Finding 1152463 (2022-007)

-
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2025-09-09

AI Summary

  • Core Issue: The Organization has not collateralized cash balances exceeding insured amounts, leaving $11,685,898 uninsured.
  • Impacted Requirements: This violates Uniform Guidance 2 CFR § 200.305(b)(7), which mandates that advance Federal funds be deposited in insured accounts.
  • Recommended Follow-Up: Establish a cash collateralization agreement with the financial institution to protect against custodial credit risk.

Finding Text

Finding 2022 – 007: Cash Collateralization Criteria: Uniform Guidance 2 CFR § 200.305(b)(7) requires advance payments of Federal funds to be deposited and maintained in insured accounts whenever possible. Condition: During our review of the Organization’s cash, it was noted that as of September 30, 2022, they have not collateralized cash balances in excess of the amounts insured by the Federal Deposit Insurance Corporation. Cash balances of $11,685,898 were uninsured at September 30, 2022. Unearned revenue was reported at approximately $10,704,037 which includes advance payments of Federal funds. Questioned Costs: None. Cause: The Organization has not entered into a cash collateralization agreement with their financial institution. Effect: The Organization is not in compliance with Uniform Guidance 2 CFR § 200.305(b)(7) as not all cash balances received in advance from the funding agency were adequately insured or collateralized and were exposed to custodial credit risk in the event of a bank failure. Recommendation: We recommend the Organization enter into a cash collateralization agreement with their financial institution to ensure that all amounts related to grant agreements and awards received in advance are not exposed to custodial credit risk in the event of a bank failure. Views of Responsible Officials: See the corrective action plan that accompanies the schedule of findings and questioned costs.

Categories

Cash Management

Other Findings in this Audit

  • 576013 2022-003
    Material Weakness Repeat
  • 576014 2022-003
    Material Weakness Repeat
  • 576015 2022-004
    Material Weakness Repeat
  • 576016 2022-004
    Material Weakness Repeat
  • 576017 2022-005
    Material Weakness Repeat
  • 576018 2022-005
    Material Weakness Repeat
  • 576019 2022-006
    - Repeat
  • 576020 2022-006
    - Repeat
  • 576021 2022-007
    -
  • 576022 2022-007
    -
  • 1152455 2022-003
    Material Weakness Repeat
  • 1152456 2022-003
    Material Weakness Repeat
  • 1152457 2022-004
    Material Weakness Repeat
  • 1152458 2022-004
    Material Weakness Repeat
  • 1152459 2022-005
    Material Weakness Repeat
  • 1152460 2022-005
    Material Weakness Repeat
  • 1152461 2022-006
    - Repeat
  • 1152462 2022-006
    - Repeat
  • 1152464 2022-007
    -

Programs in Audit

ALN Program Name Expenditures
93.U01 Title V, Urban Indian Health Services $1.14M
93.933 Demonstration Projects for Indian Health $568,844
93.800 Organized Approaches to Increase Colorectal Cancer Screening $14,916
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $9,834
93.217 Family Planning Services $6,840