Finding Text
Finding 2024-001 – Cash Management
Federal Agency: U.S. Department of Health and Human Services
Federal Program Name: Health Center Cluster
Assistance Listing Number: 93.224 & 93.527
Federal Award
Identification Number: H80CS00725-22-03 & H80CS00725-23-00
Award Periods: June 1, 2023 – May 31, 2024 & June 1, 2024 – May 31, 2025
Criteria:
CFR § 200.303 Internal controls states that the non-Federal entity must: (a) 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. Furthermore, CFR § 200.305(b) indicates that the non-Federal entity should minimize the time lapsing between the transfer of funds from the Federal agency and the disbursement of funds by the recipient.
Condition:
The Organization did not maintain documentation to support the performance of its internal control related to the review and approval of a drawdown request.
Questioned Costs:
None.
Context:
This condition occurred in one of the five drawdowns selected for testing.
Cause:
Turnover within the accounting department.
Effect:
Unauthorized drawdowns could lead to amounts being drawn in excess of the expenses incurred and charged to a federal grant.
Repeat Finding:
No.
Recommendation:
We recommend that management reinforce the current internal control over drawdowns and ensure that when turnover happens, the appropriate employee responsibilities are reassigned.
Views of Responsible Officials:
There is no disagreement with the audit finding.