Finding 1163382 (2024-002)

2024-002 Cash Management Compliance ALN: 93.224 Program: Community Health Center Cluster, Section 330 Agency: US Department of Health and Human Services Compliance Requirement: C Cash Management Criteria: The compliance supplement requires organizations receiving federal funds to establish controls and procedures that would minimize the amount of time between drawdowns and the disbursements of grant funds. Finding/ Condition: Federal drawdowns were made prior to disbursement of funds in anticipation of a government shutdown. Questioned Cost: None. Effect: Drawdowns occurred before needed for disbursement purposes. Cause: Uncertainty with the federal funding sources caused normal internal controls and processes to not be followed. Repeat Finding: No. Recommendation: We recommend training for staff to ensure cash management requirements are followed. Management should track the status of the federally funded cash disbursements against the need to draw down funds on related grants. Views of Responsible Officials and Corrective Action Plan: The Center agrees with the finding. Please refer to the corrective action plan on page 37.