Finding 42773 (2022-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2022

Accepted

2023-02-16

Audit: 39193

Organization: Tensas Community Health Center (LA)

Auditor: Hawthorn Waymouth & Carroll LLP

AI Summary

Core Issue: The Center drew down $116,113 from a federal grant without expending the funds, violating cash management rules.
Impacted Requirements: Non-federal entities must minimize the time between fund transfer and disbursement for program costs.
Recommended Follow-Up: Implement internal procedures to regularly reconcile drawdowns to ensure funds are sourced from the correct grants.

Finding Text

Criteria: A non-federal entity must minimize the time elapsing between the transfer of funds from the U.S. Treasury and disbursement by the non-federal entity for direct program or project costs. Condition: The Center had $116,113 in drawdowns on a federal grant for which no funds had been expended. Cause: The drawdown was inadvertently made out of the wrong grant and not detected by management until several months after year-end. Context: Management made two drawdowns near the end of the fiscal year totaling $116,113. Effect: The Center is not in compliance with the cash management compliance requirement. Auditor's Recommendation: The Center should have proper internal procedures in place to regularly reconcile drawdowns made per grant to ensure the funds are being drawn from the appropriate grant.

Corrective Action Plan

Since quarterly reporting is no longer required for HRSA grants in the payment management system, the reconciliation process was unfortunately disrupted. TCHC board of directors and management will review and revise the current cash management policy and procedure to ensure compliance with 45 CFR 75.302(b)(6) and 45 CFR 75.305, as well as, detail a procedure for reconciling drawdowns on a scheduled basis. The procedures will also be designed to ensure improved communication occurs between the individual(s) charged with making drawdowns from the payment management system and the accounting department. The CEO will be responsible for the revised policy and procedure being approved by the board at the February 2023 TCHC board meeting with immediate implementation.

Other Findings in this Audit

42772 2022-002

Significant Deficiency Repeat
619214 2022-002

Significant Deficiency Repeat
619215 2022-001

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
93.527	Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program	$1.08M
93.224	Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care)	$491,355
93.498	Provider Relief Fund	$71,799
93.526	Affordable Care Act (aca) Grants for Capital Development in Health Centers	$0