Finding Text
2024-001 Cash Management – WIC Reimbursement to Member Counties Prior Year Finding Number: N/A Year of Finding Origination: 2024 Type of Finding: Internal Control Over Compliance and Compliance Severity of Deficiency: Significant Deficiency and Other Matter Federal Agency: U.S. Department of Agriculture Program: 10.557 WIC Special Supplemental Nutrition Program for Women, Infants, and Children Award Number and Year: 202792; 2024 Pass-Through Agency: Minnesota Department of Health Criteria: Title 2 U.S. Code of Federal Regulations § 200.303 states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Title 2 U.S. Code of Federal Regulations § 200.305(b) states payment methods must minimize the time elapsing between the transfer of funds from the federal agency or the pass-through entity and the disbursement of funds by the recipient or subrecipient regardless of whether the payment is made by electronic funds transfer or by other means. Condition: One of four subrecipient payments tested for compliance with federal cash management requirements was not paid timely to minimize the time elapsing between receipt of federal funds and disbursement to subrecipients. Questioned Costs: None. Context: Payment was made 126 days after receipt of the reimbursement request. The total amount reimbursed by the Minnesota Department of Health and paid to subrecipients is $1,087,575, consisting of 12 reimbursements. The sample of four reimbursements totaled $393,605. The payment made 126 days after receipt was for $89,935. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits. Effect: Partnership4Health is not in compliance with cash management requirements. Cause: Partnership4Health did not have backup procedures in place during an employee transition. Recommendation: We recommend Partnership4Health establish procedures to ensure cash management requirements are met. View of Responsible Official: Concur