Core Issue: The Organization failed to deposit funds from the pass-through entity on time.
Impacted Requirements: This violates 2 CFR 200.305, which mandates timely fund transfers to prevent financial misstatements.
Recommended Follow-Up: Implement a policy for timely deposits to safeguard assets and ensure accurate financial reporting.
Finding Text
U.S. Department of Health and Human Services
Health Resources and Services Administration
Health Care Center Program
CFDA 93.224
2023-05: Timeliness of Deposits
Criteria: The recipient is responsible for complying with audit requirements in accordance with 2 CFR 200.305. A non-Federal entity must minimize the time elapsing between the transfer of funds from the US Treasury or pass-through entity and disbursement by the non-federal entity.
Condition: The Organization did not deposit funds from the pass-through entity in a timely manner.
Effect: Failure to have an adequate policy and procedure regarding cash management could result in misappropriation of assets and material misstatements in financial statements.
Cause: Lack of policies and procedures regarding cash management and recording deposits.
Identification of a repeat finding: No.
Recommendation: We recommend that the Organization ensure to deposit funds received in a timely manner as to avoid misappropriation of assets and misstatements in financial statements.
Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 33 in this audit report.
Categories
Subrecipient MonitoringCash ManagementMatching / Level of Effort / Earmarking