Finding 2023-002 Material Weakness in Internal Control Over Reporting
Assistance Listing Numbers 93.224 Health Center Program
93.527 Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program
Federal Agency U.S. Department of Health and Human Services, Health Res...
Finding 2023-002 Material Weakness in Internal Control Over Reporting
Assistance Listing Numbers 93.224 Health Center Program
93.527 Affordable Care Act (ACA) for New and Expanded Services Under the Health Center Program
Federal Agency U.S. Department of Health and Human Services, Health Resources and Services Administration
Passthrough Agency N/A
Award Number/Year 2023
Criteria
FFHC is responsible for preparing and submitting its annual Universal Report and Federal Financial Reports in a timely manner.
Views of Responsible Officials and Planned Corrective Actions
Friend Family Health Center Inc. and Affiliates (Organization) will implement the following corrective actions for the fiscal year ending June 30, 2023, to remediate the finding and address the cause of the finding. The Organization will implement the following corrective actions for fiscal year 2023 to remediate the finding and address the cause of the finding. The Organization has hired staff with higher technical accounting skills than the previous staff. The following staff have been hired full-time or will be hired soon: Payroll and Benefits Specialist, Grant Accountant, Senior Staff Accountant, Accounts Payables and Receivables Specialist, and a Purchasing Specialist.
• The Chief Financial Officer (CFO) will be responsible for the implementation of the corrective action plan and will oversee all related finance activities.
• The Organization will document accounting policies and procedures to reflect the new month-end processes and provide training to staff on current and future policies.
• The Organization has implemented a new accounting system – Sage Intacct. Additionally, we have implemented a grants project tracking module to better help with grants and contracts reporting and compliance.
• All grant-related year-end audit procedures have been transitioned to the Grant Accountant who has experience with financial audits and compliance and reporting for City, State, and Federal grants.
• The Organization will ensure that Finance personnel receive a minimum of twenty-five (25) hours of training annually of relevant accounting topics including updates to generally accepted accounting principles, generally accepted government accounting principles, nonprofit and governmental financial reporting, and other related accounting trainings.
• The Organization will ensure that any personnel involved in financial reporting have the technical expertise to help with the preparation, review, and analysis of the Federal Financial Reports and the Universal Report.
The target date for full implementation of these corrective actions is December 30, 2025. The person responsible for the planned resources will be Raheel Shahzad, Chief Financial Officer (312) 682-6110. Our address is 340 E. 51st St., Chicago, IL 60615.