Finding Text
Federal Agency: U.S. Department of Health and Human Services
Federal Program Name: The Department of Health and Human Services/Centers for Disease Control and Prevention
Assistance Listing Number: 93.323
Federal Award Identification Number and Year: NU50CK000515 - 2021
Pass-Through Agency: State of Washington Department of Health
Pass-Through Number: CBO28488-0
Award Period: July 1, 2023 through July 31, 2024
Type of Finding:
• Material Weakness in Internal Control over Compliance – Cash Management – Subrecipient Payments
• Other Matters
Criteria or specific requirement: 2 CFR section 200.305(b)(1) requires that an entity implement procedures to ensure that the time elapsing between the transfer of federal funds to the subrecipient
and the disbursement of such funds for program purposes by the subrecipient be minimized. 2 CFR section 200.305 (b)(3) states the pass-through entity must make payment within 30 calendar days after receipt of the billing, unless the request is believed to be improper.
Condition: 2 out of 8 total billings sampled were not paid timely.
Questioned costs: None.
Context: During our testing of subrecipient payments, 2 out of the 8 billings sampled were not paid within 30 calendar days to the subrecipient after the billing was submitted for payment.
Cause: Policies and procedures were not in place to ensure timely payments of subrecipient billings.
Effect: Subrecipients received payments a significant amount of time after expenditures have been incurred.
Recommendation: We recommend that the Organization implement policies and procedures to ensure subrecipients are paid within 30 days of when the billing is received. If the request is believed to be improper, support for the delay in payment should be maintained.
Views of responsible officials: There is no disagreement with the audit finding.