Finding Text
Finding: 2024-007 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, 2 CFR 200.305(b)(1)
Condition: Due to staff turnover, the Organization was unable to immediately provide proper documentation to support the fact that qualifying expenditures were made prior to making certain drawdowns of federal funds. No grant draws exceeded the cash needs for grant-related expenditures. However, failure to reconcile expenditures to federal grant draws, and failure to maintain such documentation, could result in advance draws.
Cause: The Organization did not maintain proper documentation of expenditures to support the drawdowns made,
Effect: Without proper controls over the reconciliation of expenditures to federal grant draws, drawdowns may occur for the incorrect amount, for the wrong period, and for costs that may not have been incurred.
Questioned Costs: None reported.
Context/Sampling: The finding appears to be a systemic issue.
Repeat Finding from Prior Year: No
Recommendation: It is recommended that management consider developing a contingency plan for when there is turnover in key personnel involved with the drawdown process of federal grants. As part of this plan, if changes need to occur to the primary internal control over drawdowns, those changes should be documented.
Views of Responsible Officials: The Organization understands the requirements to document expenditures prior to drawing down federal funds. Procedures will be established to ensure that federal grant expenditures are documented so that advance draws of federal funds do not occur.
Contact Person: Suzanne Freeman, CEO
Anticipated Date of Completion: October 31, 2025