Finding Text
Identification: 93.301 United States Department of Health and Human Services, COVID‐19 Small Hospital
Improvement Program; Noncompliance Finding/Significant Deficiency; Cash Management Compliance
Requirement.
Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance) Section 305(b)(9) requires
interest earned in excess of $500 on federal payments is to be remitted annually to the Department of
Health and Human Services Payment Management System.
Condition: During the audit, it was noted that going back to July 2020 when the first COVID‐19 Small Hospital
Improvement grant funds were deposited and through December 31, 2023, the Foundation earned interest
totaling $371,328 on advances of federal grant awards and had not remitted the interest earnings in
accordance with Uniform Guidance Section 305(b)(9).
Cause: The Foundation did not have adequate controls in place to ensure that interest earnings in excess of
$500 be remitted annually in accordance with Uniform Guidance Section 305(b)(9).
Effect: The Foundation did not comply with cash management principles for federal payments as set forth in
Uniform Guidance Section 305(b)(9).
Questioned costs: None
Perspective information: We tested the Foundation's computation for interest earned on advances of
federal awards and determined the interest earnings of $371,328 had not been properly remitted to the
Department of Health and Human Services.
Repeat Finding: N/A
Recommendations: We recommend policies and procedures regarding cash management be improved so
that processes are established to track and remit interest earnings on advances of federal grant awards.
Views of Responsible Officials: The Foundation will implement procedures so that we are following the cash
management principles outlined in Uniform Guidance Section 305(b)(9). The Foundation has been in contact
with the Kansas Department of Health and Environment (KDHE), who provided these grant funds to the
Foundation as a pass‐through agent, and we will return the excess interest earned on the advances of
federal awards to KDHE.