Audit 371707

Finding: 2025-004 Uniform Data System Report Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Condition: The Uniform Data System (UDS) report submitted to DHHS for the year ended December 31, 2024 contained incorrect data for federal grant reporting, patient revenue and total expenses. Revenues and expenses were not correctly reported on Tables 8E and 9D of the UDS report. Federal grant reporting was understated by $1,685,000. The revenues were overstated by approximately $8,426,000 and expenses were understated by approximately $1,238,000. Criteria: Uniform Guidance, Special Reporting – Uniform Data System Cause: The above exception resulted from errors in preparing Tables 8A, 9D, and 9E of the Uniform Data System report. Effect: The Department of Health and Human Services reviews the UDS data for financial analysis for grant recipients. Errors in this data causes incorrect financial analysis results and distorted performance indicators. Questioned Costs: None reported Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that a system be developed to ensure that revenue and expenses are reported and reconciled to the UDS report. HRSA should be informed of the error and the 2024 Tables 8A, 9D, and 9E should be revised and resubmitted, if requested. Views of Responsible Officials: Management concurs. Efforts will be made to ensure that the revenue and expenses recorded is reconciled to the revenue and expenses on the UDS report. Contact Person: Janice Robinson, CEO Anticipated Date of Completion: November 30, 2025

Finding: 2025-005 Reporting Federal Programs: Grants for Capital Development in Health Centers CFDA 93.526 Criteria: Uniform Guidance, Reporting – Federal Financial Report Condition: The Federal Financial Report (FFR) submitted to the Department of Health and Human Services (DHHS) for the period ended September 14, 2024, contained incorrect data for federal share of expenditures for the Organization’s Federal Grant C8ECS44676. The expenditures were overstated by $565,252. Cause: The Organization’s submission of its FFR included inconsistencies with the accounting records. Effect: The unobligated balance of Federal funds reported to DHHS was understated by $565,252. Questioned Costs: None reported. Context: There were inconsistencies with the FFR and the Organization’s accounting records. It is noted that the Organization had more unobligated funds than were reported on the FFR. Repeat Finding from Prior Year: No Recommendation: It is recommended that a system is developed in which the FFR for any Federal grant is reviewed by a person other than the preparer of the report. Views of Responsible Officials: Management concurs. Procedures will be established to ensure that FFR are reviewed by a person other than the preparer prior to submission to DHHS. Contact Person: Janice Robinson, CEO Anticipated Date of Completion: November 30, 2025