2022-001 - Financial Statement Preparation and Reconciliation of Account Balances Criteria: Effectively designed and executed policies and procedures of financial processes should exist to ensure proper recordkeeping and reporting. Condition: Adjustments to clinical billings were not posted to the general ledger during the year under audit. In addition, the reserve for doubtful accounts was not evaluated and the prior year reserve was liquidated, creating revenue. Further, grant and contract receivables, deferred revenue and associated revenue were not reconciled. Cause: Reconciliation of certain account balances did not take place consistently throughout the year or at year end. Effect: The lack of reconciliations led to material audit adjustments necessary to correct significant errors identified in the following areas: accounts receivable, deferred revenue, bad debt expense and associated revenue accounts. Further, financials were used for decision-making purposes during the year that contained material misstatements. Recommendation: We recommend management ensure reconciliations are performed on a timely basis throughout the year as part of the monthly financial reporting processes before financial records are presented to executive management and the board of directors for decision-making purposes. Views of Responsible Official and Planned Corrective Actions: Management has established a policy for timely and methodical management of clinical billings and reconciliation with the general ledger. In addition, management has established a policy and procedure to reflect receivables in the billing management system at an expected realizable rate to also be reflected in the general ledger at the time of billing. Further, transition in the fiscal manager position is taking place and management will ensure that receivables and associated balances are reconciled and analyzed timely and that revenue is recognized in accordance with Generally Accepted Accounting Principles.
2022-002 - Adequate Financial Analysis and Oversight of Financial Records Criteria: Effectively designed and executed policies and procedures of financial processes should exist to ensure adequate financial analysis and oversight are present to properly record and report financial information. Condition: There was a lack of analysis of financial information and oversight over financial records/reporting throughout the year on an overall and individual program/grant level. Cause: Adequate supervision and timely oversight of grant/contract and program financials did not take place creating certain programs to generate losses for cost that could have been vouchered. Further, there was not adequate communication between finance personnel and programmatic personnel throughout the year. Effect: The lack of supervision and oversight resulted in the need for significant adjustments amongst programs to properly present financial results at the program level. Further, executive management and program management did not have accurate program financial data throughout the year. Recommendation: We recommend the management enhance regular reconciliation and reporting at the program and/or grant/contract level. Further, executive management should work with programmatic personnel to regularly assess the detailed financial results of each program, performing evaluations of the collectability of accounts receivable, budget modifications, and other financial assessments in tandem with programmatic reporting. Views of Responsible Official and Planned Corrective Actions: Executive management will expand regular review of timely monthly financials and will review such details with the finance committee of the board. Executive management will work with the program management team to understand budgeting, review budgets with their program managers on a monthly basis and empower them to complete budget modification timely. Executive management will ensure there is clear supervision and oversight duties and that these duties are adequately segregated.
2022-003 Internal Control Design and Oversight Condition: Two of eight selected payroll charges selected for testing lacked one required signature, either of the employee or a supervisor, on the Personnel Activity Report. In one additional instance, the signatures did not include the required date as evidence of timeliness of preparation or approval. Criteria: Effectively designed and executed controls should be present to ensure proper recordkeeping and reporting. Cause: In certain circumstances, documented processes were not followed. Effect: Payroll and benefits were charged that were not properly reviewed/approved or the approval may not have taken place timely. Recommendation: The auditor recommends that controls be executed to ensure adequate and timely oversight take place. View of Responsible Official: Management agrees and has implemented processes to review Personnel Activity Reports on a timely basis, this process will be reinforced and personnel reminded of the importance of following current procedures.
2022-001 - Financial Statement Preparation and Reconciliation of Account Balances Criteria: Effectively designed and executed policies and procedures of financial processes should exist to ensure proper recordkeeping and reporting. Condition: Adjustments to clinical billings were not posted to the general ledger during the year under audit. In addition, the reserve for doubtful accounts was not evaluated and the prior year reserve was liquidated, creating revenue. Further, grant and contract receivables, deferred revenue and associated revenue were not reconciled. Cause: Reconciliation of certain account balances did not take place consistently throughout the year or at year end. Effect: The lack of reconciliations led to material audit adjustments necessary to correct significant errors identified in the following areas: accounts receivable, deferred revenue, bad debt expense and associated revenue accounts. Further, financials were used for decision-making purposes during the year that contained material misstatements. Recommendation: We recommend management ensure reconciliations are performed on a timely basis throughout the year as part of the monthly financial reporting processes before financial records are presented to executive management and the board of directors for decision-making purposes. Views of Responsible Official and Planned Corrective Actions: Management has established a policy for timely and methodical management of clinical billings and reconciliation with the general ledger. In addition, management has established a policy and procedure to reflect receivables in the billing management system at an expected realizable rate to also be reflected in the general ledger at the time of billing. Further, transition in the fiscal manager position is taking place and management will ensure that receivables and associated balances are reconciled and analyzed timely and that revenue is recognized in accordance with Generally Accepted Accounting Principles.
2022-002 - Adequate Financial Analysis and Oversight of Financial Records Criteria: Effectively designed and executed policies and procedures of financial processes should exist to ensure adequate financial analysis and oversight are present to properly record and report financial information. Condition: There was a lack of analysis of financial information and oversight over financial records/reporting throughout the year on an overall and individual program/grant level. Cause: Adequate supervision and timely oversight of grant/contract and program financials did not take place creating certain programs to generate losses for cost that could have been vouchered. Further, there was not adequate communication between finance personnel and programmatic personnel throughout the year. Effect: The lack of supervision and oversight resulted in the need for significant adjustments amongst programs to properly present financial results at the program level. Further, executive management and program management did not have accurate program financial data throughout the year. Recommendation: We recommend the management enhance regular reconciliation and reporting at the program and/or grant/contract level. Further, executive management should work with programmatic personnel to regularly assess the detailed financial results of each program, performing evaluations of the collectability of accounts receivable, budget modifications, and other financial assessments in tandem with programmatic reporting. Views of Responsible Official and Planned Corrective Actions: Executive management will expand regular review of timely monthly financials and will review such details with the finance committee of the board. Executive management will work with the program management team to understand budgeting, review budgets with their program managers on a monthly basis and empower them to complete budget modification timely. Executive management will ensure there is clear supervision and oversight duties and that these duties are adequately segregated.
2022-003 Internal Control Design and Oversight Condition: Two of eight selected payroll charges selected for testing lacked one required signature, either of the employee or a supervisor, on the Personnel Activity Report. In one additional instance, the signatures did not include the required date as evidence of timeliness of preparation or approval. Criteria: Effectively designed and executed controls should be present to ensure proper recordkeeping and reporting. Cause: In certain circumstances, documented processes were not followed. Effect: Payroll and benefits were charged that were not properly reviewed/approved or the approval may not have taken place timely. Recommendation: The auditor recommends that controls be executed to ensure adequate and timely oversight take place. View of Responsible Official: Management agrees and has implemented processes to review Personnel Activity Reports on a timely basis, this process will be reinforced and personnel reminded of the importance of following current procedures.
2022-001 - Financial Statement Preparation and Reconciliation of Account Balances Criteria: Effectively designed and executed policies and procedures of financial processes should exist to ensure proper recordkeeping and reporting. Condition: Adjustments to clinical billings were not posted to the general ledger during the year under audit. In addition, the reserve for doubtful accounts was not evaluated and the prior year reserve was liquidated, creating revenue. Further, grant and contract receivables, deferred revenue and associated revenue were not reconciled. Cause: Reconciliation of certain account balances did not take place consistently throughout the year or at year end. Effect: The lack of reconciliations led to material audit adjustments necessary to correct significant errors identified in the following areas: accounts receivable, deferred revenue, bad debt expense and associated revenue accounts. Further, financials were used for decision-making purposes during the year that contained material misstatements. Recommendation: We recommend management ensure reconciliations are performed on a timely basis throughout the year as part of the monthly financial reporting processes before financial records are presented to executive management and the board of directors for decision-making purposes. Views of Responsible Official and Planned Corrective Actions: Management has established a policy for timely and methodical management of clinical billings and reconciliation with the general ledger. In addition, management has established a policy and procedure to reflect receivables in the billing management system at an expected realizable rate to also be reflected in the general ledger at the time of billing. Further, transition in the fiscal manager position is taking place and management will ensure that receivables and associated balances are reconciled and analyzed timely and that revenue is recognized in accordance with Generally Accepted Accounting Principles.
2022-002 - Adequate Financial Analysis and Oversight of Financial Records Criteria: Effectively designed and executed policies and procedures of financial processes should exist to ensure adequate financial analysis and oversight are present to properly record and report financial information. Condition: There was a lack of analysis of financial information and oversight over financial records/reporting throughout the year on an overall and individual program/grant level. Cause: Adequate supervision and timely oversight of grant/contract and program financials did not take place creating certain programs to generate losses for cost that could have been vouchered. Further, there was not adequate communication between finance personnel and programmatic personnel throughout the year. Effect: The lack of supervision and oversight resulted in the need for significant adjustments amongst programs to properly present financial results at the program level. Further, executive management and program management did not have accurate program financial data throughout the year. Recommendation: We recommend the management enhance regular reconciliation and reporting at the program and/or grant/contract level. Further, executive management should work with programmatic personnel to regularly assess the detailed financial results of each program, performing evaluations of the collectability of accounts receivable, budget modifications, and other financial assessments in tandem with programmatic reporting. Views of Responsible Official and Planned Corrective Actions: Executive management will expand regular review of timely monthly financials and will review such details with the finance committee of the board. Executive management will work with the program management team to understand budgeting, review budgets with their program managers on a monthly basis and empower them to complete budget modification timely. Executive management will ensure there is clear supervision and oversight duties and that these duties are adequately segregated.
2022-003 Internal Control Design and Oversight Condition: Two of eight selected payroll charges selected for testing lacked one required signature, either of the employee or a supervisor, on the Personnel Activity Report. In one additional instance, the signatures did not include the required date as evidence of timeliness of preparation or approval. Criteria: Effectively designed and executed controls should be present to ensure proper recordkeeping and reporting. Cause: In certain circumstances, documented processes were not followed. Effect: Payroll and benefits were charged that were not properly reviewed/approved or the approval may not have taken place timely. Recommendation: The auditor recommends that controls be executed to ensure adequate and timely oversight take place. View of Responsible Official: Management agrees and has implemented processes to review Personnel Activity Reports on a timely basis, this process will be reinforced and personnel reminded of the importance of following current procedures.
2022-001 - Financial Statement Preparation and Reconciliation of Account Balances Criteria: Effectively designed and executed policies and procedures of financial processes should exist to ensure proper recordkeeping and reporting. Condition: Adjustments to clinical billings were not posted to the general ledger during the year under audit. In addition, the reserve for doubtful accounts was not evaluated and the prior year reserve was liquidated, creating revenue. Further, grant and contract receivables, deferred revenue and associated revenue were not reconciled. Cause: Reconciliation of certain account balances did not take place consistently throughout the year or at year end. Effect: The lack of reconciliations led to material audit adjustments necessary to correct significant errors identified in the following areas: accounts receivable, deferred revenue, bad debt expense and associated revenue accounts. Further, financials were used for decision-making purposes during the year that contained material misstatements. Recommendation: We recommend management ensure reconciliations are performed on a timely basis throughout the year as part of the monthly financial reporting processes before financial records are presented to executive management and the board of directors for decision-making purposes. Views of Responsible Official and Planned Corrective Actions: Management has established a policy for timely and methodical management of clinical billings and reconciliation with the general ledger. In addition, management has established a policy and procedure to reflect receivables in the billing management system at an expected realizable rate to also be reflected in the general ledger at the time of billing. Further, transition in the fiscal manager position is taking place and management will ensure that receivables and associated balances are reconciled and analyzed timely and that revenue is recognized in accordance with Generally Accepted Accounting Principles.
2022-002 - Adequate Financial Analysis and Oversight of Financial Records Criteria: Effectively designed and executed policies and procedures of financial processes should exist to ensure adequate financial analysis and oversight are present to properly record and report financial information. Condition: There was a lack of analysis of financial information and oversight over financial records/reporting throughout the year on an overall and individual program/grant level. Cause: Adequate supervision and timely oversight of grant/contract and program financials did not take place creating certain programs to generate losses for cost that could have been vouchered. Further, there was not adequate communication between finance personnel and programmatic personnel throughout the year. Effect: The lack of supervision and oversight resulted in the need for significant adjustments amongst programs to properly present financial results at the program level. Further, executive management and program management did not have accurate program financial data throughout the year. Recommendation: We recommend the management enhance regular reconciliation and reporting at the program and/or grant/contract level. Further, executive management should work with programmatic personnel to regularly assess the detailed financial results of each program, performing evaluations of the collectability of accounts receivable, budget modifications, and other financial assessments in tandem with programmatic reporting. Views of Responsible Official and Planned Corrective Actions: Executive management will expand regular review of timely monthly financials and will review such details with the finance committee of the board. Executive management will work with the program management team to understand budgeting, review budgets with their program managers on a monthly basis and empower them to complete budget modification timely. Executive management will ensure there is clear supervision and oversight duties and that these duties are adequately segregated.
2022-003 Internal Control Design and Oversight Condition: Two of eight selected payroll charges selected for testing lacked one required signature, either of the employee or a supervisor, on the Personnel Activity Report. In one additional instance, the signatures did not include the required date as evidence of timeliness of preparation or approval. Criteria: Effectively designed and executed controls should be present to ensure proper recordkeeping and reporting. Cause: In certain circumstances, documented processes were not followed. Effect: Payroll and benefits were charged that were not properly reviewed/approved or the approval may not have taken place timely. Recommendation: The auditor recommends that controls be executed to ensure adequate and timely oversight take place. View of Responsible Official: Management agrees and has implemented processes to review Personnel Activity Reports on a timely basis, this process will be reinforced and personnel reminded of the importance of following current procedures.
2022-001 - Financial Statement Preparation and Reconciliation of Account Balances Criteria: Effectively designed and executed policies and procedures of financial processes should exist to ensure proper recordkeeping and reporting. Condition: Adjustments to clinical billings were not posted to the general ledger during the year under audit. In addition, the reserve for doubtful accounts was not evaluated and the prior year reserve was liquidated, creating revenue. Further, grant and contract receivables, deferred revenue and associated revenue were not reconciled. Cause: Reconciliation of certain account balances did not take place consistently throughout the year or at year end. Effect: The lack of reconciliations led to material audit adjustments necessary to correct significant errors identified in the following areas: accounts receivable, deferred revenue, bad debt expense and associated revenue accounts. Further, financials were used for decision-making purposes during the year that contained material misstatements. Recommendation: We recommend management ensure reconciliations are performed on a timely basis throughout the year as part of the monthly financial reporting processes before financial records are presented to executive management and the board of directors for decision-making purposes. Views of Responsible Official and Planned Corrective Actions: Management has established a policy for timely and methodical management of clinical billings and reconciliation with the general ledger. In addition, management has established a policy and procedure to reflect receivables in the billing management system at an expected realizable rate to also be reflected in the general ledger at the time of billing. Further, transition in the fiscal manager position is taking place and management will ensure that receivables and associated balances are reconciled and analyzed timely and that revenue is recognized in accordance with Generally Accepted Accounting Principles.
2022-002 - Adequate Financial Analysis and Oversight of Financial Records Criteria: Effectively designed and executed policies and procedures of financial processes should exist to ensure adequate financial analysis and oversight are present to properly record and report financial information. Condition: There was a lack of analysis of financial information and oversight over financial records/reporting throughout the year on an overall and individual program/grant level. Cause: Adequate supervision and timely oversight of grant/contract and program financials did not take place creating certain programs to generate losses for cost that could have been vouchered. Further, there was not adequate communication between finance personnel and programmatic personnel throughout the year. Effect: The lack of supervision and oversight resulted in the need for significant adjustments amongst programs to properly present financial results at the program level. Further, executive management and program management did not have accurate program financial data throughout the year. Recommendation: We recommend the management enhance regular reconciliation and reporting at the program and/or grant/contract level. Further, executive management should work with programmatic personnel to regularly assess the detailed financial results of each program, performing evaluations of the collectability of accounts receivable, budget modifications, and other financial assessments in tandem with programmatic reporting. Views of Responsible Official and Planned Corrective Actions: Executive management will expand regular review of timely monthly financials and will review such details with the finance committee of the board. Executive management will work with the program management team to understand budgeting, review budgets with their program managers on a monthly basis and empower them to complete budget modification timely. Executive management will ensure there is clear supervision and oversight duties and that these duties are adequately segregated.
2022-003 Internal Control Design and Oversight Condition: Two of eight selected payroll charges selected for testing lacked one required signature, either of the employee or a supervisor, on the Personnel Activity Report. In one additional instance, the signatures did not include the required date as evidence of timeliness of preparation or approval. Criteria: Effectively designed and executed controls should be present to ensure proper recordkeeping and reporting. Cause: In certain circumstances, documented processes were not followed. Effect: Payroll and benefits were charged that were not properly reviewed/approved or the approval may not have taken place timely. Recommendation: The auditor recommends that controls be executed to ensure adequate and timely oversight take place. View of Responsible Official: Management agrees and has implemented processes to review Personnel Activity Reports on a timely basis, this process will be reinforced and personnel reminded of the importance of following current procedures.
2022-001 - Financial Statement Preparation and Reconciliation of Account Balances Criteria: Effectively designed and executed policies and procedures of financial processes should exist to ensure proper recordkeeping and reporting. Condition: Adjustments to clinical billings were not posted to the general ledger during the year under audit. In addition, the reserve for doubtful accounts was not evaluated and the prior year reserve was liquidated, creating revenue. Further, grant and contract receivables, deferred revenue and associated revenue were not reconciled. Cause: Reconciliation of certain account balances did not take place consistently throughout the year or at year end. Effect: The lack of reconciliations led to material audit adjustments necessary to correct significant errors identified in the following areas: accounts receivable, deferred revenue, bad debt expense and associated revenue accounts. Further, financials were used for decision-making purposes during the year that contained material misstatements. Recommendation: We recommend management ensure reconciliations are performed on a timely basis throughout the year as part of the monthly financial reporting processes before financial records are presented to executive management and the board of directors for decision-making purposes. Views of Responsible Official and Planned Corrective Actions: Management has established a policy for timely and methodical management of clinical billings and reconciliation with the general ledger. In addition, management has established a policy and procedure to reflect receivables in the billing management system at an expected realizable rate to also be reflected in the general ledger at the time of billing. Further, transition in the fiscal manager position is taking place and management will ensure that receivables and associated balances are reconciled and analyzed timely and that revenue is recognized in accordance with Generally Accepted Accounting Principles.
2022-002 - Adequate Financial Analysis and Oversight of Financial Records Criteria: Effectively designed and executed policies and procedures of financial processes should exist to ensure adequate financial analysis and oversight are present to properly record and report financial information. Condition: There was a lack of analysis of financial information and oversight over financial records/reporting throughout the year on an overall and individual program/grant level. Cause: Adequate supervision and timely oversight of grant/contract and program financials did not take place creating certain programs to generate losses for cost that could have been vouchered. Further, there was not adequate communication between finance personnel and programmatic personnel throughout the year. Effect: The lack of supervision and oversight resulted in the need for significant adjustments amongst programs to properly present financial results at the program level. Further, executive management and program management did not have accurate program financial data throughout the year. Recommendation: We recommend the management enhance regular reconciliation and reporting at the program and/or grant/contract level. Further, executive management should work with programmatic personnel to regularly assess the detailed financial results of each program, performing evaluations of the collectability of accounts receivable, budget modifications, and other financial assessments in tandem with programmatic reporting. Views of Responsible Official and Planned Corrective Actions: Executive management will expand regular review of timely monthly financials and will review such details with the finance committee of the board. Executive management will work with the program management team to understand budgeting, review budgets with their program managers on a monthly basis and empower them to complete budget modification timely. Executive management will ensure there is clear supervision and oversight duties and that these duties are adequately segregated.
2022-003 Internal Control Design and Oversight Condition: Two of eight selected payroll charges selected for testing lacked one required signature, either of the employee or a supervisor, on the Personnel Activity Report. In one additional instance, the signatures did not include the required date as evidence of timeliness of preparation or approval. Criteria: Effectively designed and executed controls should be present to ensure proper recordkeeping and reporting. Cause: In certain circumstances, documented processes were not followed. Effect: Payroll and benefits were charged that were not properly reviewed/approved or the approval may not have taken place timely. Recommendation: The auditor recommends that controls be executed to ensure adequate and timely oversight take place. View of Responsible Official: Management agrees and has implemented processes to review Personnel Activity Reports on a timely basis, this process will be reinforced and personnel reminded of the importance of following current procedures.
2022-001 - Financial Statement Preparation and Reconciliation of Account Balances Criteria: Effectively designed and executed policies and procedures of financial processes should exist to ensure proper recordkeeping and reporting. Condition: Adjustments to clinical billings were not posted to the general ledger during the year under audit. In addition, the reserve for doubtful accounts was not evaluated and the prior year reserve was liquidated, creating revenue. Further, grant and contract receivables, deferred revenue and associated revenue were not reconciled. Cause: Reconciliation of certain account balances did not take place consistently throughout the year or at year end. Effect: The lack of reconciliations led to material audit adjustments necessary to correct significant errors identified in the following areas: accounts receivable, deferred revenue, bad debt expense and associated revenue accounts. Further, financials were used for decision-making purposes during the year that contained material misstatements. Recommendation: We recommend management ensure reconciliations are performed on a timely basis throughout the year as part of the monthly financial reporting processes before financial records are presented to executive management and the board of directors for decision-making purposes. Views of Responsible Official and Planned Corrective Actions: Management has established a policy for timely and methodical management of clinical billings and reconciliation with the general ledger. In addition, management has established a policy and procedure to reflect receivables in the billing management system at an expected realizable rate to also be reflected in the general ledger at the time of billing. Further, transition in the fiscal manager position is taking place and management will ensure that receivables and associated balances are reconciled and analyzed timely and that revenue is recognized in accordance with Generally Accepted Accounting Principles.
2022-002 - Adequate Financial Analysis and Oversight of Financial Records Criteria: Effectively designed and executed policies and procedures of financial processes should exist to ensure adequate financial analysis and oversight are present to properly record and report financial information. Condition: There was a lack of analysis of financial information and oversight over financial records/reporting throughout the year on an overall and individual program/grant level. Cause: Adequate supervision and timely oversight of grant/contract and program financials did not take place creating certain programs to generate losses for cost that could have been vouchered. Further, there was not adequate communication between finance personnel and programmatic personnel throughout the year. Effect: The lack of supervision and oversight resulted in the need for significant adjustments amongst programs to properly present financial results at the program level. Further, executive management and program management did not have accurate program financial data throughout the year. Recommendation: We recommend the management enhance regular reconciliation and reporting at the program and/or grant/contract level. Further, executive management should work with programmatic personnel to regularly assess the detailed financial results of each program, performing evaluations of the collectability of accounts receivable, budget modifications, and other financial assessments in tandem with programmatic reporting. Views of Responsible Official and Planned Corrective Actions: Executive management will expand regular review of timely monthly financials and will review such details with the finance committee of the board. Executive management will work with the program management team to understand budgeting, review budgets with their program managers on a monthly basis and empower them to complete budget modification timely. Executive management will ensure there is clear supervision and oversight duties and that these duties are adequately segregated.
2022-003 Internal Control Design and Oversight Condition: Two of eight selected payroll charges selected for testing lacked one required signature, either of the employee or a supervisor, on the Personnel Activity Report. In one additional instance, the signatures did not include the required date as evidence of timeliness of preparation or approval. Criteria: Effectively designed and executed controls should be present to ensure proper recordkeeping and reporting. Cause: In certain circumstances, documented processes were not followed. Effect: Payroll and benefits were charged that were not properly reviewed/approved or the approval may not have taken place timely. Recommendation: The auditor recommends that controls be executed to ensure adequate and timely oversight take place. View of Responsible Official: Management agrees and has implemented processes to review Personnel Activity Reports on a timely basis, this process will be reinforced and personnel reminded of the importance of following current procedures.
2022-001 - Financial Statement Preparation and Reconciliation of Account Balances Criteria: Effectively designed and executed policies and procedures of financial processes should exist to ensure proper recordkeeping and reporting. Condition: Adjustments to clinical billings were not posted to the general ledger during the year under audit. In addition, the reserve for doubtful accounts was not evaluated and the prior year reserve was liquidated, creating revenue. Further, grant and contract receivables, deferred revenue and associated revenue were not reconciled. Cause: Reconciliation of certain account balances did not take place consistently throughout the year or at year end. Effect: The lack of reconciliations led to material audit adjustments necessary to correct significant errors identified in the following areas: accounts receivable, deferred revenue, bad debt expense and associated revenue accounts. Further, financials were used for decision-making purposes during the year that contained material misstatements. Recommendation: We recommend management ensure reconciliations are performed on a timely basis throughout the year as part of the monthly financial reporting processes before financial records are presented to executive management and the board of directors for decision-making purposes. Views of Responsible Official and Planned Corrective Actions: Management has established a policy for timely and methodical management of clinical billings and reconciliation with the general ledger. In addition, management has established a policy and procedure to reflect receivables in the billing management system at an expected realizable rate to also be reflected in the general ledger at the time of billing. Further, transition in the fiscal manager position is taking place and management will ensure that receivables and associated balances are reconciled and analyzed timely and that revenue is recognized in accordance with Generally Accepted Accounting Principles.
2022-002 - Adequate Financial Analysis and Oversight of Financial Records Criteria: Effectively designed and executed policies and procedures of financial processes should exist to ensure adequate financial analysis and oversight are present to properly record and report financial information. Condition: There was a lack of analysis of financial information and oversight over financial records/reporting throughout the year on an overall and individual program/grant level. Cause: Adequate supervision and timely oversight of grant/contract and program financials did not take place creating certain programs to generate losses for cost that could have been vouchered. Further, there was not adequate communication between finance personnel and programmatic personnel throughout the year. Effect: The lack of supervision and oversight resulted in the need for significant adjustments amongst programs to properly present financial results at the program level. Further, executive management and program management did not have accurate program financial data throughout the year. Recommendation: We recommend the management enhance regular reconciliation and reporting at the program and/or grant/contract level. Further, executive management should work with programmatic personnel to regularly assess the detailed financial results of each program, performing evaluations of the collectability of accounts receivable, budget modifications, and other financial assessments in tandem with programmatic reporting. Views of Responsible Official and Planned Corrective Actions: Executive management will expand regular review of timely monthly financials and will review such details with the finance committee of the board. Executive management will work with the program management team to understand budgeting, review budgets with their program managers on a monthly basis and empower them to complete budget modification timely. Executive management will ensure there is clear supervision and oversight duties and that these duties are adequately segregated.
2022-003 Internal Control Design and Oversight Condition: Two of eight selected payroll charges selected for testing lacked one required signature, either of the employee or a supervisor, on the Personnel Activity Report. In one additional instance, the signatures did not include the required date as evidence of timeliness of preparation or approval. Criteria: Effectively designed and executed controls should be present to ensure proper recordkeeping and reporting. Cause: In certain circumstances, documented processes were not followed. Effect: Payroll and benefits were charged that were not properly reviewed/approved or the approval may not have taken place timely. Recommendation: The auditor recommends that controls be executed to ensure adequate and timely oversight take place. View of Responsible Official: Management agrees and has implemented processes to review Personnel Activity Reports on a timely basis, this process will be reinforced and personnel reminded of the importance of following current procedures.