Finding Text
Federal Agency: U.S. Department of Health and Human Services
Federal Program: Consolidated Health Centers Grant
AL Number: 93.224 & 93.527
Award Period: 1/1/23 - 12/31/23
Type of Finding: Significant Deficiency in Internal Control Over Compliance and Compliance
Criteria or Specific Requirement
According to §200.303 Internal controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.
Condition and Context
During our testing, we noted the department was unable to provide documentation to support management review and approval of the cash drawdowns prior to the drawdown of the federal funds.
Effect
The Organization may drawdown the incorrect amount of federal funds.
Questioned Costs
None identified.
Cause
Management oversight. Approvals were done verbally and no documentation was recorded.
Section III – Findings and Questioned Costs – Major Federal Programs (Continued)
2023-002 – Cash Management (Continued)
Recommendation
We recommend the Organization to review internal controls in regards to the approval of federal fund drawdown requests.
Views of Responsible Officials
The Organization has reviewed all of our internal controls to ensure all approvals are documented. The procedure has been updated to include preparing the draw documentation, entering accounts receivable invoice into the accounting system, which now requires an approval for all accounts receivable invoices. Once the accounts receivable invoices are approved in the accounting system then a drawdown can be requested in the payment management system.