Finding Text
Finding: 2023-003 Cash Management – Federal Grants
Federal Programs: Department of Health and Human Services
Grants for Capital Development in Health Centers
Assistance Listing No. 93.526
Criteria: Cash Management, 45 CFR 75.305
Condition: During the year, the Organization made one draw of federal funds that was not disbursed in a timely manner for program expenditures. The Organization is required to minimize the time elapsing between the transfer of funds to the Organization from the U.S. Treasury and the issuance of payments for program purposes.
Cause: The Organization made a draw of federal grant funds in advance of making the qualifying expenditures.
Effect: Although expenditures were made prior to December 31, 2023, the Organization did not minimize the time elapsing between transfer of funds from the United States Treasury and the disbursement for expenditures.
Questioned Costs: None reported.
Context/Sampling: The finding appears to be a systemic issue.
Repeat Finding from Prior Year: No
Recommendation: Efforts should be made to ensure advance draws of federal funds do not occur.
Views of Responsible Officials: The Organization understands the requirements to disburse federal funds in a timely manner. Procedures will be established to minimize the time elapsing between the transfer of funds to the Organization from the U.S. Treasury and the issuance of payments for program purposes by the Organization.
Contact Person: Jennifer Dittes, CEO
Anticipated Date of Completion: May 31, 2024