Finding Text
2021–004 Cash Management
Federal Agency: U.S. Department of Health and Human Services
Federal Program Name: Health Center Program Cluster
Assistance Listing Numbers: 93.224 and 93.527
Federal Award Identification Number and Year: H80CS00233 – 20
Award Period: January 1, 2021 through December 31, 2021
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria or specific requirement: According to § 75.302 Financial management and standards for financial management systems of 45 CFR Part 75, the non-federal entity’s financial management systems, including records documenting compliance with federal statutes, regulations, and the terms and conditions of the federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions. Further, the financial management system of each non-federal entity must provide accurate, current, and complete disclosure of the financial results of each federal award or program in accordance with the reporting requirements. According to § 75.303 Internal controls of 45 CFR Part 75, the non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award.
Condition: We noted the Family Practice is not in compliance with cash management.
Questioned costs: None
Context: During our testing of cash management we noted drawdown requests were not supported by adequate records and documentation to ensure proper cash management practices.
Cause: Management oversight. The Family Practiced lacked established internal controls and procedures over financial grant management to ensure submitted reports are complete, agree to supporting records and documentation, and are properly maintained in the files of the Family Practice.
Effect: Inability to support compliance with the grant and a potential loss of federal funding.
Recommendation: We recommend the Family Practice design controls and procedures to ensure the documentation and records are properly maintained in the files of the Family Practice.
Views of responsible officials: There is no disagreement with the audit finding.