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.