FAC Explorer

Audit 18049

FY End
2022-06-30
Total Expended
$2.63M
Findings
4
Programs
2
Organization: The Osborn Family Health Center, Inc. (NJ)
Year: 2022 Accepted: 2023-03-23
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
22749 2022-001 Significant Deficiency Yes I
22750 2022-001 Significant Deficiency Yes I
599191 2022-001 Significant Deficiency Yes I
599192 2022-001 Significant Deficiency Yes I

Programs

ALN Program Spent Major Findings
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $1.84M Yes 1
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $788,290 Yes 1

Contacts

Name Title Type
RG5SNBSPMR73 Sabrina Cannady Auditee
8563657726 Gil Bernhard Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the federal and state awards of The Osborn Family Health Center, Inc. (the Center) under programs of the federal and New Jersey state governments for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and State of New Jersey, Department of Treasury, Office of Management and Budget Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants, and State Aid. Because the Schedule presents only a selected portion of the operations of the Center, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Center. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and State of New Jersey, Department of Treasury, Office of Management and Budget Circular 15-08, Single Audit Policy for Recipients of Federal Grants, State Grants and State Aid wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Center has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance because it is not applicable.

Finding Details

Finding 2022-001
Item 2022-001 - Proper Documentation of Timely Verification of Suspension and Debarment: U.S. Department of Health and Human Services, Health Center Program Cluster: Assistance Listing Number 93.224/ 93.527) - Procurement, Suspension and Debarment (Significant Deficiency) Criteria: Nonfederal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Statement of condition: The Center was unable to provide any evidence of their verification of whether 35 sample employees whose salaries are charged to the Health Center Program are suspended or debarred. Cause: A transition in the employees performing the control caused data loss. Effect: This condition may lead to noncompliance with suspension and debarment requirements and may also lead to questioned costs. Questioned costs: None noted. Context: 35 out of the 60 samples tested did not have evidence of verification of suspension and debarment. Identification as a repeat finding: This is a repeat finding and was reported as item 2021-004 in the 2021 Summary of Findings and Questioned Costs. Recommendation: We recommend that the Center strictly implement its control procedures in relation to the verification of employees' suspension or debarment and that the Center ensure that evidence of performance of such control be maintained. Management response: Management concurs with the finding and has already established a process for ensuring that documentation for the verification of employees for suspension and debarment is maintained.
Finding 2022-001
Item 2022-001 - Proper Documentation of Timely Verification of Suspension and Debarment: U.S. Department of Health and Human Services, Health Center Program Cluster: Assistance Listing Number 93.224/ 93.527) - Procurement, Suspension and Debarment (Significant Deficiency) Criteria: Nonfederal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Statement of condition: The Center was unable to provide any evidence of their verification of whether 35 sample employees whose salaries are charged to the Health Center Program are suspended or debarred. Cause: A transition in the employees performing the control caused data loss. Effect: This condition may lead to noncompliance with suspension and debarment requirements and may also lead to questioned costs. Questioned costs: None noted. Context: 35 out of the 60 samples tested did not have evidence of verification of suspension and debarment. Identification as a repeat finding: This is a repeat finding and was reported as item 2021-004 in the 2021 Summary of Findings and Questioned Costs. Recommendation: We recommend that the Center strictly implement its control procedures in relation to the verification of employees' suspension or debarment and that the Center ensure that evidence of performance of such control be maintained. Management response: Management concurs with the finding and has already established a process for ensuring that documentation for the verification of employees for suspension and debarment is maintained.
Finding 2022-001
Item 2022-001 - Proper Documentation of Timely Verification of Suspension and Debarment: U.S. Department of Health and Human Services, Health Center Program Cluster: Assistance Listing Number 93.224/ 93.527) - Procurement, Suspension and Debarment (Significant Deficiency) Criteria: Nonfederal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Statement of condition: The Center was unable to provide any evidence of their verification of whether 35 sample employees whose salaries are charged to the Health Center Program are suspended or debarred. Cause: A transition in the employees performing the control caused data loss. Effect: This condition may lead to noncompliance with suspension and debarment requirements and may also lead to questioned costs. Questioned costs: None noted. Context: 35 out of the 60 samples tested did not have evidence of verification of suspension and debarment. Identification as a repeat finding: This is a repeat finding and was reported as item 2021-004 in the 2021 Summary of Findings and Questioned Costs. Recommendation: We recommend that the Center strictly implement its control procedures in relation to the verification of employees' suspension or debarment and that the Center ensure that evidence of performance of such control be maintained. Management response: Management concurs with the finding and has already established a process for ensuring that documentation for the verification of employees for suspension and debarment is maintained.
Finding 2022-001
Item 2022-001 - Proper Documentation of Timely Verification of Suspension and Debarment: U.S. Department of Health and Human Services, Health Center Program Cluster: Assistance Listing Number 93.224/ 93.527) - Procurement, Suspension and Debarment (Significant Deficiency) Criteria: Nonfederal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. Statement of condition: The Center was unable to provide any evidence of their verification of whether 35 sample employees whose salaries are charged to the Health Center Program are suspended or debarred. Cause: A transition in the employees performing the control caused data loss. Effect: This condition may lead to noncompliance with suspension and debarment requirements and may also lead to questioned costs. Questioned costs: None noted. Context: 35 out of the 60 samples tested did not have evidence of verification of suspension and debarment. Identification as a repeat finding: This is a repeat finding and was reported as item 2021-004 in the 2021 Summary of Findings and Questioned Costs. Recommendation: We recommend that the Center strictly implement its control procedures in relation to the verification of employees' suspension or debarment and that the Center ensure that evidence of performance of such control be maintained. Management response: Management concurs with the finding and has already established a process for ensuring that documentation for the verification of employees for suspension and debarment is maintained.