Audit 364763

FY End
2021-12-31
Total Expended
$3.52M
Findings
96
Programs
2

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
574199 2021-001 Material Weakness - C
574200 2021-002 Material Weakness - C
574201 2021-003 Significant Deficiency - B
574202 2021-004 Material Weakness - C
574203 2021-005 Significant Deficiency - C
574204 2021-006 Significant Deficiency - L
574205 2021-007 Significant Deficiency - L
574206 2021-008 Significant Deficiency - L
574207 2021-009 Material Weakness - A
574208 2021-010 Material Weakness - B
574209 2021-011 Material Weakness - I
574210 2021-012 Material Weakness - I
574211 2021-013 Material Weakness - C
574212 2021-014 Material Weakness - H
574213 2021-015 Material Weakness - C
574214 2021-016 Material Weakness - N
574215 2021-001 Material Weakness - C
574216 2021-002 Material Weakness - C
574217 2021-003 Significant Deficiency - B
574218 2021-004 Material Weakness - C
574219 2021-005 Significant Deficiency - C
574220 2021-006 Significant Deficiency - L
574221 2021-007 Significant Deficiency - L
574222 2021-008 Significant Deficiency - L
574223 2021-009 Material Weakness - A
574224 2021-010 Material Weakness - B
574225 2021-011 Material Weakness - I
574226 2021-012 Material Weakness - I
574227 2021-013 Material Weakness - C
574228 2021-014 Material Weakness - H
574229 2021-015 Material Weakness - C
574230 2021-016 Material Weakness - N
574231 2021-001 Material Weakness - C
574232 2021-002 Material Weakness - C
574233 2021-003 Significant Deficiency - B
574234 2021-004 Material Weakness - C
574235 2021-005 Significant Deficiency - C
574236 2021-006 Significant Deficiency - L
574237 2021-007 Significant Deficiency - L
574238 2021-008 Significant Deficiency - L
574239 2021-009 Material Weakness - A
574240 2021-010 Material Weakness - B
574241 2021-011 Material Weakness - I
574242 2021-012 Material Weakness - I
574243 2021-013 Material Weakness - C
574244 2021-014 Material Weakness - H
574245 2021-015 Material Weakness - C
574246 2021-016 Material Weakness - N
1150641 2021-001 Material Weakness - C
1150642 2021-002 Material Weakness - C
1150643 2021-003 Significant Deficiency - B
1150644 2021-004 Material Weakness - C
1150645 2021-005 Significant Deficiency - C
1150646 2021-006 Significant Deficiency - L
1150647 2021-007 Significant Deficiency - L
1150648 2021-008 Significant Deficiency - L
1150649 2021-009 Material Weakness - A
1150650 2021-010 Material Weakness - B
1150651 2021-011 Material Weakness - I
1150652 2021-012 Material Weakness - I
1150653 2021-013 Material Weakness - C
1150654 2021-014 Material Weakness - H
1150655 2021-015 Material Weakness - C
1150656 2021-016 Material Weakness - N
1150657 2021-001 Material Weakness - C
1150658 2021-002 Material Weakness - C
1150659 2021-003 Significant Deficiency - B
1150660 2021-004 Material Weakness - C
1150661 2021-005 Significant Deficiency - C
1150662 2021-006 Significant Deficiency - L
1150663 2021-007 Significant Deficiency - L
1150664 2021-008 Significant Deficiency - L
1150665 2021-009 Material Weakness - A
1150666 2021-010 Material Weakness - B
1150667 2021-011 Material Weakness - I
1150668 2021-012 Material Weakness - I
1150669 2021-013 Material Weakness - C
1150670 2021-014 Material Weakness - H
1150671 2021-015 Material Weakness - C
1150672 2021-016 Material Weakness - N
1150673 2021-001 Material Weakness - C
1150674 2021-002 Material Weakness - C
1150675 2021-003 Significant Deficiency - B
1150676 2021-004 Material Weakness - C
1150677 2021-005 Significant Deficiency - C
1150678 2021-006 Significant Deficiency - L
1150679 2021-007 Significant Deficiency - L
1150680 2021-008 Significant Deficiency - L
1150681 2021-009 Material Weakness - A
1150682 2021-010 Material Weakness - B
1150683 2021-011 Material Weakness - I
1150684 2021-012 Material Weakness - I
1150685 2021-013 Material Weakness - C
1150686 2021-014 Material Weakness - H
1150687 2021-015 Material Weakness - C
1150688 2021-016 Material Weakness - N

Contacts

Name Title Type
MHVVQRBAD4P3 Frannie Watts Auditee
4057561414 Allen Bryant, C.p.a. Auditor
No contacts on file

Notes to SEFA

Title: Note 1: 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. The organization has elected not to use the 10-percent de minimis direct cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: N/A The accompanying schedule of expenditures of federal awards includes the federal grant expenditures of South Central Medical and Resouce Center, Inc. for the year ended December 31, 2021. 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 Requirement, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements.
Title: Note 2: Summary of Significant Accounting Policies 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 Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. The organization has elected not to use the 10-percent de minimis direct cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: N/A Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement.The organization has elected not to use the 10-percent de minimis direct cost rate as allowed under the Uniform Guidance.
Title: Note 3: Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. The organization has elected not to use the 10-percent de minimis direct cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: N/A No amounts were passed through to a sub recipient.

Finding Details

We recommend that South Central Medical and Resource Center, Inc. implement formal procedures requiring the preparation and review of bank reconciliations for all cash accounts within 30 days of month-end. Staff should be trained on these procedures, and reconciliations should be reviewed and approved by management including the board of directors or finance committee to ensure accuracy and accountability.
We recommend that the organization implement written accounting procedures that include maintaining an accounts receivable subsidiary ledger and reconciling it to the general ledger on a monthly basis. Staff responsible for accounts receivable should be trained to perform and document these reconciliations.
5. Proper documentation retained to support the inventory process.
·         Consider enhancing internal control documentation (e.g., procedures checklist) similar to those recommended in nonprofit accounting guides.
Provide training to finance staff on best practices in cash management for non-profits.
Explore contracting with a financial statement audit support service provider to assist with internal preparation for audit readiness.
Consider engaging an external consultant or CPA firm experienced in healthcare compliance to assist with cost report preparation and filing procedures in future periods.
Monitor and review compliance with policies quarterly through finance department reports, escalating oversight to the board’s finance or compliance committee as needed.
4. Conduct quarterly internal audits of provider files and encounter data to ensure ongoing compliance.
Provide staff training on revised policy and internal control expectations, and issue a memo reinforcing accountability
5. Conduct quarterly internal procurement audits; track corrective actions.
5. Conduct quarterly compliance testing of procurement files to verify inclusion of exclusion checks.
1. Provide staff training on proper cash management and documentation standards under 2 CFR § 200.305.
6. Institute periodic internal audit or monitoring reviews of grant timelines and period-of-performance compliance.
5. Provide training for financial and program staff on federal budget monitoring requirements.
6. Provide staff training on SFDP compliance standards, documentation expectations, and policy implementation.
We recommend that South Central Medical and Resource Center, Inc. implement formal procedures requiring the preparation and review of bank reconciliations for all cash accounts within 30 days of month-end. Staff should be trained on these procedures, and reconciliations should be reviewed and approved by management including the board of directors or finance committee to ensure accuracy and accountability.
We recommend that the organization implement written accounting procedures that include maintaining an accounts receivable subsidiary ledger and reconciling it to the general ledger on a monthly basis. Staff responsible for accounts receivable should be trained to perform and document these reconciliations.
5. Proper documentation retained to support the inventory process.
·         Consider enhancing internal control documentation (e.g., procedures checklist) similar to those recommended in nonprofit accounting guides.
Provide training to finance staff on best practices in cash management for non-profits.
Explore contracting with a financial statement audit support service provider to assist with internal preparation for audit readiness.
Consider engaging an external consultant or CPA firm experienced in healthcare compliance to assist with cost report preparation and filing procedures in future periods.
Monitor and review compliance with policies quarterly through finance department reports, escalating oversight to the board’s finance or compliance committee as needed.
4. Conduct quarterly internal audits of provider files and encounter data to ensure ongoing compliance.
Provide staff training on revised policy and internal control expectations, and issue a memo reinforcing accountability
5. Conduct quarterly internal procurement audits; track corrective actions.
5. Conduct quarterly compliance testing of procurement files to verify inclusion of exclusion checks.
1. Provide staff training on proper cash management and documentation standards under 2 CFR § 200.305.
6. Institute periodic internal audit or monitoring reviews of grant timelines and period-of-performance compliance.
5. Provide training for financial and program staff on federal budget monitoring requirements.
6. Provide staff training on SFDP compliance standards, documentation expectations, and policy implementation.
We recommend that South Central Medical and Resource Center, Inc. implement formal procedures requiring the preparation and review of bank reconciliations for all cash accounts within 30 days of month-end. Staff should be trained on these procedures, and reconciliations should be reviewed and approved by management including the board of directors or finance committee to ensure accuracy and accountability.
We recommend that the organization implement written accounting procedures that include maintaining an accounts receivable subsidiary ledger and reconciling it to the general ledger on a monthly basis. Staff responsible for accounts receivable should be trained to perform and document these reconciliations.
5. Proper documentation retained to support the inventory process.
·         Consider enhancing internal control documentation (e.g., procedures checklist) similar to those recommended in nonprofit accounting guides.
Provide training to finance staff on best practices in cash management for non-profits.
Explore contracting with a financial statement audit support service provider to assist with internal preparation for audit readiness.
Consider engaging an external consultant or CPA firm experienced in healthcare compliance to assist with cost report preparation and filing procedures in future periods.
Monitor and review compliance with policies quarterly through finance department reports, escalating oversight to the board’s finance or compliance committee as needed.
4. Conduct quarterly internal audits of provider files and encounter data to ensure ongoing compliance.
Provide staff training on revised policy and internal control expectations, and issue a memo reinforcing accountability
5. Conduct quarterly internal procurement audits; track corrective actions.
5. Conduct quarterly compliance testing of procurement files to verify inclusion of exclusion checks.
1. Provide staff training on proper cash management and documentation standards under 2 CFR § 200.305.
6. Institute periodic internal audit or monitoring reviews of grant timelines and period-of-performance compliance.
5. Provide training for financial and program staff on federal budget monitoring requirements.
6. Provide staff training on SFDP compliance standards, documentation expectations, and policy implementation.
We recommend that South Central Medical and Resource Center, Inc. implement formal procedures requiring the preparation and review of bank reconciliations for all cash accounts within 30 days of month-end. Staff should be trained on these procedures, and reconciliations should be reviewed and approved by management including the board of directors or finance committee to ensure accuracy and accountability.
We recommend that the organization implement written accounting procedures that include maintaining an accounts receivable subsidiary ledger and reconciling it to the general ledger on a monthly basis. Staff responsible for accounts receivable should be trained to perform and document these reconciliations.
5. Proper documentation retained to support the inventory process.
·         Consider enhancing internal control documentation (e.g., procedures checklist) similar to those recommended in nonprofit accounting guides.
Provide training to finance staff on best practices in cash management for non-profits.
Explore contracting with a financial statement audit support service provider to assist with internal preparation for audit readiness.
Consider engaging an external consultant or CPA firm experienced in healthcare compliance to assist with cost report preparation and filing procedures in future periods.
Monitor and review compliance with policies quarterly through finance department reports, escalating oversight to the board’s finance or compliance committee as needed.
4. Conduct quarterly internal audits of provider files and encounter data to ensure ongoing compliance.
Provide staff training on revised policy and internal control expectations, and issue a memo reinforcing accountability
5. Conduct quarterly internal procurement audits; track corrective actions.
5. Conduct quarterly compliance testing of procurement files to verify inclusion of exclusion checks.
1. Provide staff training on proper cash management and documentation standards under 2 CFR § 200.305.
6. Institute periodic internal audit or monitoring reviews of grant timelines and period-of-performance compliance.
5. Provide training for financial and program staff on federal budget monitoring requirements.
6. Provide staff training on SFDP compliance standards, documentation expectations, and policy implementation.
We recommend that South Central Medical and Resource Center, Inc. implement formal procedures requiring the preparation and review of bank reconciliations for all cash accounts within 30 days of month-end. Staff should be trained on these procedures, and reconciliations should be reviewed and approved by management including the board of directors or finance committee to ensure accuracy and accountability.
We recommend that the organization implement written accounting procedures that include maintaining an accounts receivable subsidiary ledger and reconciling it to the general ledger on a monthly basis. Staff responsible for accounts receivable should be trained to perform and document these reconciliations.
5. Proper documentation retained to support the inventory process.
·         Consider enhancing internal control documentation (e.g., procedures checklist) similar to those recommended in nonprofit accounting guides.
Provide training to finance staff on best practices in cash management for non-profits.
Explore contracting with a financial statement audit support service provider to assist with internal preparation for audit readiness.
Consider engaging an external consultant or CPA firm experienced in healthcare compliance to assist with cost report preparation and filing procedures in future periods.
Monitor and review compliance with policies quarterly through finance department reports, escalating oversight to the board’s finance or compliance committee as needed.
4. Conduct quarterly internal audits of provider files and encounter data to ensure ongoing compliance.
Provide staff training on revised policy and internal control expectations, and issue a memo reinforcing accountability
5. Conduct quarterly internal procurement audits; track corrective actions.
5. Conduct quarterly compliance testing of procurement files to verify inclusion of exclusion checks.
1. Provide staff training on proper cash management and documentation standards under 2 CFR § 200.305.
6. Institute periodic internal audit or monitoring reviews of grant timelines and period-of-performance compliance.
5. Provide training for financial and program staff on federal budget monitoring requirements.
6. Provide staff training on SFDP compliance standards, documentation expectations, and policy implementation.
We recommend that South Central Medical and Resource Center, Inc. implement formal procedures requiring the preparation and review of bank reconciliations for all cash accounts within 30 days of month-end. Staff should be trained on these procedures, and reconciliations should be reviewed and approved by management including the board of directors or finance committee to ensure accuracy and accountability.
We recommend that the organization implement written accounting procedures that include maintaining an accounts receivable subsidiary ledger and reconciling it to the general ledger on a monthly basis. Staff responsible for accounts receivable should be trained to perform and document these reconciliations.
5. Proper documentation retained to support the inventory process.
·         Consider enhancing internal control documentation (e.g., procedures checklist) similar to those recommended in nonprofit accounting guides.
Provide training to finance staff on best practices in cash management for non-profits.
Explore contracting with a financial statement audit support service provider to assist with internal preparation for audit readiness.
Consider engaging an external consultant or CPA firm experienced in healthcare compliance to assist with cost report preparation and filing procedures in future periods.
Monitor and review compliance with policies quarterly through finance department reports, escalating oversight to the board’s finance or compliance committee as needed.
4. Conduct quarterly internal audits of provider files and encounter data to ensure ongoing compliance.
Provide staff training on revised policy and internal control expectations, and issue a memo reinforcing accountability
5. Conduct quarterly internal procurement audits; track corrective actions.
5. Conduct quarterly compliance testing of procurement files to verify inclusion of exclusion checks.
1. Provide staff training on proper cash management and documentation standards under 2 CFR § 200.305.
6. Institute periodic internal audit or monitoring reviews of grant timelines and period-of-performance compliance.
5. Provide training for financial and program staff on federal budget monitoring requirements.
6. Provide staff training on SFDP compliance standards, documentation expectations, and policy implementation.