Finding Text
Cash Management - Lack of Management Oversight over Drawdown Requests – Material Weakness in Internal Control over Compliance U.S. Department of Health and Human Services: Health Center Program and American Rescue Plan Act Funding for Health Centers, ALN 93.224; Ending HIV Epidemic – Primary Care HIV Prevention, ALN 93.527. Criteria Drawdowns for Federal awards should be properly supported with relevant forms and reports to substantiate the costs incurred and evidence management review and approval. Condition and Context In connection with our cash management testing, the Health Center was unable to provide documentation to support individual draws made during the year. The only available documentation substantiates the receipt of cash, without linking it to eligible grant expenditures. Thus, we were unable to determine that individual draw requests were based on actual costs incurred on an interim basis throughout the year. Cause Significant turnover in the Finance department and the records to support grant drawdowns were not maintained. Effect and Potential Effect The lack of preparation and retention of supporting documentation resulted in our inability to specifically determine that individual draws were properly determined throughout the year. Noncompliance with laws, rules and regulations could impact the Health Center’s ability to monitor grant information timely. Questioned Cost $2,364,537. Repeat Finding Yes (2022-005). Recommendation We recommend that management establish procedures to ensure that documents supporting all drawdown requests are properly prepared and retained. Such requests should also be reviewed and approved prior to the request being made, with this approval documented and retained. Views of Responsible Officials and Planned Corrective Action See corrective action plan.