Finding 524756 (2024-003)

Material Weakness
Requirement
C
Questioned Costs
-
Year
2024
Accepted
2025-02-27
Audit: 344160
Auditor: Marcum LLP

AI Summary

  • Core Issue: Incorrectly drew down $542,511 from the wrong contract, leading to compliance risks.
  • Impacted Requirements: Violated 2 CFR 200.302 (b)(3) by failing to maintain accurate records of fund sources and applications.
  • Recommended Follow-Up: Implement regular reconciliations between internal records and federal data to ensure contract balances are accurate.

Finding Text

FINDING 2024-003 Cash Management – Drawdowns from Incorrect Contract FINDING TYPE Material Weakness in Internal Control over Compliance AGENCY U.S. Department of Health and Human Services ALN 93.224 / 93.527 Health Center Cluster CRITERIA In accordance with 2 CFR 200.302 (b)(3), entities receiving federal funds are responsible for maintaining records that adequately identify the source and application of funds for federallyfunded activities. CONDITION AND CONTEXT During the year ended June 30, 2024, $542,511 of funds related to contract H80CS00718 were incorrectly drawn from contract 21C8ECS44608C6. The error was only noted after the balance in contract 21C8ECS44608C6 was prematurely exhausted by the incorrect drawdowns. Upon noting the error, management informed the federal government of the error and submitted a request to correct the contract balances on June 11, 2024. CAUSE The staff tasked with initiating the draw-downs for this program entered the incorrect contract number into a funding request and the error was then subsequently repeated. EFFECT OR POTENTIAL EFFECT The organization may initiate drawdown requests that are not in compliance with the cash management requirements of the Uniform Guidance. REPEAT FINDING No. RECOMMENDATION We recommend that the organization implement a periodic reconciliation between its internal accounting records and the federal government’s data of each contract’s remaining available balance. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See attached corrective action plan. Questioned Costs None.

Categories

Cash Management Material Weakness

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
16.034 Coronavirus Emergency Supplemental Funding Program $1.11M
93.150 Projects for Assistance in Transition From Homelessness (path) $272,728
93.217 Family Planning Services $246,704
93.224 Health Center Program (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $198,791
14.239 Home Investment Partnerships Program $195,855
93.788 Opioid Str $110,302
93.959 Block Grants for Prevention and Treatment of Substance Abuse $105,560
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $100,414
93.778 Medical Assistance Program $83,859
93.958 Block Grants for Community Mental Health Services $78,989
93.493 Congressional Directives $78,684
93.526 Grants for Capital Development in Health Centers $68,623
14.218 Community Development Block Grants/entitlement Grants $67,549
21.027 Coronavirus State and Local Fiscal Recovery Funds $64,618
97.024 Emergency Food and Shelter National Board Program $53,249
14.231 Emergency Solutions Grant Program $48,540
14.267 Continuum of Care Program $32,440
93.994 Maternal and Child Health Services Block Grant to the States $32,088
93.527 Grants for New and Expanded Services Under the Health Center Program $24,926
93.667 Social Services Block Grant $21,678
93.569 Community Services Block Grant $15,812
93.914 Hiv Emergency Relief Project Grants $15,597
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $5,341