Finding Text
Finding: 2024-001 Cash Management – Federal Grants
Federal Programs: Department of Health and Human Services
Health Center Program Cluster
Assistance Listing No. - 93.224 and 93.527
Criteria: Cash Management, 45 CFR 75.305
Condition: During the year, the Organization made several advance draws of federal funds that were not disbursed in a timely manner for program expenditures. The Organization is required to minimize the time elapsing between the transfer of funds to the Organization from the U.S. Treasury and the issuance of payments for program purposes.
Cause: The Organization made draws of federal grant funds in advance of making the qualifying expenditures.
Effect: The Organization held federal funds for time periods in excess of one business day.
Questioned Costs: None reported.
Context/Sampling: The finding appears to be a systemic issue.
Repeat Finding from Prior Year: No
Recommendation: Efforts should be made to ensure advance draws of federal funds do not occur prior to the Organization making the related qualifying expenditures.
Views of Responsible Officials: The Organization understands the requirements to disburse federal funds in a timely manner. Procedures will be established to minimize the time elapsing between the transfer of funds to the Organization from the U.S. Treasury and the issuance of payments for program purposes by the Organization to ensure that advance draws of federal funds do not occur.
Contact Person: Donald Branum, CEO
Anticipated Date of Completion: October 31, 2024