FAC Explorer

Finding 1156314 (2024-003)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
$1
Year
2024
Accepted
2025-09-29
Audit: 368602
Organization: Henry Ford Health System (MI)
Auditor: Deloitte & Touche

AI Summary

  • Core Issue: There is a material weakness in cash management controls, leading to overdrawn funds for the grant.
  • Impacted Requirements: Expenditures must be incurred before reimbursement requests, as per 2 CFR 200.305.
  • Recommended Follow-Up: Establish stricter controls to ensure accurate calculation of expenses for drawdowns.

Finding Text

Finding 2024-003 Material Weakness in Controls over Compliance and Material Noncompliance – Cash Management Federal Program: 93.137 Community Programs to Improve Minority Health Year: 2024 Federal Agency: Department of Health and Human Services Criteria – In accordance with 2 CFR 200.305 when non-federal entities are funded under the reimbursement method, expenditures should be incurred prior to the date of the reimbursement request. Condition/Perspective – There were four drawdowns made in relation to the fiscal year 2024 expenses for the grant. For two out of the four drawdowns, management erroneously drew down in excess of the expenses incurred. Cause – When requesting for drawdowns management erroneously used the cumulative expenses in the underlying spreadsheet rather than the periodic expenses which led to draw downs to be in excess of the expenses. Questioned Cost - $732,156 was over drawn. Effect – Drawing down in excess of the expenses incurred may result in the granting agency withholding future funding for this grant. Recommendation – Implement a more precise control to ensure that the underlying expense details that are used to make the drawdowns made are accurately calculated. View of Responsible Officials - See Corrective Action Plan

Corrective Action Plan

Finding 2024-003 Material Weakness in Controls over Compliance and Material Noncompliance – Cash Management Federal Program: 93.137 Community Programs to Improve Minority Health Year: 2024 Federal Agency: Department of Health and Human Services Condition – There were four drawdowns made in relation to the fiscal year 2024 expenses for the grant. For two out of the four drawdowns, management erroneously drew down in excess of the expenses incurred. Corrective Action Plan – Henry Ford Health agrees with this finding. As of August 31, 2025, the grant is in a net receivable position, so no adjustment is required. An additional level of review is being added to the drawdown process to improve the control environment and reduce the associated risk of error. Anticipated Completion Date – December 31, 2025. Contact Person – J. Douglas Clark, Senior Vice President and Chief Accounting Officer.

Categories

Questioned Costs Cash Management

Other Findings in this Audit

  • 1156311 2024-002
    Material Weakness Repeat
  • 1156312 2024-002
    Material Weakness Repeat
  • 1156313 2024-003
    Material Weakness Repeat
  • 1156315 2024-004
    Material Weakness Repeat
  • 1156316 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $43.58M
93.307 Minority Health and Health Disparities Research $728,097
93.143 Niehs Superfund Hazardous Substances_basic Research and Education $428,830
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $397,851
21.027 Coronavirus State and Local Fiscal Recovery Funds $375,899
93.137 Community Programs to Improve Minority Health $268,680
93.233 National Center on Sleep Disorders Research $264,326
93.185 Immunization Research, Demonstration, Public Information and Education Training and Clinical Skills Improvement Projects $258,630
93.380 The Cdc Public Health Cancer Genomics Program: Translating Research Into Public Health Practice $252,290
93.686 Ending the Hiv Epidemic: A Plan for America — Ryan White Hiv/aids Program Parts A and B $219,525
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $206,687
93.914 Hiv Emergency Relief Project Grants $172,638
93.279 Drug Use and Addiction Research Programs $160,154
16.575 Crime Victim Assistance $157,909
93.846 Arthritis, Musculoskeletal and Skin Diseases Research $149,821
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $137,638
93.353 22nd Century Cures Act - Beau Biden Cancer Moonshot $90,769
93.917 Hiv Care Formula Grants $78,463
93.003 Public Health and Social Services Emergency Fund $75,186
93.866 Aging Research $71,222
93.353 23rd Century Cures Act - Beau Biden Cancer Moonshot $58,654
93.859 Biomedical Research and Research Training $56,300
93.361 Nursing Research $53,168
93.840 Translation and Implementation Science Research for Heart, Lung, Blood Diseases, and Sleep Disorders $50,580
93.213 Research and Training in Complementary and Integrative Health $41,051
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $33,556
12.420 Military Medical Research and Development $31,656
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $31,552
93.092 Affordable Care Act (aca) Personal Responsibility Education Program $30,402
93.988 Cooperative Agreements for Diabetes Control Programs $29,543
93.103 Food and Drug Administration Research $28,917
93.226 Research on Healthcare Costs, Quality and Outcomes $28,028
93.865 Child Health and Human Development Extramural Research $24,195
93.395 Cancer Treatment Research $23,563
93.994 Maternal and Child Health Services Block Grant to the States $22,553
93.393 Cancer Cause and Prevention Research $22,519
93.855 Allergy and Infectious Diseases Research $22,412
93.493 Congressional Directives $22,175
93.RD Federal Contracts in Cancer Research $20,653
93.286 Discovery and Applied Research for Technological Innovations to Improve Human Health $18,966
93.172 Human Genome Research $18,066
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $16,924
93.136 Injury Prevention and Control Research and State and Community Based Programs $16,781
93.426 The National Cardiovascular Health Program $14,399
93.396 Cancer Biology Research $13,964
15.662 Great Lakes Restoration $13,715
93.398 Cancer Research Manpower $13,277
93.048 Special Programs for the Aging, Title Iv, and Title Ii, Discretionary Projects $11,530
93.113 Environmental Health $10,907
93.242 Mental Health Research Grants $10,456
93.110 Maternal and Child Health Federal Consolidated Programs $10,102
93.273 Alcohol Research Programs $9,225
93.778 Medical Assistance Program $8,438
93.080 Blood Disorder Program: Prevention, Surveillance, and Research $6,532
93.940 Hiv Prevention Activities Health Department Based $6,073
93.977 Sexually Transmitted Diseases (std) Prevention and Control Grants $3,688
93.394 Cancer Detection and Diagnosis Research $3,619
93.RD Department of Veteran Affairs $3,054
93.353 21st Century Cures Act - Beau Biden Cancer Moonshot $2,589
93.853 Extramural Research Programs in the Neurosciences and Neurological Disorders $1,799
93.310 Trans-Nih Research Support $1,079
93.839 Blood Diseases and Resources Research $587
93.867 Vision Research $-734
21.019 Coronavirus Relief Fund $-2,138
93.837 Cardiovascular Diseases Research $-8,254
93.283 Centers for Disease Control and Prevention Investigations and Technical Assistance $-8,336
93.838 Lung Diseases Research $-31,136