FAC Explorer

Finding 580704 (2022-004)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2022
Accepted
2023-12-13
Audit: 6569
Organization: Asian and Pacific Islander Wellness Center, Inc. D/b/a San Francisco Community Health Center (CA)
Auditor: Chw LLP

AI Summary

  • Core Issue: The Center drew down funds before actually spending them on program costs.
  • Impacted Requirements: This practice violates the requirement to minimize the time between fund transfer and disbursement.
  • Recommended Follow-Up: Improve tracking of grant expenditures and only draw down funds at month-end based on actual spending.

Finding Text

2022-004 Cash Management Compliance ALN: 93.834 Program: National Capacity Building Programs Agency: US Department of Health and Human Services Compliance Requirement: (C) Cash Management Repeat Finding: No Criteria: Non-Federal entities must minimize the time elapsing between the transfer of funds from the U.S. Treasury and disbursement by the non-Federal entity for program costs. Finding/ Condition: The Center made drawdowns of funds prior to incurring program expenditures. Questioned Cost: None. Effect: Early drawdowns create potential liabilities to the federal government and can affect future funding opportunities. Cause: Grant expenditures were not adequately tracked to be able to determine the proper amounts to drawdown. Recommendation: We recommend the Center improve the tracking of grant expenditures for all programs and then drawdown funds at month end based on the expenditures for the month. Views of Responsible Officials and Corrective Action Plan: The Center agrees with the finding and will implement additional controls to ensure that this does not recur. Please refer to the corrective action plan on page 36.

Categories

Cash Management Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 4260 2022-002
    Significant Deficiency Repeat
  • 4261 2022-003
    Significant Deficiency
  • 4262 2022-004
    Significant Deficiency
  • 580702 2022-002
    Significant Deficiency Repeat
  • 580703 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.834 Capacity Building Assistance (cba) for High-Impact Hiv Prevention $680,646
93.914 Hiv Emergency Relief Project Grants $358,530
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $214,305
93.918 Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $140,666
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $2,366