Finding 574136 (2023-003)

Significant Deficiency Repeat Finding
Requirement
CL
Questioned Costs
-
Year
2023
Accepted
2025-08-21
Audit: 364707

AI Summary

  • Core Issue: Discrepancies between federal fund requests and actual disbursements were found due to misallocation of funds related to COVID-19 support.
  • Impacted Requirements: Compliance with 2 CFR section 200.305(b) on minimizing time between fund receipt and disbursement was not met.
  • Recommended Follow-Up: Ensure accurate recording of disbursements and align fund requests with actual expenditures in the job-costing system.

Finding Text

U.S. Department of Health and Human Services 2023-003 Cash Management/Reporting Program(s) Name of Federal Program (Assistance Listing Number) Urban Indian Health Services (93.193) Special Diabetes Program for Indians - Diabetes Prevention and Treatment Projects (93.237) Criteria - Recipients of federal awards must minimize the time elapsing between the receipt of funds from the U.S. Treasury and disbursement by the Organization set out at 2 CFR section 200.305(b). Context and Condition - We compared four quarterly Federal Cash Transaction Reports and three monthly reimbursement requests to total disbursements reported by these two programs in the Organization’s job-costing system. In both reports we found that the amounts requested did not match the amounts in the job-costing system. Cause - Due to increased funding the Organization received to address the impact of COVID-19, disbursements were not always correctly assigned to a program when incurred. Requests for federal funds were made based on those incomplete reports that were changed subsequently and no longer represent the amounts requested. The original reports were not maintained to support the requests made. Effect - A federal program could disburse funds prior to the disbursement by the Organization. We identified that both programs had requested funds in excess of disbursements. Questioned Costs - No costs were questioned. Repeat finding - Yes Statistically valid - Yes Recommendation - We recommend the Organization 1) maintains timely and accurate recording of disbursements in its job-costing system and 2) regularly request grant funds based on amounts expended as report in the Organization’s job-costing system. Views of responsible officials - The Organization is implementing a grant tracking system in addition to its job-costing system to better comply with these requirements. Together, these systems will be used to request only the amount attributable to the program for reimbursement.

Corrective Action Plan

Criteria: Recipients of federal awards must minimize the time elapsing between the receipt of funds from the U.S. Treasury and disbursement by the Organization set out at 2 CFR section 200.305(b). Audit Recommendation: We recommend that the Organization 1) maintains timely and accurate recording of disbursements in its job‐costing system and 2) regularly request grant funds based on amounts expended as report in the Organization’s job‐costing system. Auditee Response: UICSL has limited access to its accounting system and removed access by outsourced financial management personnel. In addition to better invoicing structure, UICSL also revised its job-costing system to better comply with these requirements. Together, these systems will be used to request only the amount of attributable ot the programs for reimbursement-based grant funding. Corrective Action Plan: All transactions are logged into the accounting system with appropriate respective grant codes and departments. Invoices and transactions will not be processed without approval and proper coding. UICSL has also implemented a new credit card tracking system along with a purchase order system that is active and maintained by Finance and Accounting. Monthly and quarterly invoices will be prepared for grants in compliance with 2 CFR section 200.305(b). Person Responsible: Matt Poss, Executive Director and Mary Louise Santacaterina, Grants Manager Timeline: Already removed accounting system access by prior outsourced financial managemnet personnel. Monthly check-ins and expenditure reports have been implemented with department leads in 2024. Grants Manager tasked along with Director of Finance of reviewing monthly invoices and ensuring each meets grant and expenditure requirements. All invoices reviewed with grant/project leads and logged appropriately. Staff acountant hired in 2024 to help provide oversight.

Categories

Cash Management Reporting

Other Findings in this Audit

  • 574135 2023-002
    Significant Deficiency Repeat
  • 574137 2023-002
    Significant Deficiency Repeat
  • 574138 2023-003
    Significant Deficiency Repeat
  • 1150577 2023-002
    Significant Deficiency Repeat
  • 1150578 2023-003
    Significant Deficiency Repeat
  • 1150579 2023-002
    Significant Deficiency Repeat
  • 1150580 2023-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.193 Urban Indian Health Services $527,564
93.237 Special Diabetes Program for Indians Diabetes Prevention and Treatment Projects $422,808
93.479 Good Health and Wellness in Indian Country $382,382
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $159,954
93.310 Trans-Nih Research Support $80,679
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $67,820
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $60,495
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $30,107
21.019 Coronavirus Relief Fund $6,202