Recurring Findings

Health Care: Recurring Significant Internal Control Deficiencies

Federal Program	Issue	First Year Reported
	Department's Assertion	Page Number
Medical Assistance Program	Cash Management. The Cash Management Unit of Health Care Services failed to ensure that the drawdown of federal funds for payments to local agencies were in compliance with the funding technique requirements for the Block Grants for Prevention and Treatment of Substance Abuse program. For three of the eight pre-issuance drawdowns tested, the related disbursements occurred more than three business days after deposit of the related federal funds. Funds were drawn in error by the Cash Management Unit, which caused the warrant issue dates to exceed the required number of business days.	2015-16
	Partially Corrected. Health Care Services conducted a training with staff in March 2017 to review existing policies and procedures. Health Care Services will monitor the fund draws to ensure staff follow procedures on a regular basis. Health Care Services will work with the State Controller’s Office and other necessary oversight entities to ensure compliance on an ongoing basis.	30
SCHIP (State Children's Insurance Program)	Cash Management. The Cash Management Unit of Health Care Services failed to ensure that the drawdown of federal funds for payments to local agencies were in compliance with the funding technique requirements for the Block Grants for Prevention and Treatment of Substance Abuse program. For three of the eight pre-issuance drawdowns tested, the related disbursements occurred more than three business days after deposit of the related federal funds. Funds were drawn in error by the Cash Management Unit, which caused the warrant issue dates to exceed the required number of business days.	2015-16
	Partially Corrected. Health Care Services conducted a training with staff in March 2017 to review existing policies and procedures. Health Care Services will monitor the fund draws to ensure staff follow procedures on a regular basis. Health Care Services will work with the State Controller’s Office and other necessary oversight entities to ensure compliance on an ongoing basis.	30