NATIONAL LATINO BEHAVIORAL HEALTH ASSOCIATION

2019-001 ? Cash Management Federal program information: Funding agency: U.S. Department of Health and Human Services ? Substance Abuse and Mental Health Services Administration Title: Projects of Regional and National Significance CFDA number: 93.243 Award year and number: September 30, 2018 ? September 29, 2019, Award No. 1U79SP023012-01 Criteria: In accordance with general uniform administrative requirements, grantees are to maintain cash balances of any received but unexpended grant and contract funds and such funds are to be available to be expended in accordance with applicable grant and contract provisions. Condition: As of December 31, 2019, the Association?s total cash balance available for grant and contract programs totaled $773, which is $17,155 less than the Association?s grant and contract unspent advances (i.e. unearned revenues) of $17,928. Questioned Costs: None. Context: As of December 31, 2019, the unearned revenue balance totaled $17,928, the Association?s cash balance available for grant and contract programs totaled $773, resulting in a shortage of available cash of $17,155 at year-end. Cause: Internal controls have not been implemented to ensure sufficient cash balances are maintained to equal or exceed the Association?s unearned revenue balance. Effect: The Association is not in compliance with cash management requirements. Auditor?s Recommendations: Develop a corrective action plan and implement internal controls to ensure costs for which reimbursement was requested were paid prior to the date of the reimbursement request. For unearned revenue balances, ensure cash balances are maintained at levels that equal or exceed the Association?s grant related unearned revenue amounts. Management?s Response: Corrective action has been taken. The Association?s management has implemented procedures to ensure indirect costs are charged correctly.