Audit 403015

2025-002 Information on the Federal Program: Assistance Listing Number 93.224/93.527; Health Center Program Cluster; Department of Health and Human Services; Federal Award No. H80CS08221 Criteria or Specific Requirement: Health centers must prepare and submit accurate and complete federal reports, including the Federal Financial Report (FFR) and Uniform Data System (UDS), in accordance with federal program requirements. Condition: The Organization did not accurately prepare and sufficiently review required federal program reports. Specifically: • The FFR was submitted with incorrect information reported in the program income lines (lines 10l and 10n). • The UDS contained errors in Table 8A, which did not reconcile to the Organization’s underlying financial records for the same reporting period and Table 9E, which omitted supplemental COVID-19 funding received during the reporting period. Cause: The Organization did not have adequately designed internal controls to ensure accurate federal reporting. Specifically, there was no documented secondary review of the Federal Financial Report by personnel with sufficient knowledge of federal reporting requirements. Additionally, controls were not in place to ensure that the UDS report was supported by retained documentation or reconciled to the accounting records prior to submission. Effect or Potential Effect: As a result of these control deficiencies, required federal reports were submitted with inaccurate and incomplete information. Inaccurate reporting may impair the federal awarding agency’s ability to properly monitor the program performance and compliance with program requirements and increases the risk of noncompliance in future reporting periods. Questioned Costs: None Context: During the fiscal year under audit, errors and inconsistencies were identified in the Organization’s preparation of required federal program reports, including the Federal Financial Report and Uniform Data System, when compared to underlying accounting records and supporting documentation. Identification as a Repeat Finding, if Applicable: Similar to finding 2024-006 in prior year’s audit. Recommendation: We recommend management strengthen internal controls over federal reporting by implementing an additional level of review by personnel with appropriate knowledge of Health Center Program reporting requirements. Management should also ensure that all federal reports are reconciled to the underlying accounting records, appropriately supported by retained documentation, and reviewed prior to submission. Views of Responsible Officials and Planned Corrective Actions: We concur. Management is in the process of evaluating and strengthening internal controls over federal program reporting, including enhancing review procedures to ensure reports are accurate, complete, supported by appropriate documentation, and prepared in accordance with applicable reporting requirements.