Audit 364808

Finding 2023-003 Reporting - Timely Submission of Financial Reports – Significant Deficiency in Internal Control over Compliance and Noncompliance Agency Department of Health and Human Services Program ALN: No. 93.224 / 93.527 Health Center Program Cluster Award Year 2023 Criteria or Specific Requirement 2 CFR subtitle A Chapter II part 200 subpart F section 200.512 states that “(1) The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day.” Condition The Federal data collection form and reporting package were not filed on time. Cause There were limited personnel resources at the Borough to assist in the timely completion of the Borough’s audit. Effect or potential effect Federal funds could potentially be expended on unallowable activities and for unallowed costs, and outside the period of performance. Questioned Costs None noted. Context The Form SF-SAC is due nine months after the fiscal year-end. The form for the fiscal year ended June 30, 2023 was filed late. Identification as a Repeat Finding Yes. Finding 2022-003 Significant Deficiency in Internal Control over Compliance and Noncompliance Recommendation The Borough should evaluate resources allocated to staffing to ensure it has the capacity to adequately prepare and assist in the timely execution of the audit. Views of responsible officials Management agrees with the finding and is in the process of catching up on audits with the goal of completing the FY 2025 audit timely.

Finding 2023-004 Reporting – Material Weakness in Internal Control Over Compliance and Material Noncompliance Agency Department of Health and Human Services Program ALN: No. 93.224 / 93.527 Health Center Program Cluster Award Year 2023 Criteria or Specific Requirement In accordance with 2 CFR part 170, the Borough was required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) no later than the end of the month following the month in which the obligation was made. Condition The required reports were not submitted during the year. Controls were not in place to evaluate the applicability of the reporting requirement and ensure the reports were submitted timely. Cause The Borough received funding related to the American Rescue Plan Act Funding for Health Centers (ARPA). The Borough was not aware that this subaward reporting requirement was applicable for funds received under ARPA. Effect or potential effect The Borough was not in compliance with subrecipient reporting requirements Questioned Costs None noted. Context The auditor requested the reports for the Borough’s subawards that were required under FSRS. The Borough was unable to provide the requested supports as they had not been filed. Identification as a Repeat Finding Yes. 2022-004 Material Weakness in Internal Control over Compliance and Noncompliance Recommendation The Borough should implement internal control procedures to evaluate applicability of grant reporting requirements, especially when funding sources or nature of grant awards change. Views of responsible officials Management agrees with the finding. The Borough has taken corrective action for the audit finding. New controls are being put into place to ensure that all subawards over $30,000 are properly and timely reported.

Finding 2023-003 Reporting - Timely Submission of Financial Reports – Significant Deficiency in Internal Control over Compliance and Noncompliance Agency Department of Health and Human Services Program ALN: No. 93.224 / 93.527 Health Center Program Cluster Award Year 2023 Criteria or Specific Requirement 2 CFR subtitle A Chapter II part 200 subpart F section 200.512 states that “(1) The audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day.” Condition The Federal data collection form and reporting package were not filed on time. Cause There were limited personnel resources at the Borough to assist in the timely completion of the Borough’s audit. Effect or potential effect Federal funds could potentially be expended on unallowable activities and for unallowed costs, and outside the period of performance. Questioned Costs None noted. Context The Form SF-SAC is due nine months after the fiscal year-end. The form for the fiscal year ended June 30, 2023 was filed late. Identification as a Repeat Finding Yes. Finding 2022-003 Significant Deficiency in Internal Control over Compliance and Noncompliance Recommendation The Borough should evaluate resources allocated to staffing to ensure it has the capacity to adequately prepare and assist in the timely execution of the audit. Views of responsible officials Management agrees with the finding and is in the process of catching up on audits with the goal of completing the FY 2025 audit timely.

Finding 2023-004 Reporting – Material Weakness in Internal Control Over Compliance and Material Noncompliance Agency Department of Health and Human Services Program ALN: No. 93.224 / 93.527 Health Center Program Cluster Award Year 2023 Criteria or Specific Requirement In accordance with 2 CFR part 170, the Borough was required to report first-tier subawards of $30,000 or more to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS) no later than the end of the month following the month in which the obligation was made. Condition The required reports were not submitted during the year. Controls were not in place to evaluate the applicability of the reporting requirement and ensure the reports were submitted timely. Cause The Borough received funding related to the American Rescue Plan Act Funding for Health Centers (ARPA). The Borough was not aware that this subaward reporting requirement was applicable for funds received under ARPA. Effect or potential effect The Borough was not in compliance with subrecipient reporting requirements Questioned Costs None noted. Context The auditor requested the reports for the Borough’s subawards that were required under FSRS. The Borough was unable to provide the requested supports as they had not been filed. Identification as a Repeat Finding Yes. 2022-004 Material Weakness in Internal Control over Compliance and Noncompliance Recommendation The Borough should implement internal control procedures to evaluate applicability of grant reporting requirements, especially when funding sources or nature of grant awards change. Views of responsible officials Management agrees with the finding. The Borough has taken corrective action for the audit finding. New controls are being put into place to ensure that all subawards over $30,000 are properly and timely reported.