FAC Explorer

Audit 350104

FY End
2023-06-30
Total Expended
$3.40M
Findings
8
Programs
8
Organization: Community Health Centers of Arkansas, Inc. (AR)
Year: 2023 Accepted: 2025-03-28
Auditor: Forvis Mazars LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
539555 2023-004 Material Weakness - I
539556 2023-004 Material Weakness - I
539557 2023-005 Material Weakness - I
539558 2023-005 Material Weakness - I
1115997 2023-004 Material Weakness - I
1115998 2023-004 Material Weakness - I
1115999 2023-005 Material Weakness - I
1116000 2023-005 Material Weakness - I

Programs

ALN Program Spent Major Findings
93.129 Technical and Non-Financial Assistance to Health Centers $1.49M - 0
93.011 National Organizations for State and Local Officials $1.11M Yes 0
93.527 Grants for New and Expanded Services Under the Health Center Program $595,450 Yes 2
93.527 Covid-19 Grants for New and Expanded Services Under the Health Center Program $100,523 Yes 2
93.136 Injury Prevention and Control Research and State and Community Based Programs $52,464 - 0
10.874 Delta Health Care Services Grant Program $23,342 - 0
93.129 Covid-19 Technical and Non-Financial Assistance to Health Centers $14,310 - 0
93.680 Medical Student Education $13,600 - 0

Contacts

Name Title Type
NJLFVN2H9DR1 Lanita White Auditee
5013748225 Phang Soundara Auditor
No contacts on file

Notes to SEFA

Title: Basis of 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. De Minimis Rate Used: N Rate Explanation: Community Health Centers of Arkansas, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Community Health Centers of Arkansas, Inc. under programs of the federal government for the year ended June 30, 2023. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations 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 Community Health Centers of Arkansas, Inc., it is not intended to, and does not present the financial position, changes in net assets, or cash flows of Community Health Centers of Arkansas, Inc.
Title: Restatement 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. De Minimis Rate Used: N Rate Explanation: Community Health Centers of Arkansas, Inc. has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Schedule has been restated due to the identification of expenditures under Assistance Listing Number (ALN) 93.527, Grants for New and Expanded Services under the Health Center. Additionally, additional identification of expenditures under ALN 93.129, Technical and Non-Financial Assistance to Health Centers was added to the schedule. Changes from the previously issued Schedule include an increase in federal expenditures reported under Grants for New and Expanded Services under the Health Center Program from $315,810 to $595,450; COVID-19 Grants for New and Expanded Services under the Health Center Program from $43,538 to $100,523; Total Health Center Program Cluster from $359,348 to $695,973; Technical and Non-Financial Assistance to Health Centers from $684,353 to $1,489,178 and COVID-19 Technical and Non-Financial Assistance to Health Centers from $0 to $14,310. Total federal awards expended increased from $2,239,792 to $3,395,552.

Finding Details

Finding 2023-004
Federal Agency: United States Department of Health and Human Services Federal Program: Grants for New and Expanded Services under the Health Center Program Federal Assistance Listing Number 93.527 Federal Award Year: 2022-2023 Criteria or specific requirement – Suspension and debarment (2 CFR 180) Nonfederal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended, debarred, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Condition – The Organization was unable to provide evidence vendors used in covered transactions were not suspended, debarred, or otherwise excluded. Cause – The Organization did not have adequate controls and procedures in place relating to suspension and debarment requirements under the Uniform Guidance. Effect or Potential Effect – We were unable to determine whether the Organization complied with the compliance requirement. The Organization may enter into covered transactions with vendors who have become suspended, debarred, or otherwise excluded. Questioned Costs – None Context – The Organization was unable to provide a detailed expenditure listing by vendor to test compliance with suspension and debarment. Identification as a Repeat Finding– Not a repeat finding. Recommendation – The Organization should incorporate internal controls over compliance with the suspension and debarment compliance requirement, including monitoring vendors against the exclusions list. Views of Responsible Officials and Planned Corrective Actions – Management acknowledges the audit finding related to suspension and debarment compliance under Federal Program: Grant for New and Expanded Services under the Health Center Program (Federal Assistance Listing Number 93.527; Federal Award Year 2022-2023). We are committed to implementing corrective measures to address the identified deficiencies and ensure full compliance with 2 CFR 180 regulations. Corrective Actions Taken: 1. Established & Implemented Suspension & Debarment Verification Procedures: - A new accounting system with a centralized procurement tracking system has been implemented and is currently being used. Bill.com is used to record vendor information including Sam.gov vendor eligibility documentation. - All vendors are verified using Sam.gov. and documentation is kept in the electronic vendor file in Bill.com. This process was implemented in March 2024 and is ongoing. 2. Monitoring - The Finance team conducts annual self-assessments to ensure vendor eligibility documentation is current and up to date. Any vendors that are suspended, debarred, or otherwise excluded from federal assistance programs are reported to the Executive team to ensure compliance. We believe that these actions will significantly mitigate the risks associated with the identified conditions and strengthen our internal control environment and align our practices with federal regulations.
Finding 2023-004
Federal Agency: United States Department of Health and Human Services Federal Program: Grants for New and Expanded Services under the Health Center Program Federal Assistance Listing Number 93.527 Federal Award Year: 2022-2023 Criteria or specific requirement – Suspension and debarment (2 CFR 180) Nonfederal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended, debarred, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Condition – The Organization was unable to provide evidence vendors used in covered transactions were not suspended, debarred, or otherwise excluded. Cause – The Organization did not have adequate controls and procedures in place relating to suspension and debarment requirements under the Uniform Guidance. Effect or Potential Effect – We were unable to determine whether the Organization complied with the compliance requirement. The Organization may enter into covered transactions with vendors who have become suspended, debarred, or otherwise excluded. Questioned Costs – None Context – The Organization was unable to provide a detailed expenditure listing by vendor to test compliance with suspension and debarment. Identification as a Repeat Finding– Not a repeat finding. Recommendation – The Organization should incorporate internal controls over compliance with the suspension and debarment compliance requirement, including monitoring vendors against the exclusions list. Views of Responsible Officials and Planned Corrective Actions – Management acknowledges the audit finding related to suspension and debarment compliance under Federal Program: Grant for New and Expanded Services under the Health Center Program (Federal Assistance Listing Number 93.527; Federal Award Year 2022-2023). We are committed to implementing corrective measures to address the identified deficiencies and ensure full compliance with 2 CFR 180 regulations. Corrective Actions Taken: 1. Established & Implemented Suspension & Debarment Verification Procedures: - A new accounting system with a centralized procurement tracking system has been implemented and is currently being used. Bill.com is used to record vendor information including Sam.gov vendor eligibility documentation. - All vendors are verified using Sam.gov. and documentation is kept in the electronic vendor file in Bill.com. This process was implemented in March 2024 and is ongoing. 2. Monitoring - The Finance team conducts annual self-assessments to ensure vendor eligibility documentation is current and up to date. Any vendors that are suspended, debarred, or otherwise excluded from federal assistance programs are reported to the Executive team to ensure compliance. We believe that these actions will significantly mitigate the risks associated with the identified conditions and strengthen our internal control environment and align our practices with federal regulations.
Finding 2023-005
Federal Agency: United States Department of Health and Human Services Federal Program: Grant for New and Expanded Services under the Health Center Program Federal Assistance Listing Number 93.527 Federal Award Year: 2022-2023 Criteria or specific requirement – Procurement (2 CFR 200.318) The recipient or subrecipient must maintain and use documented procedures for procurement transactions under a Federal award or subaward, including for acquisition of property or services. Condition – The Organization was unable to provide evidence it was in compliance with its procurement policy. Records sufficient to detail the history of procurement including the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price were not retained. Cause – The Organization did not have adequate controls and procedures in place relating to procurement under the Uniform Guidance. Effect or Potential Effect – The Organization could not support that it complied with its procurement policy as required records were not maintained. Purchases of goods or services were made that may not have been obtained in the most effective manner or in compliance with Uniform Guidance. Questioned Costs – None Context – The Organization does not have appropriate controls in place to ensure procurement procedures are being appropriately documented and that its policies are compliant with the Uniform Guidance. Four of 22 purchases over $5,000 were selected for testing, and documentation was not maintained to support that procurement procedures were followed. The sampling methodology used is not, and is not intended to be, statistically valid. Identification as a Repeat Finding– Not a repeat finding. Recommendation – The Organization should incorporate internal controls over compliance with the procurement compliance requirement, including reviewing its procurement policy for compliance with Uniform Guidanc including documentation requirements and record retention policies. Views of Responsible Officials and Planned Corrective Actions – Management acknowledges the audit finding related to procurement compliance under Federal Program Grant for New and Expanded Services under the Health Center Program (Federal Assistance Listing Number 93.527; Federal Award Year 2022-2023). We are committed to implementing corrective measures to address the identified deficiencies and ensure full compliance with 2 CFR 200.318 regulations. Corrective Actions Taken: 1. Established & Implemented Detailed Record-Keeping for Procurement Transactions: - A new accounting system with a centralized procurement tracking system has been implemented and is currently being used. Bill.com is used to record vendor invoices and procurement transactions in real time and syncs with Sage Intacct, the new accounting software implemented in January 2024. - Detailed records of all federal grant expenditures are maintained in Bill.com and monthly reconciliations are conducted in the general ledger to ensure all procurement transactions are properly classified to their specific grant by their grant ID. We believe that these actions will significantly mitigate the risks associated with the identified conditions and strengthen our internal control environment and align our practices with federal regulations.
Finding 2023-005
Federal Agency: United States Department of Health and Human Services Federal Program: Grant for New and Expanded Services under the Health Center Program Federal Assistance Listing Number 93.527 Federal Award Year: 2022-2023 Criteria or specific requirement – Procurement (2 CFR 200.318) The recipient or subrecipient must maintain and use documented procedures for procurement transactions under a Federal award or subaward, including for acquisition of property or services. Condition – The Organization was unable to provide evidence it was in compliance with its procurement policy. Records sufficient to detail the history of procurement including the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price were not retained. Cause – The Organization did not have adequate controls and procedures in place relating to procurement under the Uniform Guidance. Effect or Potential Effect – The Organization could not support that it complied with its procurement policy as required records were not maintained. Purchases of goods or services were made that may not have been obtained in the most effective manner or in compliance with Uniform Guidance. Questioned Costs – None Context – The Organization does not have appropriate controls in place to ensure procurement procedures are being appropriately documented and that its policies are compliant with the Uniform Guidance. Four of 22 purchases over $5,000 were selected for testing, and documentation was not maintained to support that procurement procedures were followed. The sampling methodology used is not, and is not intended to be, statistically valid. Identification as a Repeat Finding– Not a repeat finding. Recommendation – The Organization should incorporate internal controls over compliance with the procurement compliance requirement, including reviewing its procurement policy for compliance with Uniform Guidanc including documentation requirements and record retention policies. Views of Responsible Officials and Planned Corrective Actions – Management acknowledges the audit finding related to procurement compliance under Federal Program Grant for New and Expanded Services under the Health Center Program (Federal Assistance Listing Number 93.527; Federal Award Year 2022-2023). We are committed to implementing corrective measures to address the identified deficiencies and ensure full compliance with 2 CFR 200.318 regulations. Corrective Actions Taken: 1. Established & Implemented Detailed Record-Keeping for Procurement Transactions: - A new accounting system with a centralized procurement tracking system has been implemented and is currently being used. Bill.com is used to record vendor invoices and procurement transactions in real time and syncs with Sage Intacct, the new accounting software implemented in January 2024. - Detailed records of all federal grant expenditures are maintained in Bill.com and monthly reconciliations are conducted in the general ledger to ensure all procurement transactions are properly classified to their specific grant by their grant ID. We believe that these actions will significantly mitigate the risks associated with the identified conditions and strengthen our internal control environment and align our practices with federal regulations.
Finding 2023-004
Federal Agency: United States Department of Health and Human Services Federal Program: Grants for New and Expanded Services under the Health Center Program Federal Assistance Listing Number 93.527 Federal Award Year: 2022-2023 Criteria or specific requirement – Suspension and debarment (2 CFR 180) Nonfederal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended, debarred, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Condition – The Organization was unable to provide evidence vendors used in covered transactions were not suspended, debarred, or otherwise excluded. Cause – The Organization did not have adequate controls and procedures in place relating to suspension and debarment requirements under the Uniform Guidance. Effect or Potential Effect – We were unable to determine whether the Organization complied with the compliance requirement. The Organization may enter into covered transactions with vendors who have become suspended, debarred, or otherwise excluded. Questioned Costs – None Context – The Organization was unable to provide a detailed expenditure listing by vendor to test compliance with suspension and debarment. Identification as a Repeat Finding– Not a repeat finding. Recommendation – The Organization should incorporate internal controls over compliance with the suspension and debarment compliance requirement, including monitoring vendors against the exclusions list. Views of Responsible Officials and Planned Corrective Actions – Management acknowledges the audit finding related to suspension and debarment compliance under Federal Program: Grant for New and Expanded Services under the Health Center Program (Federal Assistance Listing Number 93.527; Federal Award Year 2022-2023). We are committed to implementing corrective measures to address the identified deficiencies and ensure full compliance with 2 CFR 180 regulations. Corrective Actions Taken: 1. Established & Implemented Suspension & Debarment Verification Procedures: - A new accounting system with a centralized procurement tracking system has been implemented and is currently being used. Bill.com is used to record vendor information including Sam.gov vendor eligibility documentation. - All vendors are verified using Sam.gov. and documentation is kept in the electronic vendor file in Bill.com. This process was implemented in March 2024 and is ongoing. 2. Monitoring - The Finance team conducts annual self-assessments to ensure vendor eligibility documentation is current and up to date. Any vendors that are suspended, debarred, or otherwise excluded from federal assistance programs are reported to the Executive team to ensure compliance. We believe that these actions will significantly mitigate the risks associated with the identified conditions and strengthen our internal control environment and align our practices with federal regulations.
Finding 2023-004
Federal Agency: United States Department of Health and Human Services Federal Program: Grants for New and Expanded Services under the Health Center Program Federal Assistance Listing Number 93.527 Federal Award Year: 2022-2023 Criteria or specific requirement – Suspension and debarment (2 CFR 180) Nonfederal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended, debarred, or otherwise excluded from or ineligible for participation in federal assistance programs or activities. Condition – The Organization was unable to provide evidence vendors used in covered transactions were not suspended, debarred, or otherwise excluded. Cause – The Organization did not have adequate controls and procedures in place relating to suspension and debarment requirements under the Uniform Guidance. Effect or Potential Effect – We were unable to determine whether the Organization complied with the compliance requirement. The Organization may enter into covered transactions with vendors who have become suspended, debarred, or otherwise excluded. Questioned Costs – None Context – The Organization was unable to provide a detailed expenditure listing by vendor to test compliance with suspension and debarment. Identification as a Repeat Finding– Not a repeat finding. Recommendation – The Organization should incorporate internal controls over compliance with the suspension and debarment compliance requirement, including monitoring vendors against the exclusions list. Views of Responsible Officials and Planned Corrective Actions – Management acknowledges the audit finding related to suspension and debarment compliance under Federal Program: Grant for New and Expanded Services under the Health Center Program (Federal Assistance Listing Number 93.527; Federal Award Year 2022-2023). We are committed to implementing corrective measures to address the identified deficiencies and ensure full compliance with 2 CFR 180 regulations. Corrective Actions Taken: 1. Established & Implemented Suspension & Debarment Verification Procedures: - A new accounting system with a centralized procurement tracking system has been implemented and is currently being used. Bill.com is used to record vendor information including Sam.gov vendor eligibility documentation. - All vendors are verified using Sam.gov. and documentation is kept in the electronic vendor file in Bill.com. This process was implemented in March 2024 and is ongoing. 2. Monitoring - The Finance team conducts annual self-assessments to ensure vendor eligibility documentation is current and up to date. Any vendors that are suspended, debarred, or otherwise excluded from federal assistance programs are reported to the Executive team to ensure compliance. We believe that these actions will significantly mitigate the risks associated with the identified conditions and strengthen our internal control environment and align our practices with federal regulations.
Finding 2023-005
Federal Agency: United States Department of Health and Human Services Federal Program: Grant for New and Expanded Services under the Health Center Program Federal Assistance Listing Number 93.527 Federal Award Year: 2022-2023 Criteria or specific requirement – Procurement (2 CFR 200.318) The recipient or subrecipient must maintain and use documented procedures for procurement transactions under a Federal award or subaward, including for acquisition of property or services. Condition – The Organization was unable to provide evidence it was in compliance with its procurement policy. Records sufficient to detail the history of procurement including the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price were not retained. Cause – The Organization did not have adequate controls and procedures in place relating to procurement under the Uniform Guidance. Effect or Potential Effect – The Organization could not support that it complied with its procurement policy as required records were not maintained. Purchases of goods or services were made that may not have been obtained in the most effective manner or in compliance with Uniform Guidance. Questioned Costs – None Context – The Organization does not have appropriate controls in place to ensure procurement procedures are being appropriately documented and that its policies are compliant with the Uniform Guidance. Four of 22 purchases over $5,000 were selected for testing, and documentation was not maintained to support that procurement procedures were followed. The sampling methodology used is not, and is not intended to be, statistically valid. Identification as a Repeat Finding– Not a repeat finding. Recommendation – The Organization should incorporate internal controls over compliance with the procurement compliance requirement, including reviewing its procurement policy for compliance with Uniform Guidanc including documentation requirements and record retention policies. Views of Responsible Officials and Planned Corrective Actions – Management acknowledges the audit finding related to procurement compliance under Federal Program Grant for New and Expanded Services under the Health Center Program (Federal Assistance Listing Number 93.527; Federal Award Year 2022-2023). We are committed to implementing corrective measures to address the identified deficiencies and ensure full compliance with 2 CFR 200.318 regulations. Corrective Actions Taken: 1. Established & Implemented Detailed Record-Keeping for Procurement Transactions: - A new accounting system with a centralized procurement tracking system has been implemented and is currently being used. Bill.com is used to record vendor invoices and procurement transactions in real time and syncs with Sage Intacct, the new accounting software implemented in January 2024. - Detailed records of all federal grant expenditures are maintained in Bill.com and monthly reconciliations are conducted in the general ledger to ensure all procurement transactions are properly classified to their specific grant by their grant ID. We believe that these actions will significantly mitigate the risks associated with the identified conditions and strengthen our internal control environment and align our practices with federal regulations.
Finding 2023-005
Federal Agency: United States Department of Health and Human Services Federal Program: Grant for New and Expanded Services under the Health Center Program Federal Assistance Listing Number 93.527 Federal Award Year: 2022-2023 Criteria or specific requirement – Procurement (2 CFR 200.318) The recipient or subrecipient must maintain and use documented procedures for procurement transactions under a Federal award or subaward, including for acquisition of property or services. Condition – The Organization was unable to provide evidence it was in compliance with its procurement policy. Records sufficient to detail the history of procurement including the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price were not retained. Cause – The Organization did not have adequate controls and procedures in place relating to procurement under the Uniform Guidance. Effect or Potential Effect – The Organization could not support that it complied with its procurement policy as required records were not maintained. Purchases of goods or services were made that may not have been obtained in the most effective manner or in compliance with Uniform Guidance. Questioned Costs – None Context – The Organization does not have appropriate controls in place to ensure procurement procedures are being appropriately documented and that its policies are compliant with the Uniform Guidance. Four of 22 purchases over $5,000 were selected for testing, and documentation was not maintained to support that procurement procedures were followed. The sampling methodology used is not, and is not intended to be, statistically valid. Identification as a Repeat Finding– Not a repeat finding. Recommendation – The Organization should incorporate internal controls over compliance with the procurement compliance requirement, including reviewing its procurement policy for compliance with Uniform Guidanc including documentation requirements and record retention policies. Views of Responsible Officials and Planned Corrective Actions – Management acknowledges the audit finding related to procurement compliance under Federal Program Grant for New and Expanded Services under the Health Center Program (Federal Assistance Listing Number 93.527; Federal Award Year 2022-2023). We are committed to implementing corrective measures to address the identified deficiencies and ensure full compliance with 2 CFR 200.318 regulations. Corrective Actions Taken: 1. Established & Implemented Detailed Record-Keeping for Procurement Transactions: - A new accounting system with a centralized procurement tracking system has been implemented and is currently being used. Bill.com is used to record vendor invoices and procurement transactions in real time and syncs with Sage Intacct, the new accounting software implemented in January 2024. - Detailed records of all federal grant expenditures are maintained in Bill.com and monthly reconciliations are conducted in the general ledger to ensure all procurement transactions are properly classified to their specific grant by their grant ID. We believe that these actions will significantly mitigate the risks associated with the identified conditions and strengthen our internal control environment and align our practices with federal regulations.