Finding Text
Finding 2023-008 Federal Agency: U.S Department of Health and Human Services AL Program: 93.224 – Health Center Program (Community Health Centers, Migrant Health Center Health Care for the Homeless, and Public Housing Primary Care). Federal Award No: Various Area: Cash Management Questioned Costs: None Criteria: Federal cash management requirements require that drawdowns be based on actual, documented program expenditures and that entities maintain policies and procedures to ensure cash needs are properly monitored and scheduled. Condition: 1. For 2 of 2 items tested. We noted that total expenditures reported in documentary support submitted by the State for drawdown requests do not match the initial amounts requested, approved, and received by the awarding agency. We are aware that the expenditure reports furnished to us are not the originals that would have accompanied the State’s initial request for reimbursement from the awarding agency. It does not appear that the original supporting expenditure reports were retained. 2. The State does not appear to have a policy or adopted standard methodology for monitoring 93.224 programmatic cash needs and scheduling regular drawdowns. Cause: 1. The State’s documentary retention controls over programmatic drawdowns need improvement. 2. The State has not established a policy or standard operating procedure for monitoring 93.224 programmatic cash needs and scheduling regular drawdowns. Effect: 1. The State’s internal documentary retention controls for drawdowns are inadequate. 2. The lack of documented monitoring and drawdown policies may contribute to general fund cashflow shortages or in some cases lapsed opportunities for drawdowns. Recommendation: 1. The State should strengthen its controls over documentary retention for drawdowns. Retain expenditure reports for the basis of drawdowns at the time of filing and ensure there is appropriate explanatory documentation retained for any special reconciling items. 2. The State should also establish clear policies and procedures for monitoring cash needs, performing drawdowns, and retaining documentation of drawdowns. Identification as a Repeat Finding: N/A View of Responsible Officials: The State’s response and corrective action plan addressing this finding is included in the accompanying corrective action plan.