Finding Text
Material Weakness Finding: 2025-006 Cash Management – Federal Grants Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. - 93.224 and 93.527 Nurse Education, Practice Quality and Retention Grants Assistance Listing No. - 93.359 Criteria: Cash Management, 45 CFR 75.305 Condition: The Organization made advance draws of federal funds during the year ended December 31, 2025. Cause: The Organization failed to reconcile expenditures prior to drawing federal grant funds. Effect: During the year ended December 31, 2025, 7 advance draws totaling $4,903,985 were made in the U.S. Department of Health and Human Services’ Payment Management System. Portions of these funds were not expended prior to December 31, 2025, resulting in federal cash on hand totaling $924,748 at December 31, 2025. Questioned Costs: None reported. Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: Yes Recommendation: It is recommended that, before the Organization makes a draw of federal funds, a report of year-to-date program expenditures paid as well as year-to-date funds drawn be reviewed to ensure that no unauthorized federal funds are drawn down in excess of expenditures. Views of Responsible Officials: Management concurs. Management will reconcile all expenditures prior to making the federal grant draws to ensure that advance draws of federal funds do not occur. Contact Person: Ernest J. Stan Wardlaw, CEO Anticipated Date of Completion: September 30, 2026