Finding 1132632 (2021-006)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2021
Accepted
2025-04-29
Audit: 354872
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

  • 556177 2021-003
    Material Weakness Repeat
  • 556178 2021-004
    Material Weakness Repeat
  • 556179 2021-005
    Material Weakness Repeat
  • 556180 2021-006
    Material Weakness Repeat
  • 556181 2021-007
    Material Weakness Repeat
  • 556182 2021-003
    Material Weakness Repeat
  • 556183 2021-004
    Material Weakness Repeat
  • 556184 2021-005
    Material Weakness Repeat
  • 556185 2021-006
    Material Weakness Repeat
  • 556186 2021-007
    Material Weakness Repeat
  • 556187 2021-003
    Material Weakness Repeat
  • 556188 2021-004
    Material Weakness Repeat
  • 556189 2021-005
    Material Weakness Repeat
  • 556190 2021-006
    Material Weakness Repeat
  • 556191 2021-007
    Material Weakness Repeat
  • 1132619 2021-003
    Material Weakness Repeat
  • 1132620 2021-004
    Material Weakness Repeat
  • 1132621 2021-005
    Material Weakness Repeat
  • 1132622 2021-006
    Material Weakness Repeat
  • 1132623 2021-007
    Material Weakness Repeat
  • 1132624 2021-003
    Material Weakness Repeat
  • 1132625 2021-004
    Material Weakness Repeat
  • 1132626 2021-005
    Material Weakness Repeat
  • 1132627 2021-006
    Material Weakness Repeat
  • 1132628 2021-007
    Material Weakness Repeat
  • 1132629 2021-003
    Material Weakness Repeat
  • 1132630 2021-004
    Material Weakness Repeat
  • 1132631 2021-005
    Material Weakness Repeat
  • 1132633 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