Finding Text
Grants for Capital Development in Health Centers –
CFDA No. 93.526
U.S. Department of Health and Human Services
Award No. 6 C8ECS44310-01-05
Program Year 2023
Criteria or Specific Requirement – Cash Management (45 CFR 75.305)
Condition – The Organization’s internal controls over the grant budget and cash
drawdown process were not operating effectively to ensure allowed expenditures were
incurred prior to drawdown.
Questioned cost – None
Context – Grant funds were drawn down prior to disbursements of expenditures within
the grant period for six draws during the fiscal year ended June 30, 2023.
Effect – Grant funds were drawn down sooner than administratively necessary. The
final six draws were not earned as of the end of the grant period and are reflected as
deferred grant revenue. A budget modification was subsequently approved by the
HRSA and the deferred grant revenues were subsequently obligated and expended.
Cause – The Organization’s initial grant budget was not in compliance with the grant
requirements and required a budget modification subsequent to when the Organization
had already completed cash draws.
Identification as a repeat finding, if applicable – Is not a repeat finding.
Recommendation – The Organization should ensure procedures are followed to prevent
cash draws from being drawn down sooner than three days prior to disbursement of
allowable expenditures.