Finding Text
Criteria: Per section 200.302b of the Uniform Grant Guidance, the financial management system must provide written procedures to implement the requirements related to cash management, procurement, and allowability of costs in accordance with requirements of Uniform Grant Guidance. Per section 200.303, the organization must also evaluate and monitor their compliance with statutes, regulations, and the terms and conditions of Federal awards.
Condition: BestCare receives federal funds as portions of County agreements. The amount of federal funds included in the award is not provided to BestCare until the end of the fiscal year. Those responsible for monitoring compliance of these awards have knowledge of the award itself but may not have knowledge of the federal requirements.
Cause: Management was not able to determine what award amounts were subject to federal requirements until year end.
Effect: BestCare could be out of compliance on some requirements due to lack of policy and process to monitor compliance.
Questioned Costs: None
Recommendation: Management should ensure that all personnel responsible for monitoring grant compliance receive the proper training on the requirements for federal funds. BestCare should develop policies and procedures to ensure compliance with both grant and federal requirements.
Response: BestCare is working with an outside consulting company to put systems in place to monitor contract revenue and their reporting requirements. The work with the outside consulting company also includes staff training to inform and document the processes need to ensure compliance with procurement and reporting requirements.