Finding 1132115 (2021-006)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2021
Accepted
2025-04-23
Audit: 354288
Organization: Island Health, Inc. (MA)
Auditor: Cohnreznick LLP

AI Summary

  • Core Issue: The Center lacks proper management review and approval for cash drawdowns, leading to potential inaccuracies.
  • Impacted Requirements: This finding violates federal guidelines for managing grant funds as outlined in §200.305 and 2 CFR 200.302 and 200.303.
  • Recommended Follow-Up: Establish written procedures for reviewing all drawdowns to ensure they are accurate and properly documented.

Finding Text

Finding 2021-006: Cash Management - Material Weakness Grantor: U.S. Department of Health and Human Services Federal Program Names: Health Center Program Cluster: Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) COVID-19 Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) Grants for New and Expanded Services under the Health Center Program Federal Assistance Listing Numbers: 93.224 and 93.527 Federal Award Identification Number and Year: H80CS26638 - 2020 and 2021, H8DCS35487 - 2020, H8CCS34364 - 2020, H8ECS38373 - 2020, and H8F40829 - 2021 Criteria In accordance with §200.305, Federal payment, grantees and subgrantees that receive grant funds are responsible for maintaining controls regarding the management of federal program funds under the Uniform Guidance in 2 CFR 200.302 and 200.303. Condition The Center's drawdowns did not illustrate review and approval by management. Cause The Center did not have adequate controls to ensure drawdowns were properly approved and such approval is documented. Effect The condition may lead to inaccurate or improper drawdowns. Questioned Costs None. Context We selected seven drawdowns for testing of cash management. We noted there was no formal approval or evidence of review for these drawdowns. Identification of Repeat Finding Yes, see finding 2020-006. Recommendation The Center should develop written procedures to review all drawdowns that occur in order to ensure accuracy. Views of Responsible Officials Management and the Board of Directors agree with the finding and will implement additional controls to ensure there is formal evidence of review being performed.

Categories

Cash Management HUD Housing Programs Material Weakness

Other Findings in this Audit

  • 555670 2021-003
    Material Weakness Repeat
  • 555671 2021-004
    Material Weakness Repeat
  • 555672 2021-005
    Material Weakness Repeat
  • 555673 2021-006
    Material Weakness Repeat
  • 555674 2021-007
    Material Weakness Repeat
  • 555675 2021-003
    Material Weakness Repeat
  • 555676 2021-004
    Material Weakness Repeat
  • 555677 2021-005
    Material Weakness Repeat
  • 555678 2021-006
    Material Weakness Repeat
  • 555679 2021-007
    Material Weakness Repeat
  • 555680 2021-003
    Material Weakness Repeat
  • 555681 2021-004
    Material Weakness Repeat
  • 555682 2021-005
    Material Weakness Repeat
  • 555683 2021-006
    Material Weakness Repeat
  • 555684 2021-007
    Material Weakness Repeat
  • 1132112 2021-003
    Material Weakness Repeat
  • 1132113 2021-004
    Material Weakness Repeat
  • 1132114 2021-005
    Material Weakness Repeat
  • 1132116 2021-007
    Material Weakness Repeat
  • 1132117 2021-003
    Material Weakness Repeat
  • 1132118 2021-004
    Material Weakness Repeat
  • 1132119 2021-005
    Material Weakness Repeat
  • 1132120 2021-006
    Material Weakness Repeat
  • 1132121 2021-007
    Material Weakness Repeat
  • 1132122 2021-003
    Material Weakness Repeat
  • 1132123 2021-004
    Material Weakness Repeat
  • 1132124 2021-005
    Material Weakness Repeat
  • 1132125 2021-006
    Material Weakness Repeat
  • 1132126 2021-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $1.03M
93.224 Health Center Program (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care $600,236
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $29,517
93.461 Covid-19-Claims Reimbursement for the Uninsured Program and the Covid-19 Coverage Assistance Fund $12,720