Finding 1164815 (2025-008)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2025
Accepted
2025-12-15
Audit: 374614
Auditor: TERRY HORNE CPA

AI Summary

  • Core Issue: The Organization drew federal funds without documenting related expenditures first.
  • Impacted Requirements: This violates cash management rules under 45 CFR 75.305.
  • Recommended Follow-Up: Ensure documentation of expenditures is completed before drawing funds, with new procedures in place by January 31, 2026.

Finding Text

Finding: 2025-008 Cash Management – Federal Grants Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. 93.224 and 93.527 Criteria: Cash Management, 45 CFR 75.305 Condition: During the year, the Organization made several draws of federal funds for which expenditures were not documented at the time of the draw. The Organization is required to identify related expenditures prior to drawing funds from the U.S. Treasury. Cause: The Organization made draws of federal grant funds in advance of documenting the expenditures. Effect: The Organization could have held federal funds for time periods in excess of one business day. Questioned Costs: None reported. Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: Yes Recommendation: The Organization should document qualifying expenditures prior to making the related draws of funds from the U.S. Treasury. Views of Responsible Officials: The Organization understands the requirements to document qualifying expenditures prior to drawing funds from the U.S. Treasury. Procedures will be established to document these expenditures prior to drawing funds from the U.S. Treasury to ensure that advance draws of federal funds do not occur. Contact Person: Amanda Duke, COO Anticipated Date of Completion: January 31, 2026

Corrective Action Plan

In Finding 2025-008, The Organization made several draws of federal funds for which expenditures were not documented at the time of the draw. The Organization is required to identify related expenditures prior to the transfer of funds to the Organization from the U.S. Treasury. Management recognizes the importance of the requirements to disburse federal funds in a timely manner. In response to Finding 2025-008, procedures. will be established to document these expenditures prior to transferring the from the U.S. Treasury to ensure that advance draws of federal funds do not occur.

Categories

Cash Management

Other Findings in this Audit

  • 1164808 2025-005
    Material Weakness Repeat
  • 1164809 2025-005
    Material Weakness Repeat
  • 1164810 2025-006
    Material Weakness Repeat
  • 1164811 2025-006
    Material Weakness Repeat
  • 1164812 2025-007
    Material Weakness Repeat
  • 1164813 2025-007
    Material Weakness Repeat
  • 1164814 2025-008
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.224 CONSOLIDATED HEALTH CENTERS (COMMUNITY HEALTH CENTERS, MIGRANT HEALTH CENTERS, HEALTH CARE FOR THE HOMELESS, AND PUBLIC HOUSING PRIMARY CARE) $2.88M
93.918 GRANTS TO PROVIDE OUTPATIENT EARLY INTERVENTION SERVICES WITH RESPECT TO HIV DISEASE $355,956
93.153 COORDINATED SERVICES AND ACCESS TO RESEARCH FOR WOMEN, INFANTS, CHILDREN, AND YOUTH $58,049
93.527 AFFORDABLE CARE ACT (ACA) GRANTS FOR NEW AND EXPANDED SERVICES UNDER THE HEALTH CENTER PROGRAM $35,799
93.332 COOPERATIVE AGREEMENT TO SUPPORT NAVIGATORS IN FEDERALLY-FACILITATED AND STATE PARTNERSHIP MARKETPLACES $3,738
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $0