Audit 318579

FY End
2022-12-31
Total Expended
$12.29M
Findings
24
Programs
8
Year: 2022 Accepted: 2024-09-05
Auditor: Sjt Group LLC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
485736 2022-006 - Yes P
485737 2022-004 Material Weakness Yes B
485738 2022-005 Significant Deficiency Yes L
485739 2022-006 - Yes P
485740 2022-004 Material Weakness Yes B
485741 2022-005 Significant Deficiency Yes L
485742 2022-006 - Yes P
485743 2022-006 - Yes P
485744 2022-006 - Yes P
485745 2022-006 - Yes P
485746 2022-006 - Yes P
485747 2022-006 - Yes P
1062178 2022-006 - Yes P
1062179 2022-004 Material Weakness Yes B
1062180 2022-005 Significant Deficiency Yes L
1062181 2022-006 - Yes P
1062182 2022-004 Material Weakness Yes B
1062183 2022-005 Significant Deficiency Yes L
1062184 2022-006 - Yes P
1062185 2022-006 - Yes P
1062186 2022-006 - Yes P
1062187 2022-006 - Yes P
1062188 2022-006 - Yes P
1062189 2022-006 - Yes P

Contacts

Name Title Type
GM5RQCKU6TN1 Shawna Gonzales Auditee
5058737414 Joshua Trujillo Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: General Expenditures reported on the Schedule are reported on the modified 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: FCCH has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of First Choice Community Healthcare, Inc. (FCCH) under programs of the federal government for the year ended December 31, 2022. The information in the Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of FCCH, it is not intended to and does not present the financial position, changes in net assets, or cash flows of FCCH.
Title: Other Direct Reimbursements Accounting Policies: General Expenditures reported on the Schedule are reported on the modified 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: FCCH has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. FCCH receives certain direct reimbursement revenue from federal agencies under the Medicare and Medicaid programs, which are not subject to the requirements of the Uniform Guidance and are not presented in the Schedule.
Title: Federal Loan Outstanding Accounting Policies: General Expenditures reported on the Schedule are reported on the modified 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: FCCH has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. FCCH has one loan outstanding with the U.S. Department of Agriculture at December 31, 2022 totaling $585,834. This loan was issued under ALN 10.854. According to the 2022 OMB Compliance Supplement, prior loans balances issued under ALN 10.854 are not considered to have continuing compliance requirements under 2 CFR 200, Section 200.502(d). Prior loans that do not have continuing compliance requirements other than to repay the loans are not considered federal awards expended and, therefore, are not required to be audited under 2 CFR Part 200, Subpart F.
Title: Reconciliation of the Schedule to the Financial Statements Accounting Policies: General Expenditures reported on the Schedule are reported on the modified 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: FCCH has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The following is a reconciliation of the expenditures reported on the Schedule to the contract and grants revenue reported in the financial statements: Contracts and grants revenue reported in the statement of activities $ 14,341,599 Less: Nonfederal contract and grant revenue (2,055,372) Total expenditures of federal awards $ 12,286,227

Finding Details

2022-006—Late Audit Report Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award number and year: All Criteria: According to 2 CFR Part 200.512, the annual single audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period (September 30, 2022). Condition: FCCH’s 2022 single audit reporting package was not submitted by the due date of September 30, 2023. Questioned Costs: None Context: N/A Cause: FCCH experienced turnover in the accounting department in key positions in recent years, which caused significant delays in completion of the year-end reconciliations of the financial statements and the schedule of expenditures of federal awards. Effect: FCCH was unable to completely reconcile certain general ledger accounts timely, which resulted in the audit not being completed within the reporting deadline. Auditor’s Recommendations: FCCH should implement its approved policies and procedures and complete the year-end account reconciliations in a timely manner to ensure the timely completion of the audit and submission of the single audit reporting package. Management’s Response: FCCH leadership shall ensure accountability for completing audits and submitting reports in a timely manner. Now that vacant positions in the accounting department have been filled, reconciliations are being caught up as efficiently as possible so that delinquent audits can also be conducted and concluded. Furthermore, the FCCH Board of Directors is undergoing compliance training, and they shall also ensure accountability for completing audits in the future once the audits are caught up.
2022-004—Allowable Costs Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Health Center Cluster Assistance Listing Number (ALN): 93.224, 93.527 Award number and year: H80C00202 (1/1/2022–12/31/2022) H8ECS37778 (5/1/2020–4/30/2022) H8FCS40603 (4/1/2021–3/31/2023) C8ECS43815 (9/15/2021–9/14/2024) Criteria: According to 2 CFR Part 225, to be allowable under federal awards, costs must be adequately documented, be necessary and reasonable for the performance of the federal award and be allocable thereto under the principles in 2 CFR Part 200, Subpart E. Additionally, non-Federal entities receiving federal awards should establish and maintain internal control designed to reasonably ensure compliance with Federal laws, regulations and program compliance requirements. Condition: For 14 of 25 nonpayroll transactions tested, there was no evidence available supporting that the items ordered had been received by the program/location for which they were ordered. Questioned Costs: $31,600. Context: 14 of 25 nonpayroll transactions tested were not adequately documented. Cause: FCCH has not developed policies and procedures requiring documentation that goods purchased have been received by the program/location prior to payments being approved and remitted to vendors. Effect: FCCH may not be able to demonstrate that some costs charged to federal programs are allowable. Auditor’s Recommendations: FCCH should implement its approved policies and procedures to ensure that amounts charged to federal programs are allowable and properly documented. Additionally, FCCH should consider updating its policies and procedures to require documentation that goods purchased have been received by the program/location prior to payments being remitted to vendors. Management’s Response: FCCH management shall promote accountability for following approved policies and procedures over employee records and accounts payable. Receiving policies and processes, including documentation for receiving inventory and equipment, should be developed and then implemented. All involved personnel should be trained in the new policies.
2022-005—Reporting Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Health Center Cluster Assistance Listing Number (ALN): 93.224, 93.527 Award number and year: C8ECS43815 (9/15/2021–9/14/2024) H8FCS40603 (4/1/2021–3/31/2023) Criteria: Federal Financial Reports (SF-425) are required to be submitted to the granting agency according to the Notice of Awards for these programs. Condition: Two of four SF-425 reports tested were submitted past the deadline after the end of each period. Questioned Costs: None Context: Two of four SF-425 reports tested for these awards. Cause: FCCH experienced turnover in the accounting department in key positions in recent years and, as a result, approved policies and procedures were not followed. Additionally, program personnel did not review and approve the reports for submission in a timely manner. Effect: FCCH is not in compliance with reporting requirements for these awards. Auditor’s Recommendations: FCCH should implement its Grants/Contracts Submission and Management Policies and Procedures to ensure all program reports are properly completed and submitted by the required due dates. Management’s Response: FCCH shall implement its Grants/Contracts Submission and Management Policies and Procedures and educate staff to ensure all program reports are properly completed and submitted by the required due dates. Access to reporting portals shall be granted to and maintained by appropriate personnel so that turnover does not impair compliance.
2022-006—Late Audit Report Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award number and year: All Criteria: According to 2 CFR Part 200.512, the annual single audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period (September 30, 2022). Condition: FCCH’s 2022 single audit reporting package was not submitted by the due date of September 30, 2023. Questioned Costs: None Context: N/A Cause: FCCH experienced turnover in the accounting department in key positions in recent years, which caused significant delays in completion of the year-end reconciliations of the financial statements and the schedule of expenditures of federal awards. Effect: FCCH was unable to completely reconcile certain general ledger accounts timely, which resulted in the audit not being completed within the reporting deadline. Auditor’s Recommendations: FCCH should implement its approved policies and procedures and complete the year-end account reconciliations in a timely manner to ensure the timely completion of the audit and submission of the single audit reporting package. Management’s Response: FCCH leadership shall ensure accountability for completing audits and submitting reports in a timely manner. Now that vacant positions in the accounting department have been filled, reconciliations are being caught up as efficiently as possible so that delinquent audits can also be conducted and concluded. Furthermore, the FCCH Board of Directors is undergoing compliance training, and they shall also ensure accountability for completing audits in the future once the audits are caught up.
2022-004—Allowable Costs Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Health Center Cluster Assistance Listing Number (ALN): 93.224, 93.527 Award number and year: H80C00202 (1/1/2022–12/31/2022) H8ECS37778 (5/1/2020–4/30/2022) H8FCS40603 (4/1/2021–3/31/2023) C8ECS43815 (9/15/2021–9/14/2024) Criteria: According to 2 CFR Part 225, to be allowable under federal awards, costs must be adequately documented, be necessary and reasonable for the performance of the federal award and be allocable thereto under the principles in 2 CFR Part 200, Subpart E. Additionally, non-Federal entities receiving federal awards should establish and maintain internal control designed to reasonably ensure compliance with Federal laws, regulations and program compliance requirements. Condition: For 14 of 25 nonpayroll transactions tested, there was no evidence available supporting that the items ordered had been received by the program/location for which they were ordered. Questioned Costs: $31,600. Context: 14 of 25 nonpayroll transactions tested were not adequately documented. Cause: FCCH has not developed policies and procedures requiring documentation that goods purchased have been received by the program/location prior to payments being approved and remitted to vendors. Effect: FCCH may not be able to demonstrate that some costs charged to federal programs are allowable. Auditor’s Recommendations: FCCH should implement its approved policies and procedures to ensure that amounts charged to federal programs are allowable and properly documented. Additionally, FCCH should consider updating its policies and procedures to require documentation that goods purchased have been received by the program/location prior to payments being remitted to vendors. Management’s Response: FCCH management shall promote accountability for following approved policies and procedures over employee records and accounts payable. Receiving policies and processes, including documentation for receiving inventory and equipment, should be developed and then implemented. All involved personnel should be trained in the new policies.
2022-005—Reporting Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Health Center Cluster Assistance Listing Number (ALN): 93.224, 93.527 Award number and year: C8ECS43815 (9/15/2021–9/14/2024) H8FCS40603 (4/1/2021–3/31/2023) Criteria: Federal Financial Reports (SF-425) are required to be submitted to the granting agency according to the Notice of Awards for these programs. Condition: Two of four SF-425 reports tested were submitted past the deadline after the end of each period. Questioned Costs: None Context: Two of four SF-425 reports tested for these awards. Cause: FCCH experienced turnover in the accounting department in key positions in recent years and, as a result, approved policies and procedures were not followed. Additionally, program personnel did not review and approve the reports for submission in a timely manner. Effect: FCCH is not in compliance with reporting requirements for these awards. Auditor’s Recommendations: FCCH should implement its Grants/Contracts Submission and Management Policies and Procedures to ensure all program reports are properly completed and submitted by the required due dates. Management’s Response: FCCH shall implement its Grants/Contracts Submission and Management Policies and Procedures and educate staff to ensure all program reports are properly completed and submitted by the required due dates. Access to reporting portals shall be granted to and maintained by appropriate personnel so that turnover does not impair compliance.
2022-006—Late Audit Report Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award number and year: All Criteria: According to 2 CFR Part 200.512, the annual single audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period (September 30, 2022). Condition: FCCH’s 2022 single audit reporting package was not submitted by the due date of September 30, 2023. Questioned Costs: None Context: N/A Cause: FCCH experienced turnover in the accounting department in key positions in recent years, which caused significant delays in completion of the year-end reconciliations of the financial statements and the schedule of expenditures of federal awards. Effect: FCCH was unable to completely reconcile certain general ledger accounts timely, which resulted in the audit not being completed within the reporting deadline. Auditor’s Recommendations: FCCH should implement its approved policies and procedures and complete the year-end account reconciliations in a timely manner to ensure the timely completion of the audit and submission of the single audit reporting package. Management’s Response: FCCH leadership shall ensure accountability for completing audits and submitting reports in a timely manner. Now that vacant positions in the accounting department have been filled, reconciliations are being caught up as efficiently as possible so that delinquent audits can also be conducted and concluded. Furthermore, the FCCH Board of Directors is undergoing compliance training, and they shall also ensure accountability for completing audits in the future once the audits are caught up.
2022-006—Late Audit Report Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award number and year: All Criteria: According to 2 CFR Part 200.512, the annual single audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period (September 30, 2022). Condition: FCCH’s 2022 single audit reporting package was not submitted by the due date of September 30, 2023. Questioned Costs: None Context: N/A Cause: FCCH experienced turnover in the accounting department in key positions in recent years, which caused significant delays in completion of the year-end reconciliations of the financial statements and the schedule of expenditures of federal awards. Effect: FCCH was unable to completely reconcile certain general ledger accounts timely, which resulted in the audit not being completed within the reporting deadline. Auditor’s Recommendations: FCCH should implement its approved policies and procedures and complete the year-end account reconciliations in a timely manner to ensure the timely completion of the audit and submission of the single audit reporting package. Management’s Response: FCCH leadership shall ensure accountability for completing audits and submitting reports in a timely manner. Now that vacant positions in the accounting department have been filled, reconciliations are being caught up as efficiently as possible so that delinquent audits can also be conducted and concluded. Furthermore, the FCCH Board of Directors is undergoing compliance training, and they shall also ensure accountability for completing audits in the future once the audits are caught up.
2022-006—Late Audit Report Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award number and year: All Criteria: According to 2 CFR Part 200.512, the annual single audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period (September 30, 2022). Condition: FCCH’s 2022 single audit reporting package was not submitted by the due date of September 30, 2023. Questioned Costs: None Context: N/A Cause: FCCH experienced turnover in the accounting department in key positions in recent years, which caused significant delays in completion of the year-end reconciliations of the financial statements and the schedule of expenditures of federal awards. Effect: FCCH was unable to completely reconcile certain general ledger accounts timely, which resulted in the audit not being completed within the reporting deadline. Auditor’s Recommendations: FCCH should implement its approved policies and procedures and complete the year-end account reconciliations in a timely manner to ensure the timely completion of the audit and submission of the single audit reporting package. Management’s Response: FCCH leadership shall ensure accountability for completing audits and submitting reports in a timely manner. Now that vacant positions in the accounting department have been filled, reconciliations are being caught up as efficiently as possible so that delinquent audits can also be conducted and concluded. Furthermore, the FCCH Board of Directors is undergoing compliance training, and they shall also ensure accountability for completing audits in the future once the audits are caught up.
2022-006—Late Audit Report Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award number and year: All Criteria: According to 2 CFR Part 200.512, the annual single audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period (September 30, 2022). Condition: FCCH’s 2022 single audit reporting package was not submitted by the due date of September 30, 2023. Questioned Costs: None Context: N/A Cause: FCCH experienced turnover in the accounting department in key positions in recent years, which caused significant delays in completion of the year-end reconciliations of the financial statements and the schedule of expenditures of federal awards. Effect: FCCH was unable to completely reconcile certain general ledger accounts timely, which resulted in the audit not being completed within the reporting deadline. Auditor’s Recommendations: FCCH should implement its approved policies and procedures and complete the year-end account reconciliations in a timely manner to ensure the timely completion of the audit and submission of the single audit reporting package. Management’s Response: FCCH leadership shall ensure accountability for completing audits and submitting reports in a timely manner. Now that vacant positions in the accounting department have been filled, reconciliations are being caught up as efficiently as possible so that delinquent audits can also be conducted and concluded. Furthermore, the FCCH Board of Directors is undergoing compliance training, and they shall also ensure accountability for completing audits in the future once the audits are caught up.
2022-006—Late Audit Report Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award number and year: All Criteria: According to 2 CFR Part 200.512, the annual single audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period (September 30, 2022). Condition: FCCH’s 2022 single audit reporting package was not submitted by the due date of September 30, 2023. Questioned Costs: None Context: N/A Cause: FCCH experienced turnover in the accounting department in key positions in recent years, which caused significant delays in completion of the year-end reconciliations of the financial statements and the schedule of expenditures of federal awards. Effect: FCCH was unable to completely reconcile certain general ledger accounts timely, which resulted in the audit not being completed within the reporting deadline. Auditor’s Recommendations: FCCH should implement its approved policies and procedures and complete the year-end account reconciliations in a timely manner to ensure the timely completion of the audit and submission of the single audit reporting package. Management’s Response: FCCH leadership shall ensure accountability for completing audits and submitting reports in a timely manner. Now that vacant positions in the accounting department have been filled, reconciliations are being caught up as efficiently as possible so that delinquent audits can also be conducted and concluded. Furthermore, the FCCH Board of Directors is undergoing compliance training, and they shall also ensure accountability for completing audits in the future once the audits are caught up.
2022-006—Late Audit Report Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award number and year: All Criteria: According to 2 CFR Part 200.512, the annual single audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period (September 30, 2022). Condition: FCCH’s 2022 single audit reporting package was not submitted by the due date of September 30, 2023. Questioned Costs: None Context: N/A Cause: FCCH experienced turnover in the accounting department in key positions in recent years, which caused significant delays in completion of the year-end reconciliations of the financial statements and the schedule of expenditures of federal awards. Effect: FCCH was unable to completely reconcile certain general ledger accounts timely, which resulted in the audit not being completed within the reporting deadline. Auditor’s Recommendations: FCCH should implement its approved policies and procedures and complete the year-end account reconciliations in a timely manner to ensure the timely completion of the audit and submission of the single audit reporting package. Management’s Response: FCCH leadership shall ensure accountability for completing audits and submitting reports in a timely manner. Now that vacant positions in the accounting department have been filled, reconciliations are being caught up as efficiently as possible so that delinquent audits can also be conducted and concluded. Furthermore, the FCCH Board of Directors is undergoing compliance training, and they shall also ensure accountability for completing audits in the future once the audits are caught up.
2022-006—Late Audit Report Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award number and year: All Criteria: According to 2 CFR Part 200.512, the annual single audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period (September 30, 2022). Condition: FCCH’s 2022 single audit reporting package was not submitted by the due date of September 30, 2023. Questioned Costs: None Context: N/A Cause: FCCH experienced turnover in the accounting department in key positions in recent years, which caused significant delays in completion of the year-end reconciliations of the financial statements and the schedule of expenditures of federal awards. Effect: FCCH was unable to completely reconcile certain general ledger accounts timely, which resulted in the audit not being completed within the reporting deadline. Auditor’s Recommendations: FCCH should implement its approved policies and procedures and complete the year-end account reconciliations in a timely manner to ensure the timely completion of the audit and submission of the single audit reporting package. Management’s Response: FCCH leadership shall ensure accountability for completing audits and submitting reports in a timely manner. Now that vacant positions in the accounting department have been filled, reconciliations are being caught up as efficiently as possible so that delinquent audits can also be conducted and concluded. Furthermore, the FCCH Board of Directors is undergoing compliance training, and they shall also ensure accountability for completing audits in the future once the audits are caught up.
2022-004—Allowable Costs Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Health Center Cluster Assistance Listing Number (ALN): 93.224, 93.527 Award number and year: H80C00202 (1/1/2022–12/31/2022) H8ECS37778 (5/1/2020–4/30/2022) H8FCS40603 (4/1/2021–3/31/2023) C8ECS43815 (9/15/2021–9/14/2024) Criteria: According to 2 CFR Part 225, to be allowable under federal awards, costs must be adequately documented, be necessary and reasonable for the performance of the federal award and be allocable thereto under the principles in 2 CFR Part 200, Subpart E. Additionally, non-Federal entities receiving federal awards should establish and maintain internal control designed to reasonably ensure compliance with Federal laws, regulations and program compliance requirements. Condition: For 14 of 25 nonpayroll transactions tested, there was no evidence available supporting that the items ordered had been received by the program/location for which they were ordered. Questioned Costs: $31,600. Context: 14 of 25 nonpayroll transactions tested were not adequately documented. Cause: FCCH has not developed policies and procedures requiring documentation that goods purchased have been received by the program/location prior to payments being approved and remitted to vendors. Effect: FCCH may not be able to demonstrate that some costs charged to federal programs are allowable. Auditor’s Recommendations: FCCH should implement its approved policies and procedures to ensure that amounts charged to federal programs are allowable and properly documented. Additionally, FCCH should consider updating its policies and procedures to require documentation that goods purchased have been received by the program/location prior to payments being remitted to vendors. Management’s Response: FCCH management shall promote accountability for following approved policies and procedures over employee records and accounts payable. Receiving policies and processes, including documentation for receiving inventory and equipment, should be developed and then implemented. All involved personnel should be trained in the new policies.
2022-005—Reporting Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Health Center Cluster Assistance Listing Number (ALN): 93.224, 93.527 Award number and year: C8ECS43815 (9/15/2021–9/14/2024) H8FCS40603 (4/1/2021–3/31/2023) Criteria: Federal Financial Reports (SF-425) are required to be submitted to the granting agency according to the Notice of Awards for these programs. Condition: Two of four SF-425 reports tested were submitted past the deadline after the end of each period. Questioned Costs: None Context: Two of four SF-425 reports tested for these awards. Cause: FCCH experienced turnover in the accounting department in key positions in recent years and, as a result, approved policies and procedures were not followed. Additionally, program personnel did not review and approve the reports for submission in a timely manner. Effect: FCCH is not in compliance with reporting requirements for these awards. Auditor’s Recommendations: FCCH should implement its Grants/Contracts Submission and Management Policies and Procedures to ensure all program reports are properly completed and submitted by the required due dates. Management’s Response: FCCH shall implement its Grants/Contracts Submission and Management Policies and Procedures and educate staff to ensure all program reports are properly completed and submitted by the required due dates. Access to reporting portals shall be granted to and maintained by appropriate personnel so that turnover does not impair compliance.
2022-006—Late Audit Report Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award number and year: All Criteria: According to 2 CFR Part 200.512, the annual single audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period (September 30, 2022). Condition: FCCH’s 2022 single audit reporting package was not submitted by the due date of September 30, 2023. Questioned Costs: None Context: N/A Cause: FCCH experienced turnover in the accounting department in key positions in recent years, which caused significant delays in completion of the year-end reconciliations of the financial statements and the schedule of expenditures of federal awards. Effect: FCCH was unable to completely reconcile certain general ledger accounts timely, which resulted in the audit not being completed within the reporting deadline. Auditor’s Recommendations: FCCH should implement its approved policies and procedures and complete the year-end account reconciliations in a timely manner to ensure the timely completion of the audit and submission of the single audit reporting package. Management’s Response: FCCH leadership shall ensure accountability for completing audits and submitting reports in a timely manner. Now that vacant positions in the accounting department have been filled, reconciliations are being caught up as efficiently as possible so that delinquent audits can also be conducted and concluded. Furthermore, the FCCH Board of Directors is undergoing compliance training, and they shall also ensure accountability for completing audits in the future once the audits are caught up.
2022-004—Allowable Costs Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Health Center Cluster Assistance Listing Number (ALN): 93.224, 93.527 Award number and year: H80C00202 (1/1/2022–12/31/2022) H8ECS37778 (5/1/2020–4/30/2022) H8FCS40603 (4/1/2021–3/31/2023) C8ECS43815 (9/15/2021–9/14/2024) Criteria: According to 2 CFR Part 225, to be allowable under federal awards, costs must be adequately documented, be necessary and reasonable for the performance of the federal award and be allocable thereto under the principles in 2 CFR Part 200, Subpart E. Additionally, non-Federal entities receiving federal awards should establish and maintain internal control designed to reasonably ensure compliance with Federal laws, regulations and program compliance requirements. Condition: For 14 of 25 nonpayroll transactions tested, there was no evidence available supporting that the items ordered had been received by the program/location for which they were ordered. Questioned Costs: $31,600. Context: 14 of 25 nonpayroll transactions tested were not adequately documented. Cause: FCCH has not developed policies and procedures requiring documentation that goods purchased have been received by the program/location prior to payments being approved and remitted to vendors. Effect: FCCH may not be able to demonstrate that some costs charged to federal programs are allowable. Auditor’s Recommendations: FCCH should implement its approved policies and procedures to ensure that amounts charged to federal programs are allowable and properly documented. Additionally, FCCH should consider updating its policies and procedures to require documentation that goods purchased have been received by the program/location prior to payments being remitted to vendors. Management’s Response: FCCH management shall promote accountability for following approved policies and procedures over employee records and accounts payable. Receiving policies and processes, including documentation for receiving inventory and equipment, should be developed and then implemented. All involved personnel should be trained in the new policies.
2022-005—Reporting Federal program information: Funding agency: U.S. Department of Health and Human Services Title: Health Center Cluster Assistance Listing Number (ALN): 93.224, 93.527 Award number and year: C8ECS43815 (9/15/2021–9/14/2024) H8FCS40603 (4/1/2021–3/31/2023) Criteria: Federal Financial Reports (SF-425) are required to be submitted to the granting agency according to the Notice of Awards for these programs. Condition: Two of four SF-425 reports tested were submitted past the deadline after the end of each period. Questioned Costs: None Context: Two of four SF-425 reports tested for these awards. Cause: FCCH experienced turnover in the accounting department in key positions in recent years and, as a result, approved policies and procedures were not followed. Additionally, program personnel did not review and approve the reports for submission in a timely manner. Effect: FCCH is not in compliance with reporting requirements for these awards. Auditor’s Recommendations: FCCH should implement its Grants/Contracts Submission and Management Policies and Procedures to ensure all program reports are properly completed and submitted by the required due dates. Management’s Response: FCCH shall implement its Grants/Contracts Submission and Management Policies and Procedures and educate staff to ensure all program reports are properly completed and submitted by the required due dates. Access to reporting portals shall be granted to and maintained by appropriate personnel so that turnover does not impair compliance.
2022-006—Late Audit Report Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award number and year: All Criteria: According to 2 CFR Part 200.512, the annual single audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period (September 30, 2022). Condition: FCCH’s 2022 single audit reporting package was not submitted by the due date of September 30, 2023. Questioned Costs: None Context: N/A Cause: FCCH experienced turnover in the accounting department in key positions in recent years, which caused significant delays in completion of the year-end reconciliations of the financial statements and the schedule of expenditures of federal awards. Effect: FCCH was unable to completely reconcile certain general ledger accounts timely, which resulted in the audit not being completed within the reporting deadline. Auditor’s Recommendations: FCCH should implement its approved policies and procedures and complete the year-end account reconciliations in a timely manner to ensure the timely completion of the audit and submission of the single audit reporting package. Management’s Response: FCCH leadership shall ensure accountability for completing audits and submitting reports in a timely manner. Now that vacant positions in the accounting department have been filled, reconciliations are being caught up as efficiently as possible so that delinquent audits can also be conducted and concluded. Furthermore, the FCCH Board of Directors is undergoing compliance training, and they shall also ensure accountability for completing audits in the future once the audits are caught up.
2022-006—Late Audit Report Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award number and year: All Criteria: According to 2 CFR Part 200.512, the annual single audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period (September 30, 2022). Condition: FCCH’s 2022 single audit reporting package was not submitted by the due date of September 30, 2023. Questioned Costs: None Context: N/A Cause: FCCH experienced turnover in the accounting department in key positions in recent years, which caused significant delays in completion of the year-end reconciliations of the financial statements and the schedule of expenditures of federal awards. Effect: FCCH was unable to completely reconcile certain general ledger accounts timely, which resulted in the audit not being completed within the reporting deadline. Auditor’s Recommendations: FCCH should implement its approved policies and procedures and complete the year-end account reconciliations in a timely manner to ensure the timely completion of the audit and submission of the single audit reporting package. Management’s Response: FCCH leadership shall ensure accountability for completing audits and submitting reports in a timely manner. Now that vacant positions in the accounting department have been filled, reconciliations are being caught up as efficiently as possible so that delinquent audits can also be conducted and concluded. Furthermore, the FCCH Board of Directors is undergoing compliance training, and they shall also ensure accountability for completing audits in the future once the audits are caught up.
2022-006—Late Audit Report Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award number and year: All Criteria: According to 2 CFR Part 200.512, the annual single audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period (September 30, 2022). Condition: FCCH’s 2022 single audit reporting package was not submitted by the due date of September 30, 2023. Questioned Costs: None Context: N/A Cause: FCCH experienced turnover in the accounting department in key positions in recent years, which caused significant delays in completion of the year-end reconciliations of the financial statements and the schedule of expenditures of federal awards. Effect: FCCH was unable to completely reconcile certain general ledger accounts timely, which resulted in the audit not being completed within the reporting deadline. Auditor’s Recommendations: FCCH should implement its approved policies and procedures and complete the year-end account reconciliations in a timely manner to ensure the timely completion of the audit and submission of the single audit reporting package. Management’s Response: FCCH leadership shall ensure accountability for completing audits and submitting reports in a timely manner. Now that vacant positions in the accounting department have been filled, reconciliations are being caught up as efficiently as possible so that delinquent audits can also be conducted and concluded. Furthermore, the FCCH Board of Directors is undergoing compliance training, and they shall also ensure accountability for completing audits in the future once the audits are caught up.
2022-006—Late Audit Report Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award number and year: All Criteria: According to 2 CFR Part 200.512, the annual single audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period (September 30, 2022). Condition: FCCH’s 2022 single audit reporting package was not submitted by the due date of September 30, 2023. Questioned Costs: None Context: N/A Cause: FCCH experienced turnover in the accounting department in key positions in recent years, which caused significant delays in completion of the year-end reconciliations of the financial statements and the schedule of expenditures of federal awards. Effect: FCCH was unable to completely reconcile certain general ledger accounts timely, which resulted in the audit not being completed within the reporting deadline. Auditor’s Recommendations: FCCH should implement its approved policies and procedures and complete the year-end account reconciliations in a timely manner to ensure the timely completion of the audit and submission of the single audit reporting package. Management’s Response: FCCH leadership shall ensure accountability for completing audits and submitting reports in a timely manner. Now that vacant positions in the accounting department have been filled, reconciliations are being caught up as efficiently as possible so that delinquent audits can also be conducted and concluded. Furthermore, the FCCH Board of Directors is undergoing compliance training, and they shall also ensure accountability for completing audits in the future once the audits are caught up.
2022-006—Late Audit Report Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award number and year: All Criteria: According to 2 CFR Part 200.512, the annual single audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period (September 30, 2022). Condition: FCCH’s 2022 single audit reporting package was not submitted by the due date of September 30, 2023. Questioned Costs: None Context: N/A Cause: FCCH experienced turnover in the accounting department in key positions in recent years, which caused significant delays in completion of the year-end reconciliations of the financial statements and the schedule of expenditures of federal awards. Effect: FCCH was unable to completely reconcile certain general ledger accounts timely, which resulted in the audit not being completed within the reporting deadline. Auditor’s Recommendations: FCCH should implement its approved policies and procedures and complete the year-end account reconciliations in a timely manner to ensure the timely completion of the audit and submission of the single audit reporting package. Management’s Response: FCCH leadership shall ensure accountability for completing audits and submitting reports in a timely manner. Now that vacant positions in the accounting department have been filled, reconciliations are being caught up as efficiently as possible so that delinquent audits can also be conducted and concluded. Furthermore, the FCCH Board of Directors is undergoing compliance training, and they shall also ensure accountability for completing audits in the future once the audits are caught up.
2022-006—Late Audit Report Federal program information: Funding agency: All Title: All Assistance Listing Number (ALN): All Award number and year: All Criteria: According to 2 CFR Part 200.512, the annual single audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period (September 30, 2022). Condition: FCCH’s 2022 single audit reporting package was not submitted by the due date of September 30, 2023. Questioned Costs: None Context: N/A Cause: FCCH experienced turnover in the accounting department in key positions in recent years, which caused significant delays in completion of the year-end reconciliations of the financial statements and the schedule of expenditures of federal awards. Effect: FCCH was unable to completely reconcile certain general ledger accounts timely, which resulted in the audit not being completed within the reporting deadline. Auditor’s Recommendations: FCCH should implement its approved policies and procedures and complete the year-end account reconciliations in a timely manner to ensure the timely completion of the audit and submission of the single audit reporting package. Management’s Response: FCCH leadership shall ensure accountability for completing audits and submitting reports in a timely manner. Now that vacant positions in the accounting department have been filled, reconciliations are being caught up as efficiently as possible so that delinquent audits can also be conducted and concluded. Furthermore, the FCCH Board of Directors is undergoing compliance training, and they shall also ensure accountability for completing audits in the future once the audits are caught up.