Finding Text
Finding: 2023-005 Cash Management – Federal Grants
Federal Programs: Department of Health and Human Services
Health Center Program Cluster
Assistance Listing No. - 93.224 and 93.527
Criteria: Cash Management, 45 CFR 75.305
Condition: During the year, the Organization made an advance 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: Qualifying federal expenditures were not made by the Organization, resulting in excess federal funds drawn of $71,520.
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, and excess federal funds should be returned to the Department of Health and Human Services.
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 to ensure that advance draws of federal funds do not occur.
Contact Person: Dondre Wilson, CFO
Anticipated Date of Completion: July 31, 2024