Finding Text
Finding: 2024-003 Cash Management – Federal Grants
Federal Programs: Department of Health and Human Services
Health Center Program Cluster
Assistance Listing No. - 93.224 and 93.527
Criteria: Cash Management, 45 CFR 75.305
Condition: The Organization failed to reconcile expenditures to federal grant draws prior to transferring the federal funds to the Organization’s bank account. No grant draws exceeded the cash needs for grant related expenditures. However, failure to reconcile expenditures to federal grant draws could result in grant draws in excess of expenditures.
Cause: The Organization failed to reconcile expenditures prior to drawing federal grant funds.
Effect: Without proper controls, including reconciliations of expenditures prior to drawing federal grant funds, advance draws could occur.
Questioned Costs: None reported.
Context/Sampling: The finding appears to be a systemic issue.
Repeat Finding from Prior Year: Yes
Recommendation: It is recommended that, before the Organization makes a draw of federal funds, a report of year-to-date program expenditures paid as well as year-to-date funds drawn be reviewed to ensure that no unauthorized federal funds are drawn down in excess of expenditures.
Views of Responsible Officials: Management concurs. Management will reconcile all expenditures prior to making the federal grant draws to ensure that advance draws of federal funds do not occur.
Contact Person: Dondre Wilson, CFO
Anticipated Date of Completion: July 31, 2025