Finding 1218155 (2024-003)

Material Weakness Repeat Finding
Requirement
CL
Questioned Costs
-
Year
2024
Accepted
2026-06-22
Audit: 404346

AI Summary

  • Core Issue: Discrepancies between federal fund requests and actual disbursements due to misallocation of COVID-19 funding.
  • Impacted Requirements: Compliance with 2 CFR section 200.305(b) regarding timely fund disbursement and accurate reporting.
  • Recommended Follow-Up: Implement a grant tracking system and ensure accurate recording of disbursements to align requests with actual expenditures.

Finding Text

U.S. Department of Health and Human Services 2024-003 Cash Management/Reporting Program(s) Name of Federal Program (Assistance Listing Number) Urban Indian Health Services (93.193) Special Diabetes Program for Indians - Diabetes Prevention and Treatment Projects (93.237) Criteria - Recipients of federal awards must minimize the time elapsing between the receipt of funds from the U.S. Treasury and disbursement by the Organization set out at 2 CFR section 200.305(b). Context and Condition - We compared four quarterly Federal Cash Transaction Reports and three monthly reimbursement requests to total disbursements reported by these two programs in the Organization’s job-costing system. In all cases, we found that the amounts requested did not match the amounts in the job-costing system. Cause - Due to increased funding the Organization received to address the impact of COVID-19, disbursements were not always correctly assigned to a program when incurred. Requests for federal funds were made based on those incomplete reports that were changed subsequently and no longer represent the amounts requested. The original reports were not maintained to support the requests made. Effect - A federal program could disburse funds prior to the disbursement by the Organization. We identified that both programs had requested funds in excess of disbursements. Questioned Costs - No costs were questioned. Repeat finding - Yes Statistically valid - Yes Recommendation - We recommend the Organization 1) maintains timely and accurate recording of disbursements in its job-costing system and 2) regularly request grant funds based on amounts expended as report in the Organization’s job-costing system. Views of responsible officials - The Organization is implementing a grant tracking system in addition to its job-costing system to better comply with these requirements. Together, these systems will be used to request only the amount attributable to the program for reimbursement.

Corrective Action Plan

FINDING 2024-003 Criteria: Recipients of federal awards must minimize the time elapsing between the receipt of funds from the U.S. Treasury and disbursement by the Organization set out at 2 CFR section 200.305(b). Audit Recommendation: We recommend that the Organization 1) maintains timely and accurate recording of disbursements in its job-costing system and 2) regularly request grant funds based on amounts expended as report in the Organization’s job-costing system. Auditee Response: UICSL revised its job costing system to better comply with these requirements and had overlap from previous programs/grants within its old QuickBooks Accounting system. UICSL now has a credit card tracking system by class code, ensures an invoice is allocated, and has focused on reimbursement method invoicing. Corrective Action Plan: Invoices and transactions will not be processed without approval and proper coding. Prior grant personnel and leadership are no longer within the organization. Monthly and quarterly invoices are sent according to each grant / contract agreement will be enforced by the GDCM and DFO in compliance with 2 CFR section 200.305(b). UICL is in active good status with all its current grantors, specifically Indian Health Servies (IHS). Person Responsible: Som Chivukula, Finance Director; Matt Poss, Executive Director Timeline: UICSL removing QuickBooks and switching to Oracle NetSuite in 2025/2026. Scheduling monthly check-ins and expenditure reports reviewed with department leads upon hiring of new Finance Director. All invoices reviewed with grant/project leads and logged appropriately. Staff accountant hired in late 2024 to help provide additional checks but also ensure UICSL focuses on reimbursement (post-expense).

Categories

Cash Management Reporting

Other Findings in this Audit

  • 1218152 2024-002
    Material Weakness Repeat
  • 1218153 2024-003
    Material Weakness Repeat
  • 1218154 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.193 URBAN INDIAN HEALTH SERVICES $365,227
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $356,965
93.237 SPECIAL DIABETES PROGRAM FOR INDIANS DIABETES PREVENTION AND TREATMENT PROJECTS $251,867
93.479 GOOD HEALTH AND WELLNESS IN INDIAN COUNTRY $201,389
93.354 PUBLIC HEALTH EMERGENCY RESPONSE: COOPERATIVE AGREEMENT FOR EMERGENCY RESPONSE: PUBLIC HEALTH CRISIS RESPONSE $56,162
93.323 EPIDEMIOLOGY AND LABORATORY CAPACITY FOR INFECTIOUS DISEASES (ELC) $53,720
93.391 ACTIVITIES TO SUPPORT STATE, TRIBAL, LOCAL AND TERRITORIAL (STLT) HEALTH DEPARTMENT RESPONSE TO PUBLIC HEALTH OR HEALTHCARE CRISES $51,385
93.069 PUBLIC HEALTH EMERGENCY PREPAREDNESS $15,795
21.019 CORONAVIRUS RELIEF FUND $10,000
93.988 COOPERATIVE AGREEMENTS FOR DIABETES CONTROL PROGRAMS $5,079