Finding Text
Finding 2023.004: Allowable Costs/Activities Allowed or Unallowed -
Significant Deficiency
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 Cluster: 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: H80CS00053 - 2022 and 2023, H8FCS41422 -
2023
Criteria
In accordance with 2CFR 200.303(a), Internal Controls, a non-Federal entity must establish and
maintain effective internal control over the Federal award that provides reasonable assurance that
the non-Federal entity is managing the Federal award in compliance with Federal statutes,
regulations, and the terms and conditions of the Federal award. The specific allowability
requirements are unique to each Federal program, in accordance with the terms and conditions of
the Federal award pertaining to the program.
Condition
Charges to Federal awards for cash disbursements were not supported by illustration of proper
approval.
Cause
The Center’s internal controls over cash disbursements were not consistently followed to ensure
invoices were properly approved.
Effect or Potential Effect
Failure to ensure cash disbursements across programs have proper approval could result in noncompliance
with the grant requirements or unallowable costs being charged.
Questioned Costs
None
Context
A test of 25 cash disbursement transactions was performed and resulted in 13 instances where the
Center was unable to provide approved documentation. Our sample was a statistically valid sample.
Identification of Repeat Finding
This finding is not a repeat finding.
Recommendation
The Center should establish a system of internal controls to ensure that all cash disbursements are
properly approved.
Views of Responsible Officials and Planned Corrective Actions
Management agrees with the audit finding and will strengthen internal controls and accountability to
correct the deficiency. Management has prepared a Corrective Action Plan that outlines the
additional controls implemented.