Audit 369978

Finding 2024-003: Health Center Program Cluster U.S. Department of Health and Human Services – Assistance Listing No. 93.224/93.527; Grant No. H80CS24175 and H8L51564; Grant Periods: May 1, 2023 to April 30, 2025 and September 1, 2023 to December 31, 2024 Condition: The Organization submitted the annual FFRs more than 90 days after the end of the budget period. Program income amount reported could not be substantiated. Criteria: The Organization, as a recipient of the Health Center Program Cluster funds, is required to submit annual Federal Financial Report (FFR) (SF-425) 90 days after the end of the budget period. Cause: The Organization has not enforced its written financial closing and reporting policies and procedures to ensure FFRs were submitted timely. Effect: The Organization did not comply with submitting FFRs by the due date and could not support the program income reported on the FFR. Context: We obtained and reviewed the completed annual FFRs and noted the reports were submitted 19 and 25 days later, respectively, for each of the grants after the due dates. Questions Costs: None Recommendation: We recommend management create a plan to ensure required program reports are completed by or before their due dates, to avoid punitive damages for noncompliance. Management should consider delegating the preparation to someone else other than the CFO and have the CFO instead review and submit. View of responsible officials and planned corrective actions: