Condition: Prior to adjustments proposed and recorded in conjunction with the audit, Federal HRSA grant income was overstated during the year. Criteria: Federal HRSA grant income should be recognized at the time that grants are awarded to the Center. Cause: When HRSA funding was received during the year, the Center was properly relieving the receivable for Federal HRSA awards, but was also recording a second entry to recognize grant income and reduce net assets. Effect: Grant income is initially recorded at the time a Notice of Award is received; making an additional entry to record grant income when funding is received is duplicative and serves to overstate grant income. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: Management should continue to recognize Federal HRSA grant income upon the Notice of Award and should continue to relieve the receivable in conjunction with funding; management should discontinue the second adjustment in conjunction with funding which serves to overstate grant income and decrease net assets. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. Starting in FY23 we are going to continue to recognize Federal HRSA grant income upon the Notice of Award and relieve the receivable each time a draw is taken. We will discontinue the adjustment which serves to overstate grant income and decrease net assets.
Condition: The Center reconciled cash at year-end, but did not adjust the general ledger; accordingly, prior to an adjustment proposed and recorded in conjunction with the audit, the cash balance per the general ledger did not agree to the cash balance per the bank reconciliation. Criteria: The cash balance per the general ledger should be reconciled to the cash balance per the bank reconciliation on a monthly basis; differences should be addressed in a timely manner. Cause: The Center's payroll provider drew cash from the Center's bank account to fund the final payroll of the year ended June 30, 2022 prior to June 30, 2022; the transaction was recorded in the general ledger after year-end. Additionally, the Center had not accrued for the final payroll of the year ended June 30, 2022. Effect: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center's payroll expense was understated as of and for the year ended June 30, 2022. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should timely resolve bank reconciliation differences on a monthly basis and should evaluate its payroll accrual at the end of each month. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and we are reconciling the bank statement to the general ledger and evaluating the payroll accrual at the end of each month during FY23. We have hired a new third-party bookkeeping company to provide this reconciliation and assist with the evaluation of the payroll accrual each month.
Condition: Prior to an adjustment proposed and recorded in conjunction with the audit, HRSA Notice of Award #13-01 was recorded on a cash basis, rather than being recognized upon notification of the grant. Criteria: Grant income related to unconditional grants should be recognized at the time that grants are awarded to the Center. Cause: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center had not recorded grant income related to an unconditional grant that was awarded during the year ended June 30, 2022. Effect: The practice of recording unconditional grants at the time they are received in cash is inconsistent with the Center's accounting policy and can serve to understate revenue and receivables relative to grants. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should record grants in full at the time that they receive notice of the grant, rather than the time at which payment is received. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and the Center will continue to follow policy of recognizing NOAs when received. There was one NOA that was not recognized during the year ended June 30, 2022 due an oversight by a former employee.
Condition: Account reconciliations of balance sheet accounts were not performed on a timely basis throughout the year. Criteria: Account reconciliations of balance sheet accounts should occur monthly to facilitate accurate financial reporting and aid in the identification of potential errors throughout the year. Cause: The lack of account reconciliations and/or evaluations of balance sheet accounts was due in large part to turnover within the Center's Finance Department during the current fiscal year. Effect: The lack of balance sheet account reconciliations resulted in several audit adjustments to true up year-end balances. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should reconcile all balance sheet accounts at the end of each month and evaluate the need for revisions in estimates such as the receivable allowances. This process should include a monthly update to the fixed asset and depreciation records. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. The Center will reconcile balance sheet accounts monthly in partnership with the new third-party bookkeeping company.
Condition: Prior to adjustments proposed and recorded in conjunction with the audit, Federal HRSA grant income was overstated during the year. Criteria: Federal HRSA grant income should be recognized at the time that grants are awarded to the Center. Cause: When HRSA funding was received during the year, the Center was properly relieving the receivable for Federal HRSA awards, but was also recording a second entry to recognize grant income and reduce net assets. Effect: Grant income is initially recorded at the time a Notice of Award is received; making an additional entry to record grant income when funding is received is duplicative and serves to overstate grant income. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: Management should continue to recognize Federal HRSA grant income upon the Notice of Award and should continue to relieve the receivable in conjunction with funding; management should discontinue the second adjustment in conjunction with funding which serves to overstate grant income and decrease net assets. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. Starting in FY23 we are going to continue to recognize Federal HRSA grant income upon the Notice of Award and relieve the receivable each time a draw is taken. We will discontinue the adjustment which serves to overstate grant income and decrease net assets.
Condition: The Center reconciled cash at year-end, but did not adjust the general ledger; accordingly, prior to an adjustment proposed and recorded in conjunction with the audit, the cash balance per the general ledger did not agree to the cash balance per the bank reconciliation. Criteria: The cash balance per the general ledger should be reconciled to the cash balance per the bank reconciliation on a monthly basis; differences should be addressed in a timely manner. Cause: The Center's payroll provider drew cash from the Center's bank account to fund the final payroll of the year ended June 30, 2022 prior to June 30, 2022; the transaction was recorded in the general ledger after year-end. Additionally, the Center had not accrued for the final payroll of the year ended June 30, 2022. Effect: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center's payroll expense was understated as of and for the year ended June 30, 2022. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should timely resolve bank reconciliation differences on a monthly basis and should evaluate its payroll accrual at the end of each month. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and we are reconciling the bank statement to the general ledger and evaluating the payroll accrual at the end of each month during FY23. We have hired a new third-party bookkeeping company to provide this reconciliation and assist with the evaluation of the payroll accrual each month.
Condition: Prior to an adjustment proposed and recorded in conjunction with the audit, HRSA Notice of Award #13-01 was recorded on a cash basis, rather than being recognized upon notification of the grant. Criteria: Grant income related to unconditional grants should be recognized at the time that grants are awarded to the Center. Cause: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center had not recorded grant income related to an unconditional grant that was awarded during the year ended June 30, 2022. Effect: The practice of recording unconditional grants at the time they are received in cash is inconsistent with the Center's accounting policy and can serve to understate revenue and receivables relative to grants. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should record grants in full at the time that they receive notice of the grant, rather than the time at which payment is received. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and the Center will continue to follow policy of recognizing NOAs when received. There was one NOA that was not recognized during the year ended June 30, 2022 due an oversight by a former employee.
Condition: Account reconciliations of balance sheet accounts were not performed on a timely basis throughout the year. Criteria: Account reconciliations of balance sheet accounts should occur monthly to facilitate accurate financial reporting and aid in the identification of potential errors throughout the year. Cause: The lack of account reconciliations and/or evaluations of balance sheet accounts was due in large part to turnover within the Center's Finance Department during the current fiscal year. Effect: The lack of balance sheet account reconciliations resulted in several audit adjustments to true up year-end balances. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should reconcile all balance sheet accounts at the end of each month and evaluate the need for revisions in estimates such as the receivable allowances. This process should include a monthly update to the fixed asset and depreciation records. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. The Center will reconcile balance sheet accounts monthly in partnership with the new third-party bookkeeping company.
Condition: Prior to adjustments proposed and recorded in conjunction with the audit, Federal HRSA grant income was overstated during the year. Criteria: Federal HRSA grant income should be recognized at the time that grants are awarded to the Center. Cause: When HRSA funding was received during the year, the Center was properly relieving the receivable for Federal HRSA awards, but was also recording a second entry to recognize grant income and reduce net assets. Effect: Grant income is initially recorded at the time a Notice of Award is received; making an additional entry to record grant income when funding is received is duplicative and serves to overstate grant income. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: Management should continue to recognize Federal HRSA grant income upon the Notice of Award and should continue to relieve the receivable in conjunction with funding; management should discontinue the second adjustment in conjunction with funding which serves to overstate grant income and decrease net assets. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. Starting in FY23 we are going to continue to recognize Federal HRSA grant income upon the Notice of Award and relieve the receivable each time a draw is taken. We will discontinue the adjustment which serves to overstate grant income and decrease net assets.
Condition: The Center reconciled cash at year-end, but did not adjust the general ledger; accordingly, prior to an adjustment proposed and recorded in conjunction with the audit, the cash balance per the general ledger did not agree to the cash balance per the bank reconciliation. Criteria: The cash balance per the general ledger should be reconciled to the cash balance per the bank reconciliation on a monthly basis; differences should be addressed in a timely manner. Cause: The Center's payroll provider drew cash from the Center's bank account to fund the final payroll of the year ended June 30, 2022 prior to June 30, 2022; the transaction was recorded in the general ledger after year-end. Additionally, the Center had not accrued for the final payroll of the year ended June 30, 2022. Effect: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center's payroll expense was understated as of and for the year ended June 30, 2022. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should timely resolve bank reconciliation differences on a monthly basis and should evaluate its payroll accrual at the end of each month. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and we are reconciling the bank statement to the general ledger and evaluating the payroll accrual at the end of each month during FY23. We have hired a new third-party bookkeeping company to provide this reconciliation and assist with the evaluation of the payroll accrual each month.
Condition: Prior to an adjustment proposed and recorded in conjunction with the audit, HRSA Notice of Award #13-01 was recorded on a cash basis, rather than being recognized upon notification of the grant. Criteria: Grant income related to unconditional grants should be recognized at the time that grants are awarded to the Center. Cause: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center had not recorded grant income related to an unconditional grant that was awarded during the year ended June 30, 2022. Effect: The practice of recording unconditional grants at the time they are received in cash is inconsistent with the Center's accounting policy and can serve to understate revenue and receivables relative to grants. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should record grants in full at the time that they receive notice of the grant, rather than the time at which payment is received. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and the Center will continue to follow policy of recognizing NOAs when received. There was one NOA that was not recognized during the year ended June 30, 2022 due an oversight by a former employee.
Condition: Account reconciliations of balance sheet accounts were not performed on a timely basis throughout the year. Criteria: Account reconciliations of balance sheet accounts should occur monthly to facilitate accurate financial reporting and aid in the identification of potential errors throughout the year. Cause: The lack of account reconciliations and/or evaluations of balance sheet accounts was due in large part to turnover within the Center's Finance Department during the current fiscal year. Effect: The lack of balance sheet account reconciliations resulted in several audit adjustments to true up year-end balances. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should reconcile all balance sheet accounts at the end of each month and evaluate the need for revisions in estimates such as the receivable allowances. This process should include a monthly update to the fixed asset and depreciation records. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. The Center will reconcile balance sheet accounts monthly in partnership with the new third-party bookkeeping company.
Condition: Prior to adjustments proposed and recorded in conjunction with the audit, Federal HRSA grant income was overstated during the year. Criteria: Federal HRSA grant income should be recognized at the time that grants are awarded to the Center. Cause: When HRSA funding was received during the year, the Center was properly relieving the receivable for Federal HRSA awards, but was also recording a second entry to recognize grant income and reduce net assets. Effect: Grant income is initially recorded at the time a Notice of Award is received; making an additional entry to record grant income when funding is received is duplicative and serves to overstate grant income. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: Management should continue to recognize Federal HRSA grant income upon the Notice of Award and should continue to relieve the receivable in conjunction with funding; management should discontinue the second adjustment in conjunction with funding which serves to overstate grant income and decrease net assets. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. Starting in FY23 we are going to continue to recognize Federal HRSA grant income upon the Notice of Award and relieve the receivable each time a draw is taken. We will discontinue the adjustment which serves to overstate grant income and decrease net assets.
Condition: The Center reconciled cash at year-end, but did not adjust the general ledger; accordingly, prior to an adjustment proposed and recorded in conjunction with the audit, the cash balance per the general ledger did not agree to the cash balance per the bank reconciliation. Criteria: The cash balance per the general ledger should be reconciled to the cash balance per the bank reconciliation on a monthly basis; differences should be addressed in a timely manner. Cause: The Center's payroll provider drew cash from the Center's bank account to fund the final payroll of the year ended June 30, 2022 prior to June 30, 2022; the transaction was recorded in the general ledger after year-end. Additionally, the Center had not accrued for the final payroll of the year ended June 30, 2022. Effect: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center's payroll expense was understated as of and for the year ended June 30, 2022. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should timely resolve bank reconciliation differences on a monthly basis and should evaluate its payroll accrual at the end of each month. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and we are reconciling the bank statement to the general ledger and evaluating the payroll accrual at the end of each month during FY23. We have hired a new third-party bookkeeping company to provide this reconciliation and assist with the evaluation of the payroll accrual each month.
Condition: Prior to an adjustment proposed and recorded in conjunction with the audit, HRSA Notice of Award #13-01 was recorded on a cash basis, rather than being recognized upon notification of the grant. Criteria: Grant income related to unconditional grants should be recognized at the time that grants are awarded to the Center. Cause: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center had not recorded grant income related to an unconditional grant that was awarded during the year ended June 30, 2022. Effect: The practice of recording unconditional grants at the time they are received in cash is inconsistent with the Center's accounting policy and can serve to understate revenue and receivables relative to grants. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should record grants in full at the time that they receive notice of the grant, rather than the time at which payment is received. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and the Center will continue to follow policy of recognizing NOAs when received. There was one NOA that was not recognized during the year ended June 30, 2022 due an oversight by a former employee.
Condition: Account reconciliations of balance sheet accounts were not performed on a timely basis throughout the year. Criteria: Account reconciliations of balance sheet accounts should occur monthly to facilitate accurate financial reporting and aid in the identification of potential errors throughout the year. Cause: The lack of account reconciliations and/or evaluations of balance sheet accounts was due in large part to turnover within the Center's Finance Department during the current fiscal year. Effect: The lack of balance sheet account reconciliations resulted in several audit adjustments to true up year-end balances. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should reconcile all balance sheet accounts at the end of each month and evaluate the need for revisions in estimates such as the receivable allowances. This process should include a monthly update to the fixed asset and depreciation records. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. The Center will reconcile balance sheet accounts monthly in partnership with the new third-party bookkeeping company.
Condition: Prior to adjustments proposed and recorded in conjunction with the audit, Federal HRSA grant income was overstated during the year. Criteria: Federal HRSA grant income should be recognized at the time that grants are awarded to the Center. Cause: When HRSA funding was received during the year, the Center was properly relieving the receivable for Federal HRSA awards, but was also recording a second entry to recognize grant income and reduce net assets. Effect: Grant income is initially recorded at the time a Notice of Award is received; making an additional entry to record grant income when funding is received is duplicative and serves to overstate grant income. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: Management should continue to recognize Federal HRSA grant income upon the Notice of Award and should continue to relieve the receivable in conjunction with funding; management should discontinue the second adjustment in conjunction with funding which serves to overstate grant income and decrease net assets. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. Starting in FY23 we are going to continue to recognize Federal HRSA grant income upon the Notice of Award and relieve the receivable each time a draw is taken. We will discontinue the adjustment which serves to overstate grant income and decrease net assets.
Condition: The Center reconciled cash at year-end, but did not adjust the general ledger; accordingly, prior to an adjustment proposed and recorded in conjunction with the audit, the cash balance per the general ledger did not agree to the cash balance per the bank reconciliation. Criteria: The cash balance per the general ledger should be reconciled to the cash balance per the bank reconciliation on a monthly basis; differences should be addressed in a timely manner. Cause: The Center's payroll provider drew cash from the Center's bank account to fund the final payroll of the year ended June 30, 2022 prior to June 30, 2022; the transaction was recorded in the general ledger after year-end. Additionally, the Center had not accrued for the final payroll of the year ended June 30, 2022. Effect: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center's payroll expense was understated as of and for the year ended June 30, 2022. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should timely resolve bank reconciliation differences on a monthly basis and should evaluate its payroll accrual at the end of each month. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and we are reconciling the bank statement to the general ledger and evaluating the payroll accrual at the end of each month during FY23. We have hired a new third-party bookkeeping company to provide this reconciliation and assist with the evaluation of the payroll accrual each month.
Condition: Prior to an adjustment proposed and recorded in conjunction with the audit, HRSA Notice of Award #13-01 was recorded on a cash basis, rather than being recognized upon notification of the grant. Criteria: Grant income related to unconditional grants should be recognized at the time that grants are awarded to the Center. Cause: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center had not recorded grant income related to an unconditional grant that was awarded during the year ended June 30, 2022. Effect: The practice of recording unconditional grants at the time they are received in cash is inconsistent with the Center's accounting policy and can serve to understate revenue and receivables relative to grants. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should record grants in full at the time that they receive notice of the grant, rather than the time at which payment is received. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and the Center will continue to follow policy of recognizing NOAs when received. There was one NOA that was not recognized during the year ended June 30, 2022 due an oversight by a former employee.
Condition: Account reconciliations of balance sheet accounts were not performed on a timely basis throughout the year. Criteria: Account reconciliations of balance sheet accounts should occur monthly to facilitate accurate financial reporting and aid in the identification of potential errors throughout the year. Cause: The lack of account reconciliations and/or evaluations of balance sheet accounts was due in large part to turnover within the Center's Finance Department during the current fiscal year. Effect: The lack of balance sheet account reconciliations resulted in several audit adjustments to true up year-end balances. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should reconcile all balance sheet accounts at the end of each month and evaluate the need for revisions in estimates such as the receivable allowances. This process should include a monthly update to the fixed asset and depreciation records. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. The Center will reconcile balance sheet accounts monthly in partnership with the new third-party bookkeeping company.
Condition: Prior to adjustments proposed and recorded in conjunction with the audit, Federal HRSA grant income was overstated during the year. Criteria: Federal HRSA grant income should be recognized at the time that grants are awarded to the Center. Cause: When HRSA funding was received during the year, the Center was properly relieving the receivable for Federal HRSA awards, but was also recording a second entry to recognize grant income and reduce net assets. Effect: Grant income is initially recorded at the time a Notice of Award is received; making an additional entry to record grant income when funding is received is duplicative and serves to overstate grant income. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: Management should continue to recognize Federal HRSA grant income upon the Notice of Award and should continue to relieve the receivable in conjunction with funding; management should discontinue the second adjustment in conjunction with funding which serves to overstate grant income and decrease net assets. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. Starting in FY23 we are going to continue to recognize Federal HRSA grant income upon the Notice of Award and relieve the receivable each time a draw is taken. We will discontinue the adjustment which serves to overstate grant income and decrease net assets.
Condition: The Center reconciled cash at year-end, but did not adjust the general ledger; accordingly, prior to an adjustment proposed and recorded in conjunction with the audit, the cash balance per the general ledger did not agree to the cash balance per the bank reconciliation. Criteria: The cash balance per the general ledger should be reconciled to the cash balance per the bank reconciliation on a monthly basis; differences should be addressed in a timely manner. Cause: The Center's payroll provider drew cash from the Center's bank account to fund the final payroll of the year ended June 30, 2022 prior to June 30, 2022; the transaction was recorded in the general ledger after year-end. Additionally, the Center had not accrued for the final payroll of the year ended June 30, 2022. Effect: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center's payroll expense was understated as of and for the year ended June 30, 2022. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should timely resolve bank reconciliation differences on a monthly basis and should evaluate its payroll accrual at the end of each month. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and we are reconciling the bank statement to the general ledger and evaluating the payroll accrual at the end of each month during FY23. We have hired a new third-party bookkeeping company to provide this reconciliation and assist with the evaluation of the payroll accrual each month.
Condition: Prior to an adjustment proposed and recorded in conjunction with the audit, HRSA Notice of Award #13-01 was recorded on a cash basis, rather than being recognized upon notification of the grant. Criteria: Grant income related to unconditional grants should be recognized at the time that grants are awarded to the Center. Cause: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center had not recorded grant income related to an unconditional grant that was awarded during the year ended June 30, 2022. Effect: The practice of recording unconditional grants at the time they are received in cash is inconsistent with the Center's accounting policy and can serve to understate revenue and receivables relative to grants. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should record grants in full at the time that they receive notice of the grant, rather than the time at which payment is received. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and the Center will continue to follow policy of recognizing NOAs when received. There was one NOA that was not recognized during the year ended June 30, 2022 due an oversight by a former employee.
Condition: Account reconciliations of balance sheet accounts were not performed on a timely basis throughout the year. Criteria: Account reconciliations of balance sheet accounts should occur monthly to facilitate accurate financial reporting and aid in the identification of potential errors throughout the year. Cause: The lack of account reconciliations and/or evaluations of balance sheet accounts was due in large part to turnover within the Center's Finance Department during the current fiscal year. Effect: The lack of balance sheet account reconciliations resulted in several audit adjustments to true up year-end balances. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should reconcile all balance sheet accounts at the end of each month and evaluate the need for revisions in estimates such as the receivable allowances. This process should include a monthly update to the fixed asset and depreciation records. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. The Center will reconcile balance sheet accounts monthly in partnership with the new third-party bookkeeping company.
Condition: Prior to adjustments proposed and recorded in conjunction with the audit, Federal HRSA grant income was overstated during the year. Criteria: Federal HRSA grant income should be recognized at the time that grants are awarded to the Center. Cause: When HRSA funding was received during the year, the Center was properly relieving the receivable for Federal HRSA awards, but was also recording a second entry to recognize grant income and reduce net assets. Effect: Grant income is initially recorded at the time a Notice of Award is received; making an additional entry to record grant income when funding is received is duplicative and serves to overstate grant income. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: Management should continue to recognize Federal HRSA grant income upon the Notice of Award and should continue to relieve the receivable in conjunction with funding; management should discontinue the second adjustment in conjunction with funding which serves to overstate grant income and decrease net assets. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. Starting in FY23 we are going to continue to recognize Federal HRSA grant income upon the Notice of Award and relieve the receivable each time a draw is taken. We will discontinue the adjustment which serves to overstate grant income and decrease net assets.
Condition: The Center reconciled cash at year-end, but did not adjust the general ledger; accordingly, prior to an adjustment proposed and recorded in conjunction with the audit, the cash balance per the general ledger did not agree to the cash balance per the bank reconciliation. Criteria: The cash balance per the general ledger should be reconciled to the cash balance per the bank reconciliation on a monthly basis; differences should be addressed in a timely manner. Cause: The Center's payroll provider drew cash from the Center's bank account to fund the final payroll of the year ended June 30, 2022 prior to June 30, 2022; the transaction was recorded in the general ledger after year-end. Additionally, the Center had not accrued for the final payroll of the year ended June 30, 2022. Effect: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center's payroll expense was understated as of and for the year ended June 30, 2022. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should timely resolve bank reconciliation differences on a monthly basis and should evaluate its payroll accrual at the end of each month. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and we are reconciling the bank statement to the general ledger and evaluating the payroll accrual at the end of each month during FY23. We have hired a new third-party bookkeeping company to provide this reconciliation and assist with the evaluation of the payroll accrual each month.
Condition: Prior to an adjustment proposed and recorded in conjunction with the audit, HRSA Notice of Award #13-01 was recorded on a cash basis, rather than being recognized upon notification of the grant. Criteria: Grant income related to unconditional grants should be recognized at the time that grants are awarded to the Center. Cause: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center had not recorded grant income related to an unconditional grant that was awarded during the year ended June 30, 2022. Effect: The practice of recording unconditional grants at the time they are received in cash is inconsistent with the Center's accounting policy and can serve to understate revenue and receivables relative to grants. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should record grants in full at the time that they receive notice of the grant, rather than the time at which payment is received. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and the Center will continue to follow policy of recognizing NOAs when received. There was one NOA that was not recognized during the year ended June 30, 2022 due an oversight by a former employee.
Condition: Account reconciliations of balance sheet accounts were not performed on a timely basis throughout the year. Criteria: Account reconciliations of balance sheet accounts should occur monthly to facilitate accurate financial reporting and aid in the identification of potential errors throughout the year. Cause: The lack of account reconciliations and/or evaluations of balance sheet accounts was due in large part to turnover within the Center's Finance Department during the current fiscal year. Effect: The lack of balance sheet account reconciliations resulted in several audit adjustments to true up year-end balances. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should reconcile all balance sheet accounts at the end of each month and evaluate the need for revisions in estimates such as the receivable allowances. This process should include a monthly update to the fixed asset and depreciation records. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. The Center will reconcile balance sheet accounts monthly in partnership with the new third-party bookkeeping company.
Condition: Prior to adjustments proposed and recorded in conjunction with the audit, Federal HRSA grant income was overstated during the year. Criteria: Federal HRSA grant income should be recognized at the time that grants are awarded to the Center. Cause: When HRSA funding was received during the year, the Center was properly relieving the receivable for Federal HRSA awards, but was also recording a second entry to recognize grant income and reduce net assets. Effect: Grant income is initially recorded at the time a Notice of Award is received; making an additional entry to record grant income when funding is received is duplicative and serves to overstate grant income. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: Management should continue to recognize Federal HRSA grant income upon the Notice of Award and should continue to relieve the receivable in conjunction with funding; management should discontinue the second adjustment in conjunction with funding which serves to overstate grant income and decrease net assets. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. Starting in FY23 we are going to continue to recognize Federal HRSA grant income upon the Notice of Award and relieve the receivable each time a draw is taken. We will discontinue the adjustment which serves to overstate grant income and decrease net assets.
Condition: The Center reconciled cash at year-end, but did not adjust the general ledger; accordingly, prior to an adjustment proposed and recorded in conjunction with the audit, the cash balance per the general ledger did not agree to the cash balance per the bank reconciliation. Criteria: The cash balance per the general ledger should be reconciled to the cash balance per the bank reconciliation on a monthly basis; differences should be addressed in a timely manner. Cause: The Center's payroll provider drew cash from the Center's bank account to fund the final payroll of the year ended June 30, 2022 prior to June 30, 2022; the transaction was recorded in the general ledger after year-end. Additionally, the Center had not accrued for the final payroll of the year ended June 30, 2022. Effect: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center's payroll expense was understated as of and for the year ended June 30, 2022. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should timely resolve bank reconciliation differences on a monthly basis and should evaluate its payroll accrual at the end of each month. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and we are reconciling the bank statement to the general ledger and evaluating the payroll accrual at the end of each month during FY23. We have hired a new third-party bookkeeping company to provide this reconciliation and assist with the evaluation of the payroll accrual each month.
Condition: Prior to an adjustment proposed and recorded in conjunction with the audit, HRSA Notice of Award #13-01 was recorded on a cash basis, rather than being recognized upon notification of the grant. Criteria: Grant income related to unconditional grants should be recognized at the time that grants are awarded to the Center. Cause: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center had not recorded grant income related to an unconditional grant that was awarded during the year ended June 30, 2022. Effect: The practice of recording unconditional grants at the time they are received in cash is inconsistent with the Center's accounting policy and can serve to understate revenue and receivables relative to grants. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should record grants in full at the time that they receive notice of the grant, rather than the time at which payment is received. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and the Center will continue to follow policy of recognizing NOAs when received. There was one NOA that was not recognized during the year ended June 30, 2022 due an oversight by a former employee.
Condition: Account reconciliations of balance sheet accounts were not performed on a timely basis throughout the year. Criteria: Account reconciliations of balance sheet accounts should occur monthly to facilitate accurate financial reporting and aid in the identification of potential errors throughout the year. Cause: The lack of account reconciliations and/or evaluations of balance sheet accounts was due in large part to turnover within the Center's Finance Department during the current fiscal year. Effect: The lack of balance sheet account reconciliations resulted in several audit adjustments to true up year-end balances. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should reconcile all balance sheet accounts at the end of each month and evaluate the need for revisions in estimates such as the receivable allowances. This process should include a monthly update to the fixed asset and depreciation records. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. The Center will reconcile balance sheet accounts monthly in partnership with the new third-party bookkeeping company.
Condition: Prior to adjustments proposed and recorded in conjunction with the audit, Federal HRSA grant income was overstated during the year. Criteria: Federal HRSA grant income should be recognized at the time that grants are awarded to the Center. Cause: When HRSA funding was received during the year, the Center was properly relieving the receivable for Federal HRSA awards, but was also recording a second entry to recognize grant income and reduce net assets. Effect: Grant income is initially recorded at the time a Notice of Award is received; making an additional entry to record grant income when funding is received is duplicative and serves to overstate grant income. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: Management should continue to recognize Federal HRSA grant income upon the Notice of Award and should continue to relieve the receivable in conjunction with funding; management should discontinue the second adjustment in conjunction with funding which serves to overstate grant income and decrease net assets. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. Starting in FY23 we are going to continue to recognize Federal HRSA grant income upon the Notice of Award and relieve the receivable each time a draw is taken. We will discontinue the adjustment which serves to overstate grant income and decrease net assets.
Condition: The Center reconciled cash at year-end, but did not adjust the general ledger; accordingly, prior to an adjustment proposed and recorded in conjunction with the audit, the cash balance per the general ledger did not agree to the cash balance per the bank reconciliation. Criteria: The cash balance per the general ledger should be reconciled to the cash balance per the bank reconciliation on a monthly basis; differences should be addressed in a timely manner. Cause: The Center's payroll provider drew cash from the Center's bank account to fund the final payroll of the year ended June 30, 2022 prior to June 30, 2022; the transaction was recorded in the general ledger after year-end. Additionally, the Center had not accrued for the final payroll of the year ended June 30, 2022. Effect: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center's payroll expense was understated as of and for the year ended June 30, 2022. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should timely resolve bank reconciliation differences on a monthly basis and should evaluate its payroll accrual at the end of each month. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and we are reconciling the bank statement to the general ledger and evaluating the payroll accrual at the end of each month during FY23. We have hired a new third-party bookkeeping company to provide this reconciliation and assist with the evaluation of the payroll accrual each month.
Condition: Prior to an adjustment proposed and recorded in conjunction with the audit, HRSA Notice of Award #13-01 was recorded on a cash basis, rather than being recognized upon notification of the grant. Criteria: Grant income related to unconditional grants should be recognized at the time that grants are awarded to the Center. Cause: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center had not recorded grant income related to an unconditional grant that was awarded during the year ended June 30, 2022. Effect: The practice of recording unconditional grants at the time they are received in cash is inconsistent with the Center's accounting policy and can serve to understate revenue and receivables relative to grants. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should record grants in full at the time that they receive notice of the grant, rather than the time at which payment is received. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and the Center will continue to follow policy of recognizing NOAs when received. There was one NOA that was not recognized during the year ended June 30, 2022 due an oversight by a former employee.
Condition: Account reconciliations of balance sheet accounts were not performed on a timely basis throughout the year. Criteria: Account reconciliations of balance sheet accounts should occur monthly to facilitate accurate financial reporting and aid in the identification of potential errors throughout the year. Cause: The lack of account reconciliations and/or evaluations of balance sheet accounts was due in large part to turnover within the Center's Finance Department during the current fiscal year. Effect: The lack of balance sheet account reconciliations resulted in several audit adjustments to true up year-end balances. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should reconcile all balance sheet accounts at the end of each month and evaluate the need for revisions in estimates such as the receivable allowances. This process should include a monthly update to the fixed asset and depreciation records. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. The Center will reconcile balance sheet accounts monthly in partnership with the new third-party bookkeeping company.
Condition: Prior to adjustments proposed and recorded in conjunction with the audit, Federal HRSA grant income was overstated during the year. Criteria: Federal HRSA grant income should be recognized at the time that grants are awarded to the Center. Cause: When HRSA funding was received during the year, the Center was properly relieving the receivable for Federal HRSA awards, but was also recording a second entry to recognize grant income and reduce net assets. Effect: Grant income is initially recorded at the time a Notice of Award is received; making an additional entry to record grant income when funding is received is duplicative and serves to overstate grant income. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: Management should continue to recognize Federal HRSA grant income upon the Notice of Award and should continue to relieve the receivable in conjunction with funding; management should discontinue the second adjustment in conjunction with funding which serves to overstate grant income and decrease net assets. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. Starting in FY23 we are going to continue to recognize Federal HRSA grant income upon the Notice of Award and relieve the receivable each time a draw is taken. We will discontinue the adjustment which serves to overstate grant income and decrease net assets.
Condition: The Center reconciled cash at year-end, but did not adjust the general ledger; accordingly, prior to an adjustment proposed and recorded in conjunction with the audit, the cash balance per the general ledger did not agree to the cash balance per the bank reconciliation. Criteria: The cash balance per the general ledger should be reconciled to the cash balance per the bank reconciliation on a monthly basis; differences should be addressed in a timely manner. Cause: The Center's payroll provider drew cash from the Center's bank account to fund the final payroll of the year ended June 30, 2022 prior to June 30, 2022; the transaction was recorded in the general ledger after year-end. Additionally, the Center had not accrued for the final payroll of the year ended June 30, 2022. Effect: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center's payroll expense was understated as of and for the year ended June 30, 2022. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should timely resolve bank reconciliation differences on a monthly basis and should evaluate its payroll accrual at the end of each month. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and we are reconciling the bank statement to the general ledger and evaluating the payroll accrual at the end of each month during FY23. We have hired a new third-party bookkeeping company to provide this reconciliation and assist with the evaluation of the payroll accrual each month.
Condition: Prior to an adjustment proposed and recorded in conjunction with the audit, HRSA Notice of Award #13-01 was recorded on a cash basis, rather than being recognized upon notification of the grant. Criteria: Grant income related to unconditional grants should be recognized at the time that grants are awarded to the Center. Cause: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center had not recorded grant income related to an unconditional grant that was awarded during the year ended June 30, 2022. Effect: The practice of recording unconditional grants at the time they are received in cash is inconsistent with the Center's accounting policy and can serve to understate revenue and receivables relative to grants. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should record grants in full at the time that they receive notice of the grant, rather than the time at which payment is received. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and the Center will continue to follow policy of recognizing NOAs when received. There was one NOA that was not recognized during the year ended June 30, 2022 due an oversight by a former employee.
Condition: Account reconciliations of balance sheet accounts were not performed on a timely basis throughout the year. Criteria: Account reconciliations of balance sheet accounts should occur monthly to facilitate accurate financial reporting and aid in the identification of potential errors throughout the year. Cause: The lack of account reconciliations and/or evaluations of balance sheet accounts was due in large part to turnover within the Center's Finance Department during the current fiscal year. Effect: The lack of balance sheet account reconciliations resulted in several audit adjustments to true up year-end balances. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should reconcile all balance sheet accounts at the end of each month and evaluate the need for revisions in estimates such as the receivable allowances. This process should include a monthly update to the fixed asset and depreciation records. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. The Center will reconcile balance sheet accounts monthly in partnership with the new third-party bookkeeping company.
Condition: Prior to adjustments proposed and recorded in conjunction with the audit, Federal HRSA grant income was overstated during the year. Criteria: Federal HRSA grant income should be recognized at the time that grants are awarded to the Center. Cause: When HRSA funding was received during the year, the Center was properly relieving the receivable for Federal HRSA awards, but was also recording a second entry to recognize grant income and reduce net assets. Effect: Grant income is initially recorded at the time a Notice of Award is received; making an additional entry to record grant income when funding is received is duplicative and serves to overstate grant income. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: Management should continue to recognize Federal HRSA grant income upon the Notice of Award and should continue to relieve the receivable in conjunction with funding; management should discontinue the second adjustment in conjunction with funding which serves to overstate grant income and decrease net assets. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. Starting in FY23 we are going to continue to recognize Federal HRSA grant income upon the Notice of Award and relieve the receivable each time a draw is taken. We will discontinue the adjustment which serves to overstate grant income and decrease net assets.
Condition: The Center reconciled cash at year-end, but did not adjust the general ledger; accordingly, prior to an adjustment proposed and recorded in conjunction with the audit, the cash balance per the general ledger did not agree to the cash balance per the bank reconciliation. Criteria: The cash balance per the general ledger should be reconciled to the cash balance per the bank reconciliation on a monthly basis; differences should be addressed in a timely manner. Cause: The Center's payroll provider drew cash from the Center's bank account to fund the final payroll of the year ended June 30, 2022 prior to June 30, 2022; the transaction was recorded in the general ledger after year-end. Additionally, the Center had not accrued for the final payroll of the year ended June 30, 2022. Effect: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center's payroll expense was understated as of and for the year ended June 30, 2022. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should timely resolve bank reconciliation differences on a monthly basis and should evaluate its payroll accrual at the end of each month. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and we are reconciling the bank statement to the general ledger and evaluating the payroll accrual at the end of each month during FY23. We have hired a new third-party bookkeeping company to provide this reconciliation and assist with the evaluation of the payroll accrual each month.
Condition: Prior to an adjustment proposed and recorded in conjunction with the audit, HRSA Notice of Award #13-01 was recorded on a cash basis, rather than being recognized upon notification of the grant. Criteria: Grant income related to unconditional grants should be recognized at the time that grants are awarded to the Center. Cause: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center had not recorded grant income related to an unconditional grant that was awarded during the year ended June 30, 2022. Effect: The practice of recording unconditional grants at the time they are received in cash is inconsistent with the Center's accounting policy and can serve to understate revenue and receivables relative to grants. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should record grants in full at the time that they receive notice of the grant, rather than the time at which payment is received. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and the Center will continue to follow policy of recognizing NOAs when received. There was one NOA that was not recognized during the year ended June 30, 2022 due an oversight by a former employee.
Condition: Account reconciliations of balance sheet accounts were not performed on a timely basis throughout the year. Criteria: Account reconciliations of balance sheet accounts should occur monthly to facilitate accurate financial reporting and aid in the identification of potential errors throughout the year. Cause: The lack of account reconciliations and/or evaluations of balance sheet accounts was due in large part to turnover within the Center's Finance Department during the current fiscal year. Effect: The lack of balance sheet account reconciliations resulted in several audit adjustments to true up year-end balances. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should reconcile all balance sheet accounts at the end of each month and evaluate the need for revisions in estimates such as the receivable allowances. This process should include a monthly update to the fixed asset and depreciation records. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. The Center will reconcile balance sheet accounts monthly in partnership with the new third-party bookkeeping company.
Condition: Prior to adjustments proposed and recorded in conjunction with the audit, Federal HRSA grant income was overstated during the year. Criteria: Federal HRSA grant income should be recognized at the time that grants are awarded to the Center. Cause: When HRSA funding was received during the year, the Center was properly relieving the receivable for Federal HRSA awards, but was also recording a second entry to recognize grant income and reduce net assets. Effect: Grant income is initially recorded at the time a Notice of Award is received; making an additional entry to record grant income when funding is received is duplicative and serves to overstate grant income. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: Management should continue to recognize Federal HRSA grant income upon the Notice of Award and should continue to relieve the receivable in conjunction with funding; management should discontinue the second adjustment in conjunction with funding which serves to overstate grant income and decrease net assets. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. Starting in FY23 we are going to continue to recognize Federal HRSA grant income upon the Notice of Award and relieve the receivable each time a draw is taken. We will discontinue the adjustment which serves to overstate grant income and decrease net assets.
Condition: The Center reconciled cash at year-end, but did not adjust the general ledger; accordingly, prior to an adjustment proposed and recorded in conjunction with the audit, the cash balance per the general ledger did not agree to the cash balance per the bank reconciliation. Criteria: The cash balance per the general ledger should be reconciled to the cash balance per the bank reconciliation on a monthly basis; differences should be addressed in a timely manner. Cause: The Center's payroll provider drew cash from the Center's bank account to fund the final payroll of the year ended June 30, 2022 prior to June 30, 2022; the transaction was recorded in the general ledger after year-end. Additionally, the Center had not accrued for the final payroll of the year ended June 30, 2022. Effect: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center's payroll expense was understated as of and for the year ended June 30, 2022. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should timely resolve bank reconciliation differences on a monthly basis and should evaluate its payroll accrual at the end of each month. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and we are reconciling the bank statement to the general ledger and evaluating the payroll accrual at the end of each month during FY23. We have hired a new third-party bookkeeping company to provide this reconciliation and assist with the evaluation of the payroll accrual each month.
Condition: Prior to an adjustment proposed and recorded in conjunction with the audit, HRSA Notice of Award #13-01 was recorded on a cash basis, rather than being recognized upon notification of the grant. Criteria: Grant income related to unconditional grants should be recognized at the time that grants are awarded to the Center. Cause: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center had not recorded grant income related to an unconditional grant that was awarded during the year ended June 30, 2022. Effect: The practice of recording unconditional grants at the time they are received in cash is inconsistent with the Center's accounting policy and can serve to understate revenue and receivables relative to grants. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should record grants in full at the time that they receive notice of the grant, rather than the time at which payment is received. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and the Center will continue to follow policy of recognizing NOAs when received. There was one NOA that was not recognized during the year ended June 30, 2022 due an oversight by a former employee.
Condition: Account reconciliations of balance sheet accounts were not performed on a timely basis throughout the year. Criteria: Account reconciliations of balance sheet accounts should occur monthly to facilitate accurate financial reporting and aid in the identification of potential errors throughout the year. Cause: The lack of account reconciliations and/or evaluations of balance sheet accounts was due in large part to turnover within the Center's Finance Department during the current fiscal year. Effect: The lack of balance sheet account reconciliations resulted in several audit adjustments to true up year-end balances. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should reconcile all balance sheet accounts at the end of each month and evaluate the need for revisions in estimates such as the receivable allowances. This process should include a monthly update to the fixed asset and depreciation records. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. The Center will reconcile balance sheet accounts monthly in partnership with the new third-party bookkeeping company.
Condition: Prior to adjustments proposed and recorded in conjunction with the audit, Federal HRSA grant income was overstated during the year. Criteria: Federal HRSA grant income should be recognized at the time that grants are awarded to the Center. Cause: When HRSA funding was received during the year, the Center was properly relieving the receivable for Federal HRSA awards, but was also recording a second entry to recognize grant income and reduce net assets. Effect: Grant income is initially recorded at the time a Notice of Award is received; making an additional entry to record grant income when funding is received is duplicative and serves to overstate grant income. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: Management should continue to recognize Federal HRSA grant income upon the Notice of Award and should continue to relieve the receivable in conjunction with funding; management should discontinue the second adjustment in conjunction with funding which serves to overstate grant income and decrease net assets. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. Starting in FY23 we are going to continue to recognize Federal HRSA grant income upon the Notice of Award and relieve the receivable each time a draw is taken. We will discontinue the adjustment which serves to overstate grant income and decrease net assets.
Condition: The Center reconciled cash at year-end, but did not adjust the general ledger; accordingly, prior to an adjustment proposed and recorded in conjunction with the audit, the cash balance per the general ledger did not agree to the cash balance per the bank reconciliation. Criteria: The cash balance per the general ledger should be reconciled to the cash balance per the bank reconciliation on a monthly basis; differences should be addressed in a timely manner. Cause: The Center's payroll provider drew cash from the Center's bank account to fund the final payroll of the year ended June 30, 2022 prior to June 30, 2022; the transaction was recorded in the general ledger after year-end. Additionally, the Center had not accrued for the final payroll of the year ended June 30, 2022. Effect: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center's payroll expense was understated as of and for the year ended June 30, 2022. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should timely resolve bank reconciliation differences on a monthly basis and should evaluate its payroll accrual at the end of each month. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and we are reconciling the bank statement to the general ledger and evaluating the payroll accrual at the end of each month during FY23. We have hired a new third-party bookkeeping company to provide this reconciliation and assist with the evaluation of the payroll accrual each month.
Condition: Prior to an adjustment proposed and recorded in conjunction with the audit, HRSA Notice of Award #13-01 was recorded on a cash basis, rather than being recognized upon notification of the grant. Criteria: Grant income related to unconditional grants should be recognized at the time that grants are awarded to the Center. Cause: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center had not recorded grant income related to an unconditional grant that was awarded during the year ended June 30, 2022. Effect: The practice of recording unconditional grants at the time they are received in cash is inconsistent with the Center's accounting policy and can serve to understate revenue and receivables relative to grants. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should record grants in full at the time that they receive notice of the grant, rather than the time at which payment is received. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and the Center will continue to follow policy of recognizing NOAs when received. There was one NOA that was not recognized during the year ended June 30, 2022 due an oversight by a former employee.
Condition: Account reconciliations of balance sheet accounts were not performed on a timely basis throughout the year. Criteria: Account reconciliations of balance sheet accounts should occur monthly to facilitate accurate financial reporting and aid in the identification of potential errors throughout the year. Cause: The lack of account reconciliations and/or evaluations of balance sheet accounts was due in large part to turnover within the Center's Finance Department during the current fiscal year. Effect: The lack of balance sheet account reconciliations resulted in several audit adjustments to true up year-end balances. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should reconcile all balance sheet accounts at the end of each month and evaluate the need for revisions in estimates such as the receivable allowances. This process should include a monthly update to the fixed asset and depreciation records. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. The Center will reconcile balance sheet accounts monthly in partnership with the new third-party bookkeeping company.
Condition: Prior to adjustments proposed and recorded in conjunction with the audit, Federal HRSA grant income was overstated during the year. Criteria: Federal HRSA grant income should be recognized at the time that grants are awarded to the Center. Cause: When HRSA funding was received during the year, the Center was properly relieving the receivable for Federal HRSA awards, but was also recording a second entry to recognize grant income and reduce net assets. Effect: Grant income is initially recorded at the time a Notice of Award is received; making an additional entry to record grant income when funding is received is duplicative and serves to overstate grant income. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: Management should continue to recognize Federal HRSA grant income upon the Notice of Award and should continue to relieve the receivable in conjunction with funding; management should discontinue the second adjustment in conjunction with funding which serves to overstate grant income and decrease net assets. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. Starting in FY23 we are going to continue to recognize Federal HRSA grant income upon the Notice of Award and relieve the receivable each time a draw is taken. We will discontinue the adjustment which serves to overstate grant income and decrease net assets.
Condition: The Center reconciled cash at year-end, but did not adjust the general ledger; accordingly, prior to an adjustment proposed and recorded in conjunction with the audit, the cash balance per the general ledger did not agree to the cash balance per the bank reconciliation. Criteria: The cash balance per the general ledger should be reconciled to the cash balance per the bank reconciliation on a monthly basis; differences should be addressed in a timely manner. Cause: The Center's payroll provider drew cash from the Center's bank account to fund the final payroll of the year ended June 30, 2022 prior to June 30, 2022; the transaction was recorded in the general ledger after year-end. Additionally, the Center had not accrued for the final payroll of the year ended June 30, 2022. Effect: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center's payroll expense was understated as of and for the year ended June 30, 2022. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should timely resolve bank reconciliation differences on a monthly basis and should evaluate its payroll accrual at the end of each month. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and we are reconciling the bank statement to the general ledger and evaluating the payroll accrual at the end of each month during FY23. We have hired a new third-party bookkeeping company to provide this reconciliation and assist with the evaluation of the payroll accrual each month.
Condition: Prior to an adjustment proposed and recorded in conjunction with the audit, HRSA Notice of Award #13-01 was recorded on a cash basis, rather than being recognized upon notification of the grant. Criteria: Grant income related to unconditional grants should be recognized at the time that grants are awarded to the Center. Cause: Prior to an adjustment proposed and recorded in conjunction with the audit, the Center had not recorded grant income related to an unconditional grant that was awarded during the year ended June 30, 2022. Effect: The practice of recording unconditional grants at the time they are received in cash is inconsistent with the Center's accounting policy and can serve to understate revenue and receivables relative to grants. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should record grants in full at the time that they receive notice of the grant, rather than the time at which payment is received. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation and the Center will continue to follow policy of recognizing NOAs when received. There was one NOA that was not recognized during the year ended June 30, 2022 due an oversight by a former employee.
Condition: Account reconciliations of balance sheet accounts were not performed on a timely basis throughout the year. Criteria: Account reconciliations of balance sheet accounts should occur monthly to facilitate accurate financial reporting and aid in the identification of potential errors throughout the year. Cause: The lack of account reconciliations and/or evaluations of balance sheet accounts was due in large part to turnover within the Center's Finance Department during the current fiscal year. Effect: The lack of balance sheet account reconciliations resulted in several audit adjustments to true up year-end balances. Identification of Repeat Findings: This finding is a new finding in the current year. Recommendation: The Center should reconcile all balance sheet accounts at the end of each month and evaluate the need for revisions in estimates such as the receivable allowances. This process should include a monthly update to the fixed asset and depreciation records. Views of Responsible Officials and Planned Corrective Actions: We concur with the recommendation. The Center will reconcile balance sheet accounts monthly in partnership with the new third-party bookkeeping company.