Finding 51328 (2022-001)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2022
Accepted
2023-09-07
Audit: 52363
Organization: Southeasthealth System, Inc. (MO)
Auditor: Forvis LLP

AI Summary

  • Core Issue: Funds were not disbursed within the required three-day timeframe after being drawn down.
  • Impacted Requirement: Cash management practices do not comply with Department of Education guidelines (2 CFR 200.305 (b)).
  • Recommended Follow-Up: Management should enhance cash management controls to ensure timely disbursement of funds.

Finding Text

COVID-19 Education Stabilization Fund Higher Education Emergency Relief Fund Federal Assistance Listing Number 84.425 U.S. Department of Education Criteria or Specific Requirement ? Cash Management (2 CFR 200.305 (b)) Condition ? The Organization did not disburse funds drawn down within 3 calendar days Questioned Costs ? None. Context ? Out of a population of fifteen cash draws, a sample of two draws were selected for testing. The sampling methodology used is not and is not intended to be statistically valid. Of the two draws tested, one was not disbursed within the required timeframe of three calendar days. Effect ? The System's cash management system is not operating within the requirements determined by Department of Education (DOE). Cause ? Management of the Organization does not have sufficient controls in place to ensure funds drawn in advance are disbursed within the required timeframe. Identification as a Repeat Finding ? Not applicable. Recommendation - Management should review cash management processes and establish appropriate controls to ensure funds drawn in advance are disbursed within required timeframes. Views of Responsible Officials and Planned Corrective Actions ? SoutheastHEALTH ("SEH") has developed an organization policy for cash management for federally sponsored grant programs. SEH will generally use the reimbursement method unless there is an immediate cash need to minimize the time elapsing between the drawdown and disbursement of funds.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions - SoutheastHEALTH ("SEH") has developed an organization policy for cash management for federally sponsored grant programs. SEH will generally use the reimbursement method unless there is an immediate cash need to minimize the time elapsing between the drawdown and disbursement of funds. Responsible Party: Krista Berry, Controller

Categories

Cash Management

Other Findings in this Audit

  • 627770 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $7.42M
84.268 Federal Direct Student Loans $875,355
93.697 Covid-19 Testing for Rural Health Clinics $732,179
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $441,838
93.994 Maternal and Child Health Services Block Grant to the States $336,729
84.063 Federal Pell Grant Program $279,654
93.493 U.s. Department of Health and Human Services $144,006
93.461 Covid-19 Testing for the Uninsured $84,492
84.425 Education Stabilization Fund $13,227
93.301 Small Rural Hospital Improvement Grant Program $11,359
84.007 Federal Supplemental Educational Opportunity Grants $11,067
84.033 Federal Work-Study Program $8,225