Audit 394745

B. Major Federal Program Findings and Questioned Costs 2025-001 Failure to Properly Complete Required Training – Significant Deficiency Federal Program – Maternal, Infant and Early Childhood Home Visiting Program CFDA 93.870 Pass-through Entity – Community Based Care Federal Agency – United States Department of Health and Human Services Criteria: 2 CFR 200.303 states a non-Federal entity must establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition: During our audit, auditors tested 25 employees for completion certificate of required training as a condition of the grants. Two of the required annual training were significantly non-compliant. • The Annual HIPPA Training 4 of the 25 (16%) of employees did not properly complete the training. • The Annual 504/Civil Rights Training 5 of the 25 (20%) of the employees did not properly complete the training. Questioned Costs: No questioned costs were noted. Cause: The cause of this condition appears to be a lack of oversight in monitoring training completion records and insufficient internal controls over training compliance. Effect: Failure to properly complete required training increases the risk of noncompliance with federal program requirements, potentially leading to disallowed costs, penalties, or other adverse consequences. Recommendation: We recommend that management, enhance internal controls over training compliance by implementing more effective tracking and monitoring system and assign responsibility for ensuring timely completion of required training to a specific individual or department. Additionally, we recommend Hibiscus consider implementing a rolling-year training schedule rather than an annual hire-date renewal process. This approach can streamline tracking, reduce administrative burdens, and ensure consistent compliance by aligning training requirements with a standard cycle applicable to all employees.