Finding Text
Grants for Capital Development in Health Centers Assistance Listing No. 93.526 U.S Department of Health and Human Services Criteria or Specific Requirement ? Cash Management ? 45 CFR 75.305 Condition ? The Organization is required to ensure that funds are down as allowable costs are incurred within the parameters of the federal program. Questioned Costs ? None Context ? While the award received by the Organization did not specify a federal share percentage, grant draws should be completed in the same proportion as the grant is to total project costs. The Organization identified qualifying expenditures and drew 100 percent of the grant funds awarded as of December 31, 2021. However, this was in advance of the project being completed. Funds totaling $255,892 were returned and the Organization was able to then draw these funds again upon completion of the project. Effect ? Grant funds were drawn in full in advance of the completion of the project. Cause ? The Organization did not properly draw grant funds in the same proportion as the grant is to total project costs. Identification as a Repeat Finding ? Not a repeat finding. Recommendation ? The Organization should review grant terms for all applicable requirements for the federal program, including applicable cash management requirements. Views of Responsible Officials and Planned Corrective Actions ? Due to COVID-19, the completion of the capital project had been delayed several times beyond the original grant end date. The extension request was submitted before the end date of the grant ? December 31, 2021, however due to the year-end holiday season no response was received in a timely manner. Hence, the organization identified 100% of the grant expenditures and drew down the remaining funds. After receiving clear guidance from the HRSA program manager, some funds were returned as advised and drawn later upon completion of the project. Management will closely monitor cash management requirements specified by each grant. Contact person responsible for corrective action: Eden Ballatan, CFO Anticipated Completion Date: 6/30/2023