Finding Text
Federal Agency: U.S. Department of Health and Human Services
AL Program: 93.224 Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care)
Federal Award No.: H8031624 and H8D36529
Area: Cash Management
Questioned Costs: $91,960
Criteria:
In accordance with entity’s strict draw down policy, all grant drawdowns shall be on a reimbursement basis and drawn down on an as needed basis based on actual allowable expenditures in order to minimize/eliminate the time elapsing between the transfer of the Federal awards and the disbursement of the fund. Further, drawdowns may not be made to cover future expenditures.
Condition:
Of three SF-425 reports tested, for two (or 66%), cumulative expenditures reported were based on cumulative drawdowns for which amounts were higher than the cumulative expenditures per the underlying accounting records. As KCHC is on a strict reimbursement basis, the variance of $91,960 is questioned.
Cause:
KCHC did not follow its grant draw down reimbursement policy and monitoring controls over compliance with applicable cash management requirements.
Effect:
KCHC is in noncompliance with the cash management requirement and questioned costs of $91,960 result.
Finding No. 2022-004, continued
Federal Agency: U.S. Department of Health and Human Services
AL Program: 93.224 Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care)
Federal Award No.: H8031624 and H8D36529
Area: Cash Management
Questioned Costs: $91,960
Recommendation:
Responsible personnel should monitor drawdowns based on actual allowable expenditures to substantiate compliance with its draw down policy.
Views of Responsible Officials:
Management agrees with the finding and has developed a plan to correct the finding. Refer to separate Corrective Action Plan.