FAC Explorer

Finding 47057 (2022-002)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2022
Accepted
2023-07-12
Audit: 50056
Organization: Georgia Association for Primary Healthcare (SC)
Auditor: Love Bailey & Associates LLC

AI Summary

  • Core Issue: The Organization did not comply with cash management requirements, as there were delays over 3 days between fund drawdowns and expenditures.
  • Impacted Requirements: This finding relates to the Uniform Guidance, specifically section ?200.305(b)(6), which mandates minimizing the time between fund transfer and disbursement.
  • Recommended Follow-Up: Implement new policies and procedures for better cash management of federal drawdowns to ensure compliance.

Finding Text

2022-2 Cash Management CFDA Numbers: 93.224 Criteria: Cash management requirements in the Uniform Guidance, specifically ?200.305(b)(6) ? Payment, states that entity should minimize the time elapsing between the transfer of funds and disbursement. Condition and context: The Organization had several federal expenditures when the gap between the drawdown and the expenditure was greater than 3 days. Cause: Lack of internal controls over the drawdown process. Effect: Noncompliance over cash management of federal funds. Recommendation: The Organization should establish policies and procedures to ensure proper cash management over federal drawdowns. Organization response: Management agrees with the finding. The Center has implemented new accounting policies over the use of federal dollars.

Corrective Action Plan

Corrective Action Plan In Finding 2022-2, it was noted that the Organization had several drawdowns that elapsed the time between transfer of funds and disbursement. Management recognizes the importance of complying with grant guidelines. In response to Finding 2022-1, Management has hired a new accountant and Revenue Cycle Manager 5/1/2023; the management team has implemented new accounting and financial policies within the accounting department to oversee and maintain federal expenditures are in compliance with grant agreements. Dr. Rena M. Douse Chief Executive Officer J.C. Lewis Primary Health Care Center

Categories

Cash Management

Other Findings in this Audit

  • 623499 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $5.32M
93.526 Affordable Care Act (aca) Grants for Capital Development in Health Centers $634,019
93.217 Family Planning_services $184,025