Finding Text
2025-002 Cash Management ALN 93.224 Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) US Department of Health and Human Services Contract Numbers H80CS30749-06, H80CS30749-07, and H8NCS54017-01-02 Contract Periods September 1, 2024 – August 31, 2025 and April 1, 2024 – March 31, 2025 Conditions and Criteria: The requirement under 2 CFR 200.305 provides requirements for the timely disbursement of funds after receipt of federal grant funds. For recipients and subrecipients other than 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. See § 200.302(b)(6). Except as noted in this part, the Federal agency must require recipients to use only OMBapproved, government-wide information collections to request payment. In the 2025 audit, for 4 of the 10 samples selected for testing, OCHS did not disburse federal funds within the required one business day after receipt. Effect: The effect is that federal funds were not disbursed within the OMB Compliance requirement of one business day after receipt of the federal funds. Cause: There were staffing changes in Grant Management and CFO positions. OCHS has policies in place to minimize time elapse between disbursement of federal funds after receipt, however there was a lack of monitoring to ensure timely disbursement of federal funds as required under 2 CFR 200.305. Auditor Recommendation: We recommend a procedure be added to ensure there is additional monitoring over federal grant cash timely remittance. Planned Corrective Action: See the following Corrective Action Plan section for management’s planned corrective action.