FAC Explorer

Finding 390723 (2023-005)

Material Weakness
Requirement
C
Questioned Costs
-
Year
2023
Accepted
2024-03-31
Audit: 301407
Organization: Blue Ridge Area Health Education Center, Inc. (GA)
Auditor: Rl Jennings & Associates PC

AI Summary

  • Core Issue: The Organization failed to deposit funds from the pass-through entity on time.
  • Impacted Requirements: This violates 2 CFR 200.305, which mandates timely fund transfers to prevent financial misstatements.
  • Recommended Follow-Up: Implement a policy for timely deposits to safeguard assets and ensure accurate financial reporting.

Finding Text

U.S. Department of Health and Human Services Health Resources and Services Administration Health Care Center Program CFDA 93.224 2023-05: Timeliness of Deposits Criteria: The recipient is responsible for complying with audit requirements in accordance with 2 CFR 200.305. A non-Federal entity must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity. Condition: The Organization did not deposit funds from the pass-through entity in a timely manner. Effect: Failure to have an adequate policy and procedure regarding cash management could result in misappropriation of assets and material misstatements in financial statements. Cause: Lack of policies and procedures regarding cash management and recording deposits. Identification of a repeat finding: No. Recommendation: We recommend that the Organization ensure to deposit funds received in a timely manner as to avoid misappropriation of assets and misstatements in financial statements. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 33 in this audit report.

Corrective Action Plan

2023-05: Timeliness of Deposits Name of contact person: Caroline Aultman, Executive Director Corrective Action: All receipts will be deposited in a timely manner once received by the Organization. Proposed completion date: The Board will implement the above procedure immediately.

Categories

Subrecipient Monitoring Cash Management Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 390719 2023-001
    Significant Deficiency
  • 390720 2023-002
    Significant Deficiency
  • 390721 2023-003
    Significant Deficiency
  • 390722 2023-004
    Significant Deficiency
  • 967161 2023-001
    Significant Deficiency
  • 967162 2023-002
    Significant Deficiency
  • 967163 2023-003
    Significant Deficiency
  • 967164 2023-004
    Significant Deficiency
  • 967165 2023-005
    Material Weakness

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) $587,709
93.107 Area Health Education Centers Point of Service Maintenance and Enhancement Awards $379,129