Planned Corrective Action: To address a gap identified internally by the Health Board, a new, comprehensive reconciliation and reporting process has been established. This gap was recognized when new finance department leadership assumed their positions prior to audit fieldwork, leading to the development and implementation of immediate corrective actions. Management at the Health Board has implemented a robust internal control process that includes reconciliation in two phases, which was developed in collaboration with our grants team. This documented process ensures thorough reconciliation and robust internal controls. It enhances the accuracy and timeliness of our financial reporting, particularly for FFR SF-425 submissions, thereby strengthening our overall financial management practices. The following outlines the detailed steps of this process, divided into two critical phases:
Phase I: Revenue, Expenses, and Cash Reconciliation
1. Reconciliation by FP&A Analyst: Ensures that the figures and documents entered in Sage Intacct align with the Payment Management System (PMS) regarding authorized grant amounts and drawdown amounts at each month-end close.
2. Grant Receivable Invoices: Recorded in Sage Intacct as part of the month-end close process. A billing or AR accountant collects the expenses and enters corresponding revenue amounts, which the system uses to generate invoices.
3. Notification of Drawdown: The FP&A Analyst notifies the Director of FP&A and the Account Manager via email about the drawdown and the corresponding invoice amount.
4. Verification and Processing: The Director of FP&A verifies the amount and processes the drawdown from PMS to the bank.
5. Monthly CFO Report: The CFO receives a monthly status report.
Phase II: FFR Reporting
1. Weekly PMS Review: Every Monday, the PMS is reviewed to identify any projects pending or expired for quarterly, annual, and final report periods.
2. Preparation of Revenue Reports: The billing or AR accountant prepares the direct and indirect revenue based on expense amounts.
3. Submission for Approval: The prepared revenue reports are submitted in the PMS for approval by the Director of FP&A.
4. Final Submission: After the DFPA's approval and final submission in the PMS, the information appears in the Grant Solution system for further approval by the program and grants team.
5. PMS Report: Receive an approval or rejection report from the PMS.
Name of Responsible Party: Zecharias Mesgane, CMA, Director of FP&A
Anticipated Completion Date: September 30, 2024