (2 CFR §200.305). As referenced and in relation to Finding #2 - Grant funds were drawn in excess of current expenditure needs, which resulted in the Organization being required to return the excess funds to the federal government. 2024-002 – Cash Management, 2 CFR 200.305 (Payment). Corrective Actions: • The Organization has returned the excess funds to the federal government.. • Revise internal procedures to include verification of expenditures for eligible and allowable expenses before initiating a draw request. • Develop a drawdown checklist and require supporting documentation for incurred costs, retain supporting documentation for all drawdowns. • Require Executive Director approval prior to all federal drawdowns. • Conduct training on federal reimbursement protocols for program and finance staff. Responsible Party: Grants Manager / Executive Director Target Completion Date: Policy update within 2 weeks; checklist rollout within 30 days Sincerely, Courtney Chavis Executive Director
View Audit 367244 Questioned Costs: $1
Corrective Actions Taken:
Corrective Actions Taken:
1. SCMRC revised its federal drawdown procedures in 2024 to require documented review and approval of all expenditures before submitting any drawdown request.
1. SCMRC revised its federal drawdown procedures in 2024 to require documented review and approval of all expenditures before submitting any drawdown request.
2. A Draw Down Request Workbook is now prepared by the Controller and reviewed against supporting documentation, including invoices, timecards, and purchase records.
2. A Draw Down Request Workbook is now prepared by the Controller and reviewed against supporting documentation, including invoices, timecards, and purchase records.
3. The CEO reviews and signs off on each Draw Down Request prior to submission.
3. The CEO reviews and signs off on each Draw Down Request prior to submission.
4. Completed Draw Down Request Workbooks are submitted to HRSA for prior approval and retained for audit purposes.
4. Completed Draw Down Request Workbooks are submitted to HRSA for prior approval and retained for audit purposes.
5. Internal drawdown audits are conducted monthly to confirm alignment with federal cash management standards.
5. Internal drawdown audits are conducted monthly to confirm alignment with federal cash management standards.
Corrective Action Plan:
Corrective Action Plan:
1. Updated drawdown procedures have been incorporated into SCMRC’s financial policies and will be re-reviewed annually.
1. Updated drawdown procedures have been incorporated into SCMRC’s financial policies and will be re-reviewed annually.
2. Refresher training on 2 CFR § 200.305 and internal drawdown requirements will be conducted by Q4 2025.
2. Refresher training on 2 CFR § 200.305 and internal drawdown requirements will be conducted by Q4 2025.
3. Results of monthly drawdown audits will be included in the Finance Committee compliance dashboard starting in September 2025.
3. Results of monthly drawdown audits will be included in the Finance Committee compliance dashboard starting in September 2025.
4. SCMRC will continue to require documented CEO approval on all federal drawdown submissions to ensure sustained internal control.
4. SCMRC will continue to require documented CEO approval on all federal drawdown submissions to ensure sustained internal control.
Corrective Actions Taken:
Corrective Actions Taken:
1. Implemented a 15-month rolling cash flow forecast in Q4 2024, updated weekly by the CEO and Controller in partnership with the contract accountant.
1. Implemented a 15-month rolling cash flow forecast in Q4 2024, updated weekly by the CEO and Controller in partnership with the contract accountant.
2. Finance staff monitor cash balances and disbursements at least twice per week to anticipate timing issues and support grant drawdown coordination.
2. Finance staff monitor cash balances and disbursements at least twice per week to anticipate timing issues and support grant drawdown coordination.
3. Established internal minimum balance thresholds and enabled low balance alerts to prevent overdrafts.
3. Established internal minimum balance thresholds and enabled low balance alerts to prevent overdrafts.
4. Consolidated underutilized accounts in 2025 and formalized contingency planning with SCMRC’s banking institution.
4. Consolidated underutilized accounts in 2025 and formalized contingency planning with SCMRC’s banking institution.
5. Conducted nonprofit cash flow management training for the CEO, Controller, and Board in Q2 FY25.
5. Conducted nonprofit cash flow management training for the CEO, Controller, and Board in Q2 FY25.
6. Included cash flow forecasting and liquidity discussions in monthly Finance Committee updates.
6. Included cash flow forecasting and liquidity discussions in monthly Finance Committee updates.
7. These improvements were reviewed during the 2025 HRSA Verification Site Visit and contributed to clearance of relevant conditions under Chapter 21 of the HRSA Health Center Compliance Manual.
7. These improvements were reviewed during the 2025 HRSA Verification Site Visit and contributed to clearance of relevant conditions under Chapter 21 of the HRSA Health Center Compliance Manual.
Corrective Action Plan:
Corrective Action Plan:
1. Continue weekly updates of the 12-month rolling cash flow forecast.
1. Continue weekly updates of the 12-month rolling cash flow forecast.
2. Maintain twice-weekly internal cash reviews to align disbursements with available cash and grant timing.
2. Maintain twice-weekly internal cash reviews to align disbursements with available cash and grant timing.
3. Monitor operating accounts against internal minimum thresholds and refine automated alerts as needed.
3. Monitor operating accounts against internal minimum thresholds and refine automated alerts as needed.
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