Ineffective Controls Over the Cash Management Requirement
Condition
Community Health Concern, Inc. (“CHC”) did not minimize the times between drawdowns and disbursements
of Federal funds in accordance with Federal regulations. There were three cash drawdowns made by
management that were at least tw...
Ineffective Controls Over the Cash Management Requirement
Condition
Community Health Concern, Inc. (“CHC”) did not minimize the times between drawdowns and disbursements
of Federal funds in accordance with Federal regulations. There were three cash drawdowns made by
management that were at least two months (60 days) in advance of actual expenditures or immediate
requirement needed for payment.
Management’s Views:
Management concurs with the audit findings and will implement various steps that will strengthen our
internal control processes to mitigate any potential cash drawdown noncompliance in the future.
Corrective Action Plan:
In response to the Cash Management finding, the following actions will be implemented to ensure compliance
with federal grant guidelines and to maintain transparency and accountability, CHC will:
1. Seek HRSA Guidance
• In situations that are out of the ordinary or not explicitly covered by existing grant guidelines,
the Director of Finance or his/her designee will seek guidance from the Health Resources and
Services Administration (HRSA).
• This step ensures that all actions taken are compliant with HRSA’s grant guidelines,
2. Consult the External Auditor
• For additional guidance and to ensure proper procedure, the Director of Finance or his/her
designee will consult with the external auditor.
• If HRSA guidance is available, it will be shared with the external auditor to confirm that all
steps align with federal requirements and best practices.
3. Continually Communicate and Engage with the Finance Committee and the Board of Directors
• Ongoing communication and engagement with the Finance Committee and the Board of
Directors will be maintained.
• Regular updates will be provided on the status of grant fund requests, drawdowns, and any
guidance received from HRSA or the external auditor.
• This practice ensures that the Finance Committee and the Board of Directors are fully
informed and can provide oversight and support as needed.
Anticipated Date of Completion:
Management has implemented approximately 85% of the strategies described in the Plan above.
Management believes by implementing these actions, the compliance with federal grant guidelines will be
enhanced to ensure transparency to the financial operations as well as maintain robust oversight by involving
key stakeholders in the process. Management anticipates the successful completion date for the entire
Plan to be no later than August 31st, 2024.
Contact Person:
For inquiries regarding this finding, please contact Benjo Reyes at BenjoR@CamillusHealth.org who is
responsible for the corrective actions.