FAC Explorer

Finding 396170 (2023-001)

Significant Deficiency
Requirement
ABCL
Questioned Costs
-
Year
2023
Accepted
2024-05-08
Audit: 305796
Organization: Brenda Thibeault (CT)
Auditor: Doherty Beals & Banks PC

AI Summary

  • Core Issue: The organization is not minimizing the time between receiving funds from the US Treasury and disbursing them.
  • Impacted Requirements: Non-federal agencies must manage cash flow effectively to comply with federal guidelines.
  • Recommended Follow-Up: Finance staff should learn about federal cash management rules and only draw funds when they are actually spent.

Finding Text

Criteria: Non-federal agencies must minimize the time elapsing between the transfer of funds from the US Treasury and disbursement by the non-federal entity for direct program and the proportionate share of allowable indirect costs. Condition: The organization was drawing funding every quarter based on the funding percentage for the quarter without regard for the disbursement of funds. Cause: Finance personnel were not aware of this requirement and drew down funding quarterly on a pro-rata basis. Effect: The funds were held in an account with a nominal amount of interest earned. Interest earnings on the account were $16. Questioned costs: There were no questioned costs. Recommendation: The finance personnel become familiar with the federal compliance supplement as it relates to cash management and only initiate a draw down when federal funds are expended.

Corrective Action Plan

Organization’s response: After the former finance director completed the federal webinars on the guidelines for requesting funds through the Payment Management System and submitting Federal Financial Reports, it was identified and disclosed to the auditors that drawdown procedures had not been in compliance. SAMHSA was notified and accounts were reconciled with the return of unspent funds. All drawdowns are currently only occurring when funds are expended. Current finance personnel are trained and have extensive experience in federal reporting guidelines.

Categories

Cash Management

Other Findings in this Audit

  • 972612 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.788 Opioid Str $193,919
93.493 Congressional Directives $103,195
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $18,964
21.027 Coronavirus State and Local Fiscal Recovery Funds $13,834
93.958 Block Grants for Community Mental Health Services $11,960
93.959 Block Grants for Prevention and Treatment of Substance Abuse $10,104