Recurring Findings

Public Health: Recurring Less severe Noncompliance
Federal Program Issue First Year Reported
Department's Assertion Page Number
HIV Care Formula Grants During our fiscal year 2012-13 audit, we reported that Public Health did not have adequate controls over subawards. Public Health did not properly communicate the Catalog of Federal Domestic Assistance (CFDA) title and number for the nine subrecipients tested. Public Health is in the process of notifying subrecipients of the CFDA title and number, but again did not communicate this information during fiscal year 2013-14. Failure to properly communicate award information increases the risk that subrecipients may inappropriately spend federal funds or fail to comply with federal regulations, including OMB Circular A-133 audit requirements. Public Health passed through $23.8 million to subrecipients during fiscal year 2013-14. N/A
Public Health agrees with the recommendation for State Fiscal Year 2013-14 and will immediately implement policies and procedures to communicate the CFDA title and number to subrecipients. Public Health will immediately communicate the CFDA number and title via email and Management Memo issued to subrecipients and is processing amended contracts with an effective date of April 1, 2015, which is in State Fiscal Year 2014-15. Public Health will display the CFDA title and number on the amended contract scopes of work and have notified OA contract processing staff that inclusion of the CFDA number and title is standard practice. Public Health is amending contracts with an effective date of April 1, 2015 and thereafter to display the CFDA number and title in the scope of work. Public Health did fail to implement part of itís the corrective action plan. The steps taken by Public Health were: 1. CDPH did not immediately communicate CFDA number and title through informal written communication, but is doing so now; 2. immediately revised Public Health contract policies and procedures to include the CDFA number and title in the scope of work; and, 3. developed a formal implementation plan that was initiated through Management Memos and review of Contracts Management Unit subject memo and contract amendments. Public Health was unable to change existing contracts in place during State Fiscal Year 2013-14 due to time needed to amend contracts. However, Public Health took the above steps to implement the corrective action plan that resulted in contract amendments for State Fiscal Year 2014-15, which have an effective start date of April 1, 2015. 78