Audit 318078

FY End
2024-03-31
Total Expended
$7.09M
Findings
16
Programs
6
Year: 2024 Accepted: 2024-08-28
Auditor: Terry Horne CPA

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
485330 2024-001 Material Weakness - N
485331 2024-001 Material Weakness - N
485332 2024-001 Material Weakness - N
485333 2024-001 Material Weakness - N
485334 2024-002 Material Weakness - B
485335 2024-002 Material Weakness - B
485336 2024-002 Material Weakness - B
485337 2024-002 Material Weakness - B
1061772 2024-001 Material Weakness - N
1061773 2024-001 Material Weakness - N
1061774 2024-001 Material Weakness - N
1061775 2024-001 Material Weakness - N
1061776 2024-002 Material Weakness - B
1061777 2024-002 Material Weakness - B
1061778 2024-002 Material Weakness - B
1061779 2024-002 Material Weakness - B

Contacts

Name Title Type
C1E1FPLEVFL8 Aretha Powers Auditee
8437224122 Terry Horne Auditor
No contacts on file

Notes to SEFA

Title: Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Organization has elected not to use the 10 percent de minimus indirect cost rate allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: N/A Basis of presentation described
Title: Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Organization has elected not to use the 10 percent de minimus indirect cost rate allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: N/A Statement regarding use of subrecipients

Finding Details

Finding: 2024-001 Sliding Fee Discounts Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. 93.224 and 93.527 Criteria: Uniform Guidance, Special Tests & Provisions, Sliding Fee Discounts, 42 CFR, 56.303 Condition: Health centers that receive funding under the Health Center Program Cluster must prepare and apply a sliding fee discount so that the amounts owed for health center services by eligible patients are discounted based on the patient’s ability to pay. During compliance testing, it was determined that the Organization did not obtain and properly document all necessary elements required by the Organization’s policy and that incorrect sliding fee discounts were applied to certain patient accounts. Cause: There were deficiencies in internal controls over the Organization’s sliding fee program. For certain patient accounts that were tested as part of the audit, the Organization was unable to substantiate that proper documentation was obtained and that proper sliding fee discounts were applied to patient accounts in accordance with the Organization’s sliding fee scale and that incorrect sliding fee discounts were applied to certain patient accounts. Effect: Proper documentation was unavailable to substantiate that discounts were properly applied to patient accounts, and incorrect discounts were applied to certain patient accounts. Questioned Costs: None Context/Sampling: For 6 of 48 patients selected for testing, incorrect discounts were provided. One patient selected had no application and five patients received an incorrect discount. This sample was not, and was not intended to be, a statistically valid sample. The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that employees are properly trained to document and apply the sliding fee discounts in accordance with the Organization’s sliding fee policy. It is also recommended that sliding fee discounts are reviewed by a supervisor on a periodic basis to ensure compliance with the sliding fee scale. Views of Responsible Officials: Management concurs. Efforts will be made to implement corrective actions as recommended above. Contact Person: Dr. Aretha Powers, CEO Anticipated Date of Completion: September 30, 2024
Finding: 2024-001 Sliding Fee Discounts Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. 93.224 and 93.527 Criteria: Uniform Guidance, Special Tests & Provisions, Sliding Fee Discounts, 42 CFR, 56.303 Condition: Health centers that receive funding under the Health Center Program Cluster must prepare and apply a sliding fee discount so that the amounts owed for health center services by eligible patients are discounted based on the patient’s ability to pay. During compliance testing, it was determined that the Organization did not obtain and properly document all necessary elements required by the Organization’s policy and that incorrect sliding fee discounts were applied to certain patient accounts. Cause: There were deficiencies in internal controls over the Organization’s sliding fee program. For certain patient accounts that were tested as part of the audit, the Organization was unable to substantiate that proper documentation was obtained and that proper sliding fee discounts were applied to patient accounts in accordance with the Organization’s sliding fee scale and that incorrect sliding fee discounts were applied to certain patient accounts. Effect: Proper documentation was unavailable to substantiate that discounts were properly applied to patient accounts, and incorrect discounts were applied to certain patient accounts. Questioned Costs: None Context/Sampling: For 6 of 48 patients selected for testing, incorrect discounts were provided. One patient selected had no application and five patients received an incorrect discount. This sample was not, and was not intended to be, a statistically valid sample. The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that employees are properly trained to document and apply the sliding fee discounts in accordance with the Organization’s sliding fee policy. It is also recommended that sliding fee discounts are reviewed by a supervisor on a periodic basis to ensure compliance with the sliding fee scale. Views of Responsible Officials: Management concurs. Efforts will be made to implement corrective actions as recommended above. Contact Person: Dr. Aretha Powers, CEO Anticipated Date of Completion: September 30, 2024
Finding: 2024-001 Sliding Fee Discounts Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. 93.224 and 93.527 Criteria: Uniform Guidance, Special Tests & Provisions, Sliding Fee Discounts, 42 CFR, 56.303 Condition: Health centers that receive funding under the Health Center Program Cluster must prepare and apply a sliding fee discount so that the amounts owed for health center services by eligible patients are discounted based on the patient’s ability to pay. During compliance testing, it was determined that the Organization did not obtain and properly document all necessary elements required by the Organization’s policy and that incorrect sliding fee discounts were applied to certain patient accounts. Cause: There were deficiencies in internal controls over the Organization’s sliding fee program. For certain patient accounts that were tested as part of the audit, the Organization was unable to substantiate that proper documentation was obtained and that proper sliding fee discounts were applied to patient accounts in accordance with the Organization’s sliding fee scale and that incorrect sliding fee discounts were applied to certain patient accounts. Effect: Proper documentation was unavailable to substantiate that discounts were properly applied to patient accounts, and incorrect discounts were applied to certain patient accounts. Questioned Costs: None Context/Sampling: For 6 of 48 patients selected for testing, incorrect discounts were provided. One patient selected had no application and five patients received an incorrect discount. This sample was not, and was not intended to be, a statistically valid sample. The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that employees are properly trained to document and apply the sliding fee discounts in accordance with the Organization’s sliding fee policy. It is also recommended that sliding fee discounts are reviewed by a supervisor on a periodic basis to ensure compliance with the sliding fee scale. Views of Responsible Officials: Management concurs. Efforts will be made to implement corrective actions as recommended above. Contact Person: Dr. Aretha Powers, CEO Anticipated Date of Completion: September 30, 2024
Finding: 2024-001 Sliding Fee Discounts Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. 93.224 and 93.527 Criteria: Uniform Guidance, Special Tests & Provisions, Sliding Fee Discounts, 42 CFR, 56.303 Condition: Health centers that receive funding under the Health Center Program Cluster must prepare and apply a sliding fee discount so that the amounts owed for health center services by eligible patients are discounted based on the patient’s ability to pay. During compliance testing, it was determined that the Organization did not obtain and properly document all necessary elements required by the Organization’s policy and that incorrect sliding fee discounts were applied to certain patient accounts. Cause: There were deficiencies in internal controls over the Organization’s sliding fee program. For certain patient accounts that were tested as part of the audit, the Organization was unable to substantiate that proper documentation was obtained and that proper sliding fee discounts were applied to patient accounts in accordance with the Organization’s sliding fee scale and that incorrect sliding fee discounts were applied to certain patient accounts. Effect: Proper documentation was unavailable to substantiate that discounts were properly applied to patient accounts, and incorrect discounts were applied to certain patient accounts. Questioned Costs: None Context/Sampling: For 6 of 48 patients selected for testing, incorrect discounts were provided. One patient selected had no application and five patients received an incorrect discount. This sample was not, and was not intended to be, a statistically valid sample. The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that employees are properly trained to document and apply the sliding fee discounts in accordance with the Organization’s sliding fee policy. It is also recommended that sliding fee discounts are reviewed by a supervisor on a periodic basis to ensure compliance with the sliding fee scale. Views of Responsible Officials: Management concurs. Efforts will be made to implement corrective actions as recommended above. Contact Person: Dr. Aretha Powers, CEO Anticipated Date of Completion: September 30, 2024
Finding: 2024-002 Monthly Time/Activity Reports not Maintained for Salaried Employees Federal Program Identification: U.S. Department of Health and Human Services Health Center Cluster Assistance Listing No. 93.224 & 93.527 Criteria: Uniform Guidance Compliance Supplement, Grant Policy Statements, 45 CFR, 75.430 Condition: Time/activity reports (time sheets) are not maintained for salaried employees as required by federal cost principles and by the Organization’s policies. Cause: The Organization did not follow its policy that requires salaried employees to maintain time and effort reports that coincide with the Organization’s payroll cycle (at least on a monthly basis). Effect: Failure to comply with federal requirements regarding personnel cost and time and effort could result in a reduction of grant funds. Questioned Costs: None Context/Sampling: A test of payroll disbursements revealed that time and effort certifications for salaried employees were not maintained. The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: Procedures should be established to maintain time and effort reports by all salaried employees in accordance with the Organization’s policies. It is recommended that time and effort certifications be prepared no less than on a monthly basis and coincide with the Organization’s payroll cycle. Views of Responsible Officials: Procedures will be established to ensure that salaried employees maintain time and effort reports that coincide with the Organization’s payroll cycle. Contact Person: Dr. Aretha Powers, CEO Anticipated Date of Completion: September 30, 2024
Finding: 2024-002 Monthly Time/Activity Reports not Maintained for Salaried Employees Federal Program Identification: U.S. Department of Health and Human Services Health Center Cluster Assistance Listing No. 93.224 & 93.527 Criteria: Uniform Guidance Compliance Supplement, Grant Policy Statements, 45 CFR, 75.430 Condition: Time/activity reports (time sheets) are not maintained for salaried employees as required by federal cost principles and by the Organization’s policies. Cause: The Organization did not follow its policy that requires salaried employees to maintain time and effort reports that coincide with the Organization’s payroll cycle (at least on a monthly basis). Effect: Failure to comply with federal requirements regarding personnel cost and time and effort could result in a reduction of grant funds. Questioned Costs: None Context/Sampling: A test of payroll disbursements revealed that time and effort certifications for salaried employees were not maintained. The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: Procedures should be established to maintain time and effort reports by all salaried employees in accordance with the Organization’s policies. It is recommended that time and effort certifications be prepared no less than on a monthly basis and coincide with the Organization’s payroll cycle. Views of Responsible Officials: Procedures will be established to ensure that salaried employees maintain time and effort reports that coincide with the Organization’s payroll cycle. Contact Person: Dr. Aretha Powers, CEO Anticipated Date of Completion: September 30, 2024
Finding: 2024-002 Monthly Time/Activity Reports not Maintained for Salaried Employees Federal Program Identification: U.S. Department of Health and Human Services Health Center Cluster Assistance Listing No. 93.224 & 93.527 Criteria: Uniform Guidance Compliance Supplement, Grant Policy Statements, 45 CFR, 75.430 Condition: Time/activity reports (time sheets) are not maintained for salaried employees as required by federal cost principles and by the Organization’s policies. Cause: The Organization did not follow its policy that requires salaried employees to maintain time and effort reports that coincide with the Organization’s payroll cycle (at least on a monthly basis). Effect: Failure to comply with federal requirements regarding personnel cost and time and effort could result in a reduction of grant funds. Questioned Costs: None Context/Sampling: A test of payroll disbursements revealed that time and effort certifications for salaried employees were not maintained. The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: Procedures should be established to maintain time and effort reports by all salaried employees in accordance with the Organization’s policies. It is recommended that time and effort certifications be prepared no less than on a monthly basis and coincide with the Organization’s payroll cycle. Views of Responsible Officials: Procedures will be established to ensure that salaried employees maintain time and effort reports that coincide with the Organization’s payroll cycle. Contact Person: Dr. Aretha Powers, CEO Anticipated Date of Completion: September 30, 2024
Finding: 2024-002 Monthly Time/Activity Reports not Maintained for Salaried Employees Federal Program Identification: U.S. Department of Health and Human Services Health Center Cluster Assistance Listing No. 93.224 & 93.527 Criteria: Uniform Guidance Compliance Supplement, Grant Policy Statements, 45 CFR, 75.430 Condition: Time/activity reports (time sheets) are not maintained for salaried employees as required by federal cost principles and by the Organization’s policies. Cause: The Organization did not follow its policy that requires salaried employees to maintain time and effort reports that coincide with the Organization’s payroll cycle (at least on a monthly basis). Effect: Failure to comply with federal requirements regarding personnel cost and time and effort could result in a reduction of grant funds. Questioned Costs: None Context/Sampling: A test of payroll disbursements revealed that time and effort certifications for salaried employees were not maintained. The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: Procedures should be established to maintain time and effort reports by all salaried employees in accordance with the Organization’s policies. It is recommended that time and effort certifications be prepared no less than on a monthly basis and coincide with the Organization’s payroll cycle. Views of Responsible Officials: Procedures will be established to ensure that salaried employees maintain time and effort reports that coincide with the Organization’s payroll cycle. Contact Person: Dr. Aretha Powers, CEO Anticipated Date of Completion: September 30, 2024
Finding: 2024-001 Sliding Fee Discounts Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. 93.224 and 93.527 Criteria: Uniform Guidance, Special Tests & Provisions, Sliding Fee Discounts, 42 CFR, 56.303 Condition: Health centers that receive funding under the Health Center Program Cluster must prepare and apply a sliding fee discount so that the amounts owed for health center services by eligible patients are discounted based on the patient’s ability to pay. During compliance testing, it was determined that the Organization did not obtain and properly document all necessary elements required by the Organization’s policy and that incorrect sliding fee discounts were applied to certain patient accounts. Cause: There were deficiencies in internal controls over the Organization’s sliding fee program. For certain patient accounts that were tested as part of the audit, the Organization was unable to substantiate that proper documentation was obtained and that proper sliding fee discounts were applied to patient accounts in accordance with the Organization’s sliding fee scale and that incorrect sliding fee discounts were applied to certain patient accounts. Effect: Proper documentation was unavailable to substantiate that discounts were properly applied to patient accounts, and incorrect discounts were applied to certain patient accounts. Questioned Costs: None Context/Sampling: For 6 of 48 patients selected for testing, incorrect discounts were provided. One patient selected had no application and five patients received an incorrect discount. This sample was not, and was not intended to be, a statistically valid sample. The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that employees are properly trained to document and apply the sliding fee discounts in accordance with the Organization’s sliding fee policy. It is also recommended that sliding fee discounts are reviewed by a supervisor on a periodic basis to ensure compliance with the sliding fee scale. Views of Responsible Officials: Management concurs. Efforts will be made to implement corrective actions as recommended above. Contact Person: Dr. Aretha Powers, CEO Anticipated Date of Completion: September 30, 2024
Finding: 2024-001 Sliding Fee Discounts Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. 93.224 and 93.527 Criteria: Uniform Guidance, Special Tests & Provisions, Sliding Fee Discounts, 42 CFR, 56.303 Condition: Health centers that receive funding under the Health Center Program Cluster must prepare and apply a sliding fee discount so that the amounts owed for health center services by eligible patients are discounted based on the patient’s ability to pay. During compliance testing, it was determined that the Organization did not obtain and properly document all necessary elements required by the Organization’s policy and that incorrect sliding fee discounts were applied to certain patient accounts. Cause: There were deficiencies in internal controls over the Organization’s sliding fee program. For certain patient accounts that were tested as part of the audit, the Organization was unable to substantiate that proper documentation was obtained and that proper sliding fee discounts were applied to patient accounts in accordance with the Organization’s sliding fee scale and that incorrect sliding fee discounts were applied to certain patient accounts. Effect: Proper documentation was unavailable to substantiate that discounts were properly applied to patient accounts, and incorrect discounts were applied to certain patient accounts. Questioned Costs: None Context/Sampling: For 6 of 48 patients selected for testing, incorrect discounts were provided. One patient selected had no application and five patients received an incorrect discount. This sample was not, and was not intended to be, a statistically valid sample. The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that employees are properly trained to document and apply the sliding fee discounts in accordance with the Organization’s sliding fee policy. It is also recommended that sliding fee discounts are reviewed by a supervisor on a periodic basis to ensure compliance with the sliding fee scale. Views of Responsible Officials: Management concurs. Efforts will be made to implement corrective actions as recommended above. Contact Person: Dr. Aretha Powers, CEO Anticipated Date of Completion: September 30, 2024
Finding: 2024-001 Sliding Fee Discounts Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. 93.224 and 93.527 Criteria: Uniform Guidance, Special Tests & Provisions, Sliding Fee Discounts, 42 CFR, 56.303 Condition: Health centers that receive funding under the Health Center Program Cluster must prepare and apply a sliding fee discount so that the amounts owed for health center services by eligible patients are discounted based on the patient’s ability to pay. During compliance testing, it was determined that the Organization did not obtain and properly document all necessary elements required by the Organization’s policy and that incorrect sliding fee discounts were applied to certain patient accounts. Cause: There were deficiencies in internal controls over the Organization’s sliding fee program. For certain patient accounts that were tested as part of the audit, the Organization was unable to substantiate that proper documentation was obtained and that proper sliding fee discounts were applied to patient accounts in accordance with the Organization’s sliding fee scale and that incorrect sliding fee discounts were applied to certain patient accounts. Effect: Proper documentation was unavailable to substantiate that discounts were properly applied to patient accounts, and incorrect discounts were applied to certain patient accounts. Questioned Costs: None Context/Sampling: For 6 of 48 patients selected for testing, incorrect discounts were provided. One patient selected had no application and five patients received an incorrect discount. This sample was not, and was not intended to be, a statistically valid sample. The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that employees are properly trained to document and apply the sliding fee discounts in accordance with the Organization’s sliding fee policy. It is also recommended that sliding fee discounts are reviewed by a supervisor on a periodic basis to ensure compliance with the sliding fee scale. Views of Responsible Officials: Management concurs. Efforts will be made to implement corrective actions as recommended above. Contact Person: Dr. Aretha Powers, CEO Anticipated Date of Completion: September 30, 2024
Finding: 2024-001 Sliding Fee Discounts Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. 93.224 and 93.527 Criteria: Uniform Guidance, Special Tests & Provisions, Sliding Fee Discounts, 42 CFR, 56.303 Condition: Health centers that receive funding under the Health Center Program Cluster must prepare and apply a sliding fee discount so that the amounts owed for health center services by eligible patients are discounted based on the patient’s ability to pay. During compliance testing, it was determined that the Organization did not obtain and properly document all necessary elements required by the Organization’s policy and that incorrect sliding fee discounts were applied to certain patient accounts. Cause: There were deficiencies in internal controls over the Organization’s sliding fee program. For certain patient accounts that were tested as part of the audit, the Organization was unable to substantiate that proper documentation was obtained and that proper sliding fee discounts were applied to patient accounts in accordance with the Organization’s sliding fee scale and that incorrect sliding fee discounts were applied to certain patient accounts. Effect: Proper documentation was unavailable to substantiate that discounts were properly applied to patient accounts, and incorrect discounts were applied to certain patient accounts. Questioned Costs: None Context/Sampling: For 6 of 48 patients selected for testing, incorrect discounts were provided. One patient selected had no application and five patients received an incorrect discount. This sample was not, and was not intended to be, a statistically valid sample. The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that employees are properly trained to document and apply the sliding fee discounts in accordance with the Organization’s sliding fee policy. It is also recommended that sliding fee discounts are reviewed by a supervisor on a periodic basis to ensure compliance with the sliding fee scale. Views of Responsible Officials: Management concurs. Efforts will be made to implement corrective actions as recommended above. Contact Person: Dr. Aretha Powers, CEO Anticipated Date of Completion: September 30, 2024
Finding: 2024-002 Monthly Time/Activity Reports not Maintained for Salaried Employees Federal Program Identification: U.S. Department of Health and Human Services Health Center Cluster Assistance Listing No. 93.224 & 93.527 Criteria: Uniform Guidance Compliance Supplement, Grant Policy Statements, 45 CFR, 75.430 Condition: Time/activity reports (time sheets) are not maintained for salaried employees as required by federal cost principles and by the Organization’s policies. Cause: The Organization did not follow its policy that requires salaried employees to maintain time and effort reports that coincide with the Organization’s payroll cycle (at least on a monthly basis). Effect: Failure to comply with federal requirements regarding personnel cost and time and effort could result in a reduction of grant funds. Questioned Costs: None Context/Sampling: A test of payroll disbursements revealed that time and effort certifications for salaried employees were not maintained. The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: Procedures should be established to maintain time and effort reports by all salaried employees in accordance with the Organization’s policies. It is recommended that time and effort certifications be prepared no less than on a monthly basis and coincide with the Organization’s payroll cycle. Views of Responsible Officials: Procedures will be established to ensure that salaried employees maintain time and effort reports that coincide with the Organization’s payroll cycle. Contact Person: Dr. Aretha Powers, CEO Anticipated Date of Completion: September 30, 2024
Finding: 2024-002 Monthly Time/Activity Reports not Maintained for Salaried Employees Federal Program Identification: U.S. Department of Health and Human Services Health Center Cluster Assistance Listing No. 93.224 & 93.527 Criteria: Uniform Guidance Compliance Supplement, Grant Policy Statements, 45 CFR, 75.430 Condition: Time/activity reports (time sheets) are not maintained for salaried employees as required by federal cost principles and by the Organization’s policies. Cause: The Organization did not follow its policy that requires salaried employees to maintain time and effort reports that coincide with the Organization’s payroll cycle (at least on a monthly basis). Effect: Failure to comply with federal requirements regarding personnel cost and time and effort could result in a reduction of grant funds. Questioned Costs: None Context/Sampling: A test of payroll disbursements revealed that time and effort certifications for salaried employees were not maintained. The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: Procedures should be established to maintain time and effort reports by all salaried employees in accordance with the Organization’s policies. It is recommended that time and effort certifications be prepared no less than on a monthly basis and coincide with the Organization’s payroll cycle. Views of Responsible Officials: Procedures will be established to ensure that salaried employees maintain time and effort reports that coincide with the Organization’s payroll cycle. Contact Person: Dr. Aretha Powers, CEO Anticipated Date of Completion: September 30, 2024
Finding: 2024-002 Monthly Time/Activity Reports not Maintained for Salaried Employees Federal Program Identification: U.S. Department of Health and Human Services Health Center Cluster Assistance Listing No. 93.224 & 93.527 Criteria: Uniform Guidance Compliance Supplement, Grant Policy Statements, 45 CFR, 75.430 Condition: Time/activity reports (time sheets) are not maintained for salaried employees as required by federal cost principles and by the Organization’s policies. Cause: The Organization did not follow its policy that requires salaried employees to maintain time and effort reports that coincide with the Organization’s payroll cycle (at least on a monthly basis). Effect: Failure to comply with federal requirements regarding personnel cost and time and effort could result in a reduction of grant funds. Questioned Costs: None Context/Sampling: A test of payroll disbursements revealed that time and effort certifications for salaried employees were not maintained. The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: Procedures should be established to maintain time and effort reports by all salaried employees in accordance with the Organization’s policies. It is recommended that time and effort certifications be prepared no less than on a monthly basis and coincide with the Organization’s payroll cycle. Views of Responsible Officials: Procedures will be established to ensure that salaried employees maintain time and effort reports that coincide with the Organization’s payroll cycle. Contact Person: Dr. Aretha Powers, CEO Anticipated Date of Completion: September 30, 2024
Finding: 2024-002 Monthly Time/Activity Reports not Maintained for Salaried Employees Federal Program Identification: U.S. Department of Health and Human Services Health Center Cluster Assistance Listing No. 93.224 & 93.527 Criteria: Uniform Guidance Compliance Supplement, Grant Policy Statements, 45 CFR, 75.430 Condition: Time/activity reports (time sheets) are not maintained for salaried employees as required by federal cost principles and by the Organization’s policies. Cause: The Organization did not follow its policy that requires salaried employees to maintain time and effort reports that coincide with the Organization’s payroll cycle (at least on a monthly basis). Effect: Failure to comply with federal requirements regarding personnel cost and time and effort could result in a reduction of grant funds. Questioned Costs: None Context/Sampling: A test of payroll disbursements revealed that time and effort certifications for salaried employees were not maintained. The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: Procedures should be established to maintain time and effort reports by all salaried employees in accordance with the Organization’s policies. It is recommended that time and effort certifications be prepared no less than on a monthly basis and coincide with the Organization’s payroll cycle. Views of Responsible Officials: Procedures will be established to ensure that salaried employees maintain time and effort reports that coincide with the Organization’s payroll cycle. Contact Person: Dr. Aretha Powers, CEO Anticipated Date of Completion: September 30, 2024