Audit 302258

FY End
2023-12-31
Total Expended
$7.01M
Findings
12
Programs
5
Year: 2023 Accepted: 2024-04-02

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
392103 2023-001 - - N
392104 2023-001 - - N
392105 2023-002 Material Weakness - L
392106 2023-002 Material Weakness - L
392107 2023-002 Material Weakness - L
392108 2023-002 Material Weakness - L
968545 2023-001 - - N
968546 2023-001 - - N
968547 2023-002 Material Weakness - L
968548 2023-002 Material Weakness - L
968549 2023-002 Material Weakness - L
968550 2023-002 Material Weakness - L

Contacts

Name Title Type
Z2K5LJNPBAH8 Donna Williams Auditee
2088725610 Mary Jalbert Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported in the schedule of expenditures of federal awards (Schedule) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: HealthReach Community Health Centers (the Organization) has elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Schedule includes the federal grant activity of the Organization. The information in this Schedule is presented in accordance with the requirements of the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.

Finding Details

Finding Number: 2023-001 Finding Type: Compliance - Special Tests and Provisions Information on the Federal Program: Program Name: Health Center Program Cluster (AL numbers 93.224 and 93.527) Grant Award: 6 H80CS00797-21-01 from January 1, 2023 through December 31, 2023 Agency: U.S. Department of Health and Human Services, HRSA Pass-Through Entity: N/A Criteria: In accordance with Section 330(k)(3)(G) of the Public Health Services Act (42 U.S. Code § 254b), as an FQHC, the Organization must have a sliding fee discount program in which the Organization’s fee schedule is discounted based on a patient’s ability to pay. Condition: The Organization has not applied sliding fee discounts to patient charges consistent with its sliding fee discount program. Through testing a statistically valid sample of transactions for the appropriate application of the Organization's sliding fee discount program to 25 individual patient balances, we noted the sliding fee discount applied was not consistent with the Organization's sliding fee discount policy for one patient. Based on income and family size, the patient qualified for a patient responsibility of $90 but received a patient responsibility of $72. Cause: Approval of the sliding fee discount applications involves manual processes and errors can occur. To help mitigate errors, the Organization has implemented semi-annual monitoring procedures which include the sampling of discounts provided to ensure the discounts were applied to patient accounts appropriately. The volume of discounts provided to patients annually does not allow for 100% review of all patient discounts. Due to the inherent nature of sampling, all errors may not be identified and corrected. Effect: It is possible the Organization may not apply sliding fee discounts to patient charges consistent with its sliding fee discount program. Questioned Costs: None Repeat Finding: No Recommendation: We recommend management consider increasing the number of transactions reviewed as part of the Organization's internal monitoring procedures and the frequency of monitoring procedures. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding and will review internal monitoring procedures for opportunities for improvement to increase compliance with the program requirements.
Finding Number: 2023-001 Finding Type: Compliance - Special Tests and Provisions Information on the Federal Program: Program Name: Health Center Program Cluster (AL numbers 93.224 and 93.527) Grant Award: 6 H80CS00797-21-01 from January 1, 2023 through December 31, 2023 Agency: U.S. Department of Health and Human Services, HRSA Pass-Through Entity: N/A Criteria: In accordance with Section 330(k)(3)(G) of the Public Health Services Act (42 U.S. Code § 254b), as an FQHC, the Organization must have a sliding fee discount program in which the Organization’s fee schedule is discounted based on a patient’s ability to pay. Condition: The Organization has not applied sliding fee discounts to patient charges consistent with its sliding fee discount program. Through testing a statistically valid sample of transactions for the appropriate application of the Organization's sliding fee discount program to 25 individual patient balances, we noted the sliding fee discount applied was not consistent with the Organization's sliding fee discount policy for one patient. Based on income and family size, the patient qualified for a patient responsibility of $90 but received a patient responsibility of $72. Cause: Approval of the sliding fee discount applications involves manual processes and errors can occur. To help mitigate errors, the Organization has implemented semi-annual monitoring procedures which include the sampling of discounts provided to ensure the discounts were applied to patient accounts appropriately. The volume of discounts provided to patients annually does not allow for 100% review of all patient discounts. Due to the inherent nature of sampling, all errors may not be identified and corrected. Effect: It is possible the Organization may not apply sliding fee discounts to patient charges consistent with its sliding fee discount program. Questioned Costs: None Repeat Finding: No Recommendation: We recommend management consider increasing the number of transactions reviewed as part of the Organization's internal monitoring procedures and the frequency of monitoring procedures. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding and will review internal monitoring procedures for opportunities for improvement to increase compliance with the program requirements.
Finding Number: 2023-002 Finding Type(s): Material weakness in internal control over compliance Non compliance related to the reporting compliance requirement Information on the Federal Program: Program Name: Health Center Program Cluster (AL 93.224) Federal Awards Project Title: Health Center Program Service Expansion - School Based Service Sites (SBSS) (H2E) Award Period: May 1, 2022 - April 30, 2023 Award Number: 22H2ECS45509 Agency: U.S. Department of Health and Human Services, HRSA Program Name: Health Center Program Cluster (AL 93.224 and 93.527) Federal Awards Project Title: American Rescue Plan Act Funding for Health Centers (H8F) Award Period: April 1, 2021 - March 31, 2024 Award Number: 21H8FCS40415C6 Agency: U.S. Department of Health and Human Services, HRSA Criteria: Management is responsible for ensuring required reports for federal awards include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Condition: In a nonstatistical sample, two of three annual Federal Financial Reports (FFR) tested included certain amounts which were not supported by underlying accounting records. The reports were to be completed on the accrual basis of accounting; however, based on procedures performed, it was determined the reports were completed on the cash basis of accounting. This resulted in the FFRs under-reporting grant expenditures for H2E and H8F by $13,183 and $320,691, respectively, and over-reporting unobligated (unused) funds for each grant by $13,183 and $320,691, respectively. Cause: The platform for filing the annual FFRs changed a few years ago from the Electronic Handbook to the Payment Management System (PMS). PMS is the platform in which the Organization requests the draw down of grant funds and completes quarterly Federal Cash Transaction reports. With the switch to PMS, certain amounts are now prepopulated on the FFR from the Organization's cash activity for the budget period. These amounts are required to be updated when the annual FFR is completed. Management was not aware the prepopulated amounts were to be updated. Effect: Inaccurate reports could result in the loss of grant dollars or the repayment of previously received grant dollars. Questioned Costs: None Repeat Finding: No Recommendation: We recommend management develop a procedure for the annual FFR filing, outlining each step in the process to help ensure the reports are completed accurately and are fully supported by the Organization's accounting records. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding. A process will be established related to the completion of federal reports.
Finding Number: 2023-002 Finding Type(s): Material weakness in internal control over compliance Non compliance related to the reporting compliance requirement Information on the Federal Program: Program Name: Health Center Program Cluster (AL 93.224) Federal Awards Project Title: Health Center Program Service Expansion - School Based Service Sites (SBSS) (H2E) Award Period: May 1, 2022 - April 30, 2023 Award Number: 22H2ECS45509 Agency: U.S. Department of Health and Human Services, HRSA Program Name: Health Center Program Cluster (AL 93.224 and 93.527) Federal Awards Project Title: American Rescue Plan Act Funding for Health Centers (H8F) Award Period: April 1, 2021 - March 31, 2024 Award Number: 21H8FCS40415C6 Agency: U.S. Department of Health and Human Services, HRSA Criteria: Management is responsible for ensuring required reports for federal awards include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Condition: In a nonstatistical sample, two of three annual Federal Financial Reports (FFR) tested included certain amounts which were not supported by underlying accounting records. The reports were to be completed on the accrual basis of accounting; however, based on procedures performed, it was determined the reports were completed on the cash basis of accounting. This resulted in the FFRs under-reporting grant expenditures for H2E and H8F by $13,183 and $320,691, respectively, and over-reporting unobligated (unused) funds for each grant by $13,183 and $320,691, respectively. Cause: The platform for filing the annual FFRs changed a few years ago from the Electronic Handbook to the Payment Management System (PMS). PMS is the platform in which the Organization requests the draw down of grant funds and completes quarterly Federal Cash Transaction reports. With the switch to PMS, certain amounts are now prepopulated on the FFR from the Organization's cash activity for the budget period. These amounts are required to be updated when the annual FFR is completed. Management was not aware the prepopulated amounts were to be updated. Effect: Inaccurate reports could result in the loss of grant dollars or the repayment of previously received grant dollars. Questioned Costs: None Repeat Finding: No Recommendation: We recommend management develop a procedure for the annual FFR filing, outlining each step in the process to help ensure the reports are completed accurately and are fully supported by the Organization's accounting records. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding. A process will be established related to the completion of federal reports.
Finding Number: 2023-002 Finding Type(s): Material weakness in internal control over compliance Non compliance related to the reporting compliance requirement Information on the Federal Program: Program Name: Health Center Program Cluster (AL 93.224) Federal Awards Project Title: Health Center Program Service Expansion - School Based Service Sites (SBSS) (H2E) Award Period: May 1, 2022 - April 30, 2023 Award Number: 22H2ECS45509 Agency: U.S. Department of Health and Human Services, HRSA Program Name: Health Center Program Cluster (AL 93.224 and 93.527) Federal Awards Project Title: American Rescue Plan Act Funding for Health Centers (H8F) Award Period: April 1, 2021 - March 31, 2024 Award Number: 21H8FCS40415C6 Agency: U.S. Department of Health and Human Services, HRSA Criteria: Management is responsible for ensuring required reports for federal awards include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Condition: In a nonstatistical sample, two of three annual Federal Financial Reports (FFR) tested included certain amounts which were not supported by underlying accounting records. The reports were to be completed on the accrual basis of accounting; however, based on procedures performed, it was determined the reports were completed on the cash basis of accounting. This resulted in the FFRs under-reporting grant expenditures for H2E and H8F by $13,183 and $320,691, respectively, and over-reporting unobligated (unused) funds for each grant by $13,183 and $320,691, respectively. Cause: The platform for filing the annual FFRs changed a few years ago from the Electronic Handbook to the Payment Management System (PMS). PMS is the platform in which the Organization requests the draw down of grant funds and completes quarterly Federal Cash Transaction reports. With the switch to PMS, certain amounts are now prepopulated on the FFR from the Organization's cash activity for the budget period. These amounts are required to be updated when the annual FFR is completed. Management was not aware the prepopulated amounts were to be updated. Effect: Inaccurate reports could result in the loss of grant dollars or the repayment of previously received grant dollars. Questioned Costs: None Repeat Finding: No Recommendation: We recommend management develop a procedure for the annual FFR filing, outlining each step in the process to help ensure the reports are completed accurately and are fully supported by the Organization's accounting records. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding. A process will be established related to the completion of federal reports.
Finding Number: 2023-002 Finding Type(s): Material weakness in internal control over compliance Non compliance related to the reporting compliance requirement Information on the Federal Program: Program Name: Health Center Program Cluster (AL 93.224) Federal Awards Project Title: Health Center Program Service Expansion - School Based Service Sites (SBSS) (H2E) Award Period: May 1, 2022 - April 30, 2023 Award Number: 22H2ECS45509 Agency: U.S. Department of Health and Human Services, HRSA Program Name: Health Center Program Cluster (AL 93.224 and 93.527) Federal Awards Project Title: American Rescue Plan Act Funding for Health Centers (H8F) Award Period: April 1, 2021 - March 31, 2024 Award Number: 21H8FCS40415C6 Agency: U.S. Department of Health and Human Services, HRSA Criteria: Management is responsible for ensuring required reports for federal awards include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Condition: In a nonstatistical sample, two of three annual Federal Financial Reports (FFR) tested included certain amounts which were not supported by underlying accounting records. The reports were to be completed on the accrual basis of accounting; however, based on procedures performed, it was determined the reports were completed on the cash basis of accounting. This resulted in the FFRs under-reporting grant expenditures for H2E and H8F by $13,183 and $320,691, respectively, and over-reporting unobligated (unused) funds for each grant by $13,183 and $320,691, respectively. Cause: The platform for filing the annual FFRs changed a few years ago from the Electronic Handbook to the Payment Management System (PMS). PMS is the platform in which the Organization requests the draw down of grant funds and completes quarterly Federal Cash Transaction reports. With the switch to PMS, certain amounts are now prepopulated on the FFR from the Organization's cash activity for the budget period. These amounts are required to be updated when the annual FFR is completed. Management was not aware the prepopulated amounts were to be updated. Effect: Inaccurate reports could result in the loss of grant dollars or the repayment of previously received grant dollars. Questioned Costs: None Repeat Finding: No Recommendation: We recommend management develop a procedure for the annual FFR filing, outlining each step in the process to help ensure the reports are completed accurately and are fully supported by the Organization's accounting records. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding. A process will be established related to the completion of federal reports.
Finding Number: 2023-001 Finding Type: Compliance - Special Tests and Provisions Information on the Federal Program: Program Name: Health Center Program Cluster (AL numbers 93.224 and 93.527) Grant Award: 6 H80CS00797-21-01 from January 1, 2023 through December 31, 2023 Agency: U.S. Department of Health and Human Services, HRSA Pass-Through Entity: N/A Criteria: In accordance with Section 330(k)(3)(G) of the Public Health Services Act (42 U.S. Code § 254b), as an FQHC, the Organization must have a sliding fee discount program in which the Organization’s fee schedule is discounted based on a patient’s ability to pay. Condition: The Organization has not applied sliding fee discounts to patient charges consistent with its sliding fee discount program. Through testing a statistically valid sample of transactions for the appropriate application of the Organization's sliding fee discount program to 25 individual patient balances, we noted the sliding fee discount applied was not consistent with the Organization's sliding fee discount policy for one patient. Based on income and family size, the patient qualified for a patient responsibility of $90 but received a patient responsibility of $72. Cause: Approval of the sliding fee discount applications involves manual processes and errors can occur. To help mitigate errors, the Organization has implemented semi-annual monitoring procedures which include the sampling of discounts provided to ensure the discounts were applied to patient accounts appropriately. The volume of discounts provided to patients annually does not allow for 100% review of all patient discounts. Due to the inherent nature of sampling, all errors may not be identified and corrected. Effect: It is possible the Organization may not apply sliding fee discounts to patient charges consistent with its sliding fee discount program. Questioned Costs: None Repeat Finding: No Recommendation: We recommend management consider increasing the number of transactions reviewed as part of the Organization's internal monitoring procedures and the frequency of monitoring procedures. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding and will review internal monitoring procedures for opportunities for improvement to increase compliance with the program requirements.
Finding Number: 2023-001 Finding Type: Compliance - Special Tests and Provisions Information on the Federal Program: Program Name: Health Center Program Cluster (AL numbers 93.224 and 93.527) Grant Award: 6 H80CS00797-21-01 from January 1, 2023 through December 31, 2023 Agency: U.S. Department of Health and Human Services, HRSA Pass-Through Entity: N/A Criteria: In accordance with Section 330(k)(3)(G) of the Public Health Services Act (42 U.S. Code § 254b), as an FQHC, the Organization must have a sliding fee discount program in which the Organization’s fee schedule is discounted based on a patient’s ability to pay. Condition: The Organization has not applied sliding fee discounts to patient charges consistent with its sliding fee discount program. Through testing a statistically valid sample of transactions for the appropriate application of the Organization's sliding fee discount program to 25 individual patient balances, we noted the sliding fee discount applied was not consistent with the Organization's sliding fee discount policy for one patient. Based on income and family size, the patient qualified for a patient responsibility of $90 but received a patient responsibility of $72. Cause: Approval of the sliding fee discount applications involves manual processes and errors can occur. To help mitigate errors, the Organization has implemented semi-annual monitoring procedures which include the sampling of discounts provided to ensure the discounts were applied to patient accounts appropriately. The volume of discounts provided to patients annually does not allow for 100% review of all patient discounts. Due to the inherent nature of sampling, all errors may not be identified and corrected. Effect: It is possible the Organization may not apply sliding fee discounts to patient charges consistent with its sliding fee discount program. Questioned Costs: None Repeat Finding: No Recommendation: We recommend management consider increasing the number of transactions reviewed as part of the Organization's internal monitoring procedures and the frequency of monitoring procedures. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding and will review internal monitoring procedures for opportunities for improvement to increase compliance with the program requirements.
Finding Number: 2023-002 Finding Type(s): Material weakness in internal control over compliance Non compliance related to the reporting compliance requirement Information on the Federal Program: Program Name: Health Center Program Cluster (AL 93.224) Federal Awards Project Title: Health Center Program Service Expansion - School Based Service Sites (SBSS) (H2E) Award Period: May 1, 2022 - April 30, 2023 Award Number: 22H2ECS45509 Agency: U.S. Department of Health and Human Services, HRSA Program Name: Health Center Program Cluster (AL 93.224 and 93.527) Federal Awards Project Title: American Rescue Plan Act Funding for Health Centers (H8F) Award Period: April 1, 2021 - March 31, 2024 Award Number: 21H8FCS40415C6 Agency: U.S. Department of Health and Human Services, HRSA Criteria: Management is responsible for ensuring required reports for federal awards include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Condition: In a nonstatistical sample, two of three annual Federal Financial Reports (FFR) tested included certain amounts which were not supported by underlying accounting records. The reports were to be completed on the accrual basis of accounting; however, based on procedures performed, it was determined the reports were completed on the cash basis of accounting. This resulted in the FFRs under-reporting grant expenditures for H2E and H8F by $13,183 and $320,691, respectively, and over-reporting unobligated (unused) funds for each grant by $13,183 and $320,691, respectively. Cause: The platform for filing the annual FFRs changed a few years ago from the Electronic Handbook to the Payment Management System (PMS). PMS is the platform in which the Organization requests the draw down of grant funds and completes quarterly Federal Cash Transaction reports. With the switch to PMS, certain amounts are now prepopulated on the FFR from the Organization's cash activity for the budget period. These amounts are required to be updated when the annual FFR is completed. Management was not aware the prepopulated amounts were to be updated. Effect: Inaccurate reports could result in the loss of grant dollars or the repayment of previously received grant dollars. Questioned Costs: None Repeat Finding: No Recommendation: We recommend management develop a procedure for the annual FFR filing, outlining each step in the process to help ensure the reports are completed accurately and are fully supported by the Organization's accounting records. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding. A process will be established related to the completion of federal reports.
Finding Number: 2023-002 Finding Type(s): Material weakness in internal control over compliance Non compliance related to the reporting compliance requirement Information on the Federal Program: Program Name: Health Center Program Cluster (AL 93.224) Federal Awards Project Title: Health Center Program Service Expansion - School Based Service Sites (SBSS) (H2E) Award Period: May 1, 2022 - April 30, 2023 Award Number: 22H2ECS45509 Agency: U.S. Department of Health and Human Services, HRSA Program Name: Health Center Program Cluster (AL 93.224 and 93.527) Federal Awards Project Title: American Rescue Plan Act Funding for Health Centers (H8F) Award Period: April 1, 2021 - March 31, 2024 Award Number: 21H8FCS40415C6 Agency: U.S. Department of Health and Human Services, HRSA Criteria: Management is responsible for ensuring required reports for federal awards include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Condition: In a nonstatistical sample, two of three annual Federal Financial Reports (FFR) tested included certain amounts which were not supported by underlying accounting records. The reports were to be completed on the accrual basis of accounting; however, based on procedures performed, it was determined the reports were completed on the cash basis of accounting. This resulted in the FFRs under-reporting grant expenditures for H2E and H8F by $13,183 and $320,691, respectively, and over-reporting unobligated (unused) funds for each grant by $13,183 and $320,691, respectively. Cause: The platform for filing the annual FFRs changed a few years ago from the Electronic Handbook to the Payment Management System (PMS). PMS is the platform in which the Organization requests the draw down of grant funds and completes quarterly Federal Cash Transaction reports. With the switch to PMS, certain amounts are now prepopulated on the FFR from the Organization's cash activity for the budget period. These amounts are required to be updated when the annual FFR is completed. Management was not aware the prepopulated amounts were to be updated. Effect: Inaccurate reports could result in the loss of grant dollars or the repayment of previously received grant dollars. Questioned Costs: None Repeat Finding: No Recommendation: We recommend management develop a procedure for the annual FFR filing, outlining each step in the process to help ensure the reports are completed accurately and are fully supported by the Organization's accounting records. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding. A process will be established related to the completion of federal reports.
Finding Number: 2023-002 Finding Type(s): Material weakness in internal control over compliance Non compliance related to the reporting compliance requirement Information on the Federal Program: Program Name: Health Center Program Cluster (AL 93.224) Federal Awards Project Title: Health Center Program Service Expansion - School Based Service Sites (SBSS) (H2E) Award Period: May 1, 2022 - April 30, 2023 Award Number: 22H2ECS45509 Agency: U.S. Department of Health and Human Services, HRSA Program Name: Health Center Program Cluster (AL 93.224 and 93.527) Federal Awards Project Title: American Rescue Plan Act Funding for Health Centers (H8F) Award Period: April 1, 2021 - March 31, 2024 Award Number: 21H8FCS40415C6 Agency: U.S. Department of Health and Human Services, HRSA Criteria: Management is responsible for ensuring required reports for federal awards include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Condition: In a nonstatistical sample, two of three annual Federal Financial Reports (FFR) tested included certain amounts which were not supported by underlying accounting records. The reports were to be completed on the accrual basis of accounting; however, based on procedures performed, it was determined the reports were completed on the cash basis of accounting. This resulted in the FFRs under-reporting grant expenditures for H2E and H8F by $13,183 and $320,691, respectively, and over-reporting unobligated (unused) funds for each grant by $13,183 and $320,691, respectively. Cause: The platform for filing the annual FFRs changed a few years ago from the Electronic Handbook to the Payment Management System (PMS). PMS is the platform in which the Organization requests the draw down of grant funds and completes quarterly Federal Cash Transaction reports. With the switch to PMS, certain amounts are now prepopulated on the FFR from the Organization's cash activity for the budget period. These amounts are required to be updated when the annual FFR is completed. Management was not aware the prepopulated amounts were to be updated. Effect: Inaccurate reports could result in the loss of grant dollars or the repayment of previously received grant dollars. Questioned Costs: None Repeat Finding: No Recommendation: We recommend management develop a procedure for the annual FFR filing, outlining each step in the process to help ensure the reports are completed accurately and are fully supported by the Organization's accounting records. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding. A process will be established related to the completion of federal reports.
Finding Number: 2023-002 Finding Type(s): Material weakness in internal control over compliance Non compliance related to the reporting compliance requirement Information on the Federal Program: Program Name: Health Center Program Cluster (AL 93.224) Federal Awards Project Title: Health Center Program Service Expansion - School Based Service Sites (SBSS) (H2E) Award Period: May 1, 2022 - April 30, 2023 Award Number: 22H2ECS45509 Agency: U.S. Department of Health and Human Services, HRSA Program Name: Health Center Program Cluster (AL 93.224 and 93.527) Federal Awards Project Title: American Rescue Plan Act Funding for Health Centers (H8F) Award Period: April 1, 2021 - March 31, 2024 Award Number: 21H8FCS40415C6 Agency: U.S. Department of Health and Human Services, HRSA Criteria: Management is responsible for ensuring required reports for federal awards include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Condition: In a nonstatistical sample, two of three annual Federal Financial Reports (FFR) tested included certain amounts which were not supported by underlying accounting records. The reports were to be completed on the accrual basis of accounting; however, based on procedures performed, it was determined the reports were completed on the cash basis of accounting. This resulted in the FFRs under-reporting grant expenditures for H2E and H8F by $13,183 and $320,691, respectively, and over-reporting unobligated (unused) funds for each grant by $13,183 and $320,691, respectively. Cause: The platform for filing the annual FFRs changed a few years ago from the Electronic Handbook to the Payment Management System (PMS). PMS is the platform in which the Organization requests the draw down of grant funds and completes quarterly Federal Cash Transaction reports. With the switch to PMS, certain amounts are now prepopulated on the FFR from the Organization's cash activity for the budget period. These amounts are required to be updated when the annual FFR is completed. Management was not aware the prepopulated amounts were to be updated. Effect: Inaccurate reports could result in the loss of grant dollars or the repayment of previously received grant dollars. Questioned Costs: None Repeat Finding: No Recommendation: We recommend management develop a procedure for the annual FFR filing, outlining each step in the process to help ensure the reports are completed accurately and are fully supported by the Organization's accounting records. Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding. A process will be established related to the completion of federal reports.