Finding Text
Finding 2022-001 – Cash Management
Federal program and specific federal award
U.S. Department of Health and Human Services (HHS)
93.224 Consolidated Health Centers (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, Public Housing Primary Care, and School Based Health Centers); (HHS Community Health Center Program)
Type of Finding: Compliance and significant deficiency in internal control over compliance
Specific requirement-criteria
Under cash management of federal funds, when funded under the reimbursement method, funds reimbursed under a federal program should be paid or incurred by the Organization prior to the date for which reimbursement was requested, or within the program’s specified time frame.
Condition-context
In a sample of two request for federal fund draws (draws) under cash management, we noted that one draw included four voided checks that totaled $41,133. The voided checks had been reissued and included
on a subsequent draw request as well. Accordingly, the cash disbursements were mistakenly reimbursed twice. The organization was able to identify additional qualifying payroll expenses that occurred in the
months of April 2022, May 2022, and June 2022.
Cause
Due to open positions in the finance department, untimely reconciliation of expenses charged to the
grants, misstatements, intentional or unintentional, occurred during fiscal year 2022. During 2022, the Associated hired contract financial consultants to aid in the open positions and bring financial information up to date. The vacancies caused catch up to be completed by the contracted financial consultants.
Effect or potential effect
Risk that unapproved or unallowable expenditures are reimbursed by federal agency.
Questioned costs
None
Repeat finding
Yes, see finding 2021-002.