Audit 353175

FY End
2024-05-31
Total Expended
$4.12M
Findings
18
Programs
5
Year: 2024 Accepted: 2025-04-09
Auditor: Terry Horne CPA

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
554505 2024-004 Material Weakness Yes I
554506 2024-004 Material Weakness Yes I
554507 2024-004 Material Weakness Yes I
554508 2024-005 Material Weakness - B
554509 2024-005 Material Weakness - B
554510 2024-005 Material Weakness - B
554511 2024-006 Material Weakness - C
554512 2024-006 Material Weakness - C
554513 2024-006 Material Weakness - C
1130947 2024-004 Material Weakness Yes I
1130948 2024-004 Material Weakness Yes I
1130949 2024-004 Material Weakness Yes I
1130950 2024-005 Material Weakness - B
1130951 2024-005 Material Weakness - B
1130952 2024-005 Material Weakness - B
1130953 2024-006 Material Weakness - C
1130954 2024-006 Material Weakness - C
1130955 2024-006 Material Weakness - C

Contacts

Name Title Type
KQJ5UKZJ57M7 Delgado Cantave Auditee
8039006464 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: Loans Outstanding 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 Outstanding Loans Detailed

Finding Details

Finding: 2024-004 Procurement, Suspension and Debarment Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. 93.224 and 93.527 Criteria: Uniform Guidance, Procurement, Suspension, and Debarment Condition: The Organization did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them. Cause: The Organization did not follow its policy regarding debarment searches and did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs. Effect: The Organization did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them. Questioned Costs: None reported. Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: Yes Recommendation: It is recommended that the Organization establish procedures to ensure that the debarment policy is followed. Views of Responsible Officials: Management concurs. The Organization will establish procedures to ensure that debarment searches are completed to verify that employees and vendors subject to debarment requirements are not suspended, debarred, or otherwise excluded from participating in Federal programs before the Organization enters into transactions with them. Contact Person: Delgado Cantave, CEO Anticipated Date of Completion: May 31, 2025
Finding: 2024-004 Procurement, Suspension and Debarment Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. 93.224 and 93.527 Criteria: Uniform Guidance, Procurement, Suspension, and Debarment Condition: The Organization did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them. Cause: The Organization did not follow its policy regarding debarment searches and did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs. Effect: The Organization did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them. Questioned Costs: None reported. Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: Yes Recommendation: It is recommended that the Organization establish procedures to ensure that the debarment policy is followed. Views of Responsible Officials: Management concurs. The Organization will establish procedures to ensure that debarment searches are completed to verify that employees and vendors subject to debarment requirements are not suspended, debarred, or otherwise excluded from participating in Federal programs before the Organization enters into transactions with them. Contact Person: Delgado Cantave, CEO Anticipated Date of Completion: May 31, 2025
Finding: 2024-004 Procurement, Suspension and Debarment Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. 93.224 and 93.527 Criteria: Uniform Guidance, Procurement, Suspension, and Debarment Condition: The Organization did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them. Cause: The Organization did not follow its policy regarding debarment searches and did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs. Effect: The Organization did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them. Questioned Costs: None reported. Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: Yes Recommendation: It is recommended that the Organization establish procedures to ensure that the debarment policy is followed. Views of Responsible Officials: Management concurs. The Organization will establish procedures to ensure that debarment searches are completed to verify that employees and vendors subject to debarment requirements are not suspended, debarred, or otherwise excluded from participating in Federal programs before the Organization enters into transactions with them. Contact Person: Delgado Cantave, CEO Anticipated Date of Completion: May 31, 2025
Finding: 2024-005 Monthly Time/Activity Reports not Maintained for Salaried Employees Federal Program Identification: U.S. Department of Health and Human Services Health Center Program Cluster Assistance Listing No. 93.224 and 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. Cause: The Organization’s policy does not require that salaried employees 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: The Organization should evaluate and revise its policies to ensure that the policies require personnel to document time and efforts in accordance with federal cost principles. Procedures should subsequently be established to ensure that all salaried employees maintain time and effort reports in accordance with the revised policy. It is recommended that time and effort certifications be prepared no less than monthly and coincide with the Organization’s payroll cycle. Views of Responsible Officials: Policies and procedures will be established to ensure that salaried employees maintain time and effort reports that coincide with the Organization’s payroll cycle. Contact Person: Delgado Cantave, CEO Anticipated Date of Completion: May 31, 2025
Finding: 2024-005 Monthly Time/Activity Reports not Maintained for Salaried Employees Federal Program Identification: U.S. Department of Health and Human Services Health Center Program Cluster Assistance Listing No. 93.224 and 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. Cause: The Organization’s policy does not require that salaried employees 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: The Organization should evaluate and revise its policies to ensure that the policies require personnel to document time and efforts in accordance with federal cost principles. Procedures should subsequently be established to ensure that all salaried employees maintain time and effort reports in accordance with the revised policy. It is recommended that time and effort certifications be prepared no less than monthly and coincide with the Organization’s payroll cycle. Views of Responsible Officials: Policies and procedures will be established to ensure that salaried employees maintain time and effort reports that coincide with the Organization’s payroll cycle. Contact Person: Delgado Cantave, CEO Anticipated Date of Completion: May 31, 2025
Finding: 2024-005 Monthly Time/Activity Reports not Maintained for Salaried Employees Federal Program Identification: U.S. Department of Health and Human Services Health Center Program Cluster Assistance Listing No. 93.224 and 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. Cause: The Organization’s policy does not require that salaried employees 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: The Organization should evaluate and revise its policies to ensure that the policies require personnel to document time and efforts in accordance with federal cost principles. Procedures should subsequently be established to ensure that all salaried employees maintain time and effort reports in accordance with the revised policy. It is recommended that time and effort certifications be prepared no less than monthly and coincide with the Organization’s payroll cycle. Views of Responsible Officials: Policies and procedures will be established to ensure that salaried employees maintain time and effort reports that coincide with the Organization’s payroll cycle. Contact Person: Delgado Cantave, CEO Anticipated Date of Completion: May 31, 2025
Finding: 2024-006 Cash Management – Federal Grants Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. - 93.224 and 93.527 Criteria: Cash Management, 45 CFR 75.305 Condition: During the year, the Organization made several draws of federal funds for which expenditures were not documented at the time of the draw. The Organization is required to identify related expenditures prior to drawing funds from the U.S. Treasury. Cause: The Organization made draws of federal grant funds in advance of documenting the expenditures. Effect: The Organization could have held federal funds for time periods in excess of one business day. Questioned Costs: None reported. Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: The Organization should document qualifying expenditures prior to making the related draws of funds from the U.S. Treasury. Views of Responsible Officials: The Organization understands the requirements to document qualifying expenditures prior to drawing funds from the U.S. Treasury. Procedures will be established to document these expenditures prior to drawing funds from the U.S. Treasury to ensure that advance draws of federal funds do not occur. Contact Person: Delgado Cantave, CEO Anticipated Date of Completion: May 31, 2025
Finding: 2024-006 Cash Management – Federal Grants Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. - 93.224 and 93.527 Criteria: Cash Management, 45 CFR 75.305 Condition: During the year, the Organization made several draws of federal funds for which expenditures were not documented at the time of the draw. The Organization is required to identify related expenditures prior to drawing funds from the U.S. Treasury. Cause: The Organization made draws of federal grant funds in advance of documenting the expenditures. Effect: The Organization could have held federal funds for time periods in excess of one business day. Questioned Costs: None reported. Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: The Organization should document qualifying expenditures prior to making the related draws of funds from the U.S. Treasury. Views of Responsible Officials: The Organization understands the requirements to document qualifying expenditures prior to drawing funds from the U.S. Treasury. Procedures will be established to document these expenditures prior to drawing funds from the U.S. Treasury to ensure that advance draws of federal funds do not occur. Contact Person: Delgado Cantave, CEO Anticipated Date of Completion: May 31, 2025
Finding: 2024-006 Cash Management – Federal Grants Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. - 93.224 and 93.527 Criteria: Cash Management, 45 CFR 75.305 Condition: During the year, the Organization made several draws of federal funds for which expenditures were not documented at the time of the draw. The Organization is required to identify related expenditures prior to drawing funds from the U.S. Treasury. Cause: The Organization made draws of federal grant funds in advance of documenting the expenditures. Effect: The Organization could have held federal funds for time periods in excess of one business day. Questioned Costs: None reported. Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: The Organization should document qualifying expenditures prior to making the related draws of funds from the U.S. Treasury. Views of Responsible Officials: The Organization understands the requirements to document qualifying expenditures prior to drawing funds from the U.S. Treasury. Procedures will be established to document these expenditures prior to drawing funds from the U.S. Treasury to ensure that advance draws of federal funds do not occur. Contact Person: Delgado Cantave, CEO Anticipated Date of Completion: May 31, 2025
Finding: 2024-004 Procurement, Suspension and Debarment Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. 93.224 and 93.527 Criteria: Uniform Guidance, Procurement, Suspension, and Debarment Condition: The Organization did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them. Cause: The Organization did not follow its policy regarding debarment searches and did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs. Effect: The Organization did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them. Questioned Costs: None reported. Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: Yes Recommendation: It is recommended that the Organization establish procedures to ensure that the debarment policy is followed. Views of Responsible Officials: Management concurs. The Organization will establish procedures to ensure that debarment searches are completed to verify that employees and vendors subject to debarment requirements are not suspended, debarred, or otherwise excluded from participating in Federal programs before the Organization enters into transactions with them. Contact Person: Delgado Cantave, CEO Anticipated Date of Completion: May 31, 2025
Finding: 2024-004 Procurement, Suspension and Debarment Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. 93.224 and 93.527 Criteria: Uniform Guidance, Procurement, Suspension, and Debarment Condition: The Organization did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them. Cause: The Organization did not follow its policy regarding debarment searches and did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs. Effect: The Organization did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them. Questioned Costs: None reported. Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: Yes Recommendation: It is recommended that the Organization establish procedures to ensure that the debarment policy is followed. Views of Responsible Officials: Management concurs. The Organization will establish procedures to ensure that debarment searches are completed to verify that employees and vendors subject to debarment requirements are not suspended, debarred, or otherwise excluded from participating in Federal programs before the Organization enters into transactions with them. Contact Person: Delgado Cantave, CEO Anticipated Date of Completion: May 31, 2025
Finding: 2024-004 Procurement, Suspension and Debarment Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. 93.224 and 93.527 Criteria: Uniform Guidance, Procurement, Suspension, and Debarment Condition: The Organization did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them. Cause: The Organization did not follow its policy regarding debarment searches and did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs. Effect: The Organization did not verify that certain employees and vendors were not suspended, debarred, or otherwise excluded from participating in federal programs before entering into transactions with them. Questioned Costs: None reported. Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: Yes Recommendation: It is recommended that the Organization establish procedures to ensure that the debarment policy is followed. Views of Responsible Officials: Management concurs. The Organization will establish procedures to ensure that debarment searches are completed to verify that employees and vendors subject to debarment requirements are not suspended, debarred, or otherwise excluded from participating in Federal programs before the Organization enters into transactions with them. Contact Person: Delgado Cantave, CEO Anticipated Date of Completion: May 31, 2025
Finding: 2024-005 Monthly Time/Activity Reports not Maintained for Salaried Employees Federal Program Identification: U.S. Department of Health and Human Services Health Center Program Cluster Assistance Listing No. 93.224 and 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. Cause: The Organization’s policy does not require that salaried employees 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: The Organization should evaluate and revise its policies to ensure that the policies require personnel to document time and efforts in accordance with federal cost principles. Procedures should subsequently be established to ensure that all salaried employees maintain time and effort reports in accordance with the revised policy. It is recommended that time and effort certifications be prepared no less than monthly and coincide with the Organization’s payroll cycle. Views of Responsible Officials: Policies and procedures will be established to ensure that salaried employees maintain time and effort reports that coincide with the Organization’s payroll cycle. Contact Person: Delgado Cantave, CEO Anticipated Date of Completion: May 31, 2025
Finding: 2024-005 Monthly Time/Activity Reports not Maintained for Salaried Employees Federal Program Identification: U.S. Department of Health and Human Services Health Center Program Cluster Assistance Listing No. 93.224 and 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. Cause: The Organization’s policy does not require that salaried employees 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: The Organization should evaluate and revise its policies to ensure that the policies require personnel to document time and efforts in accordance with federal cost principles. Procedures should subsequently be established to ensure that all salaried employees maintain time and effort reports in accordance with the revised policy. It is recommended that time and effort certifications be prepared no less than monthly and coincide with the Organization’s payroll cycle. Views of Responsible Officials: Policies and procedures will be established to ensure that salaried employees maintain time and effort reports that coincide with the Organization’s payroll cycle. Contact Person: Delgado Cantave, CEO Anticipated Date of Completion: May 31, 2025
Finding: 2024-005 Monthly Time/Activity Reports not Maintained for Salaried Employees Federal Program Identification: U.S. Department of Health and Human Services Health Center Program Cluster Assistance Listing No. 93.224 and 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. Cause: The Organization’s policy does not require that salaried employees 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: The Organization should evaluate and revise its policies to ensure that the policies require personnel to document time and efforts in accordance with federal cost principles. Procedures should subsequently be established to ensure that all salaried employees maintain time and effort reports in accordance with the revised policy. It is recommended that time and effort certifications be prepared no less than monthly and coincide with the Organization’s payroll cycle. Views of Responsible Officials: Policies and procedures will be established to ensure that salaried employees maintain time and effort reports that coincide with the Organization’s payroll cycle. Contact Person: Delgado Cantave, CEO Anticipated Date of Completion: May 31, 2025
Finding: 2024-006 Cash Management – Federal Grants Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. - 93.224 and 93.527 Criteria: Cash Management, 45 CFR 75.305 Condition: During the year, the Organization made several draws of federal funds for which expenditures were not documented at the time of the draw. The Organization is required to identify related expenditures prior to drawing funds from the U.S. Treasury. Cause: The Organization made draws of federal grant funds in advance of documenting the expenditures. Effect: The Organization could have held federal funds for time periods in excess of one business day. Questioned Costs: None reported. Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: The Organization should document qualifying expenditures prior to making the related draws of funds from the U.S. Treasury. Views of Responsible Officials: The Organization understands the requirements to document qualifying expenditures prior to drawing funds from the U.S. Treasury. Procedures will be established to document these expenditures prior to drawing funds from the U.S. Treasury to ensure that advance draws of federal funds do not occur. Contact Person: Delgado Cantave, CEO Anticipated Date of Completion: May 31, 2025
Finding: 2024-006 Cash Management – Federal Grants Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. - 93.224 and 93.527 Criteria: Cash Management, 45 CFR 75.305 Condition: During the year, the Organization made several draws of federal funds for which expenditures were not documented at the time of the draw. The Organization is required to identify related expenditures prior to drawing funds from the U.S. Treasury. Cause: The Organization made draws of federal grant funds in advance of documenting the expenditures. Effect: The Organization could have held federal funds for time periods in excess of one business day. Questioned Costs: None reported. Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: The Organization should document qualifying expenditures prior to making the related draws of funds from the U.S. Treasury. Views of Responsible Officials: The Organization understands the requirements to document qualifying expenditures prior to drawing funds from the U.S. Treasury. Procedures will be established to document these expenditures prior to drawing funds from the U.S. Treasury to ensure that advance draws of federal funds do not occur. Contact Person: Delgado Cantave, CEO Anticipated Date of Completion: May 31, 2025
Finding: 2024-006 Cash Management – Federal Grants Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. - 93.224 and 93.527 Criteria: Cash Management, 45 CFR 75.305 Condition: During the year, the Organization made several draws of federal funds for which expenditures were not documented at the time of the draw. The Organization is required to identify related expenditures prior to drawing funds from the U.S. Treasury. Cause: The Organization made draws of federal grant funds in advance of documenting the expenditures. Effect: The Organization could have held federal funds for time periods in excess of one business day. Questioned Costs: None reported. Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: The Organization should document qualifying expenditures prior to making the related draws of funds from the U.S. Treasury. Views of Responsible Officials: The Organization understands the requirements to document qualifying expenditures prior to drawing funds from the U.S. Treasury. Procedures will be established to document these expenditures prior to drawing funds from the U.S. Treasury to ensure that advance draws of federal funds do not occur. Contact Person: Delgado Cantave, CEO Anticipated Date of Completion: May 31, 2025