Audit Finding Response ‐ 2023‐002
Agency: U.S. Department of Health and Human Services
Federal assistance listing or State ID numbers: 93.527, 93.224, Health Center Program Cluster and 435.151301, Community Health Centers Program
Criteria: The Organization is required to submit its financial stat...
Audit Finding Response ‐ 2023‐002
Agency: U.S. Department of Health and Human Services
Federal assistance listing or State ID numbers: 93.527, 93.224, Health Center Program Cluster and 435.151301, Community Health Centers Program
Criteria: The Organization is required to submit its financial statement audit and audit of compliance
described in the Uniform Guidance and Guidelines through the Federal Audit Clearinghouse within
nine months after year-end.
Statement of condition: The Organization's reporting package was not complete and submitted to the
Federal Audit Clearinghouse within nine months after year-end.
Questioned costs: The amount of questioned costs could not be determined.
Context: The financial statements and reporting package were not submitted prior to the due date.
Effect: The Organization was not in compliance with the reporting requirements of the contracts.
Cause: The submission of the 2021 reporting package was not done until October 2022. This was
due to turnover in the Organization, adoption of new accounting standards, unique material
transactions, and receiving new COVID-19 funding. Due to the late submission of the 2021 reporting
package, the 2022 audit was not submitted until calendar year 2023 and the 2023 audit could not be
completed until January 2024.
Recommendation: We recommend management continue their plan and timelines to complete the
financial statement audit by the required due date.
Management's response: The Organization will continue to monitor due dates related to its contracts and adhere to the outlined deadlines. The late submission of the March 31, 2022, financial statements
was due to a late submission of the March 31, 2021, financial statements, therefore the 2022 audit could not be scheduled and completed until calendar year 2023. The March 31, 2023, audit was scheduled for the fall of 2023, the auditors were not able to dedicate time until November and early December 2023, causing another delay in the submission of the audit. The March 31, 2024, audit will be scheduled in the spring of 2024 to ensure submission of the reporting package within the nine-month deadline. The Organization will continue to do its due diligence by providing internal and external clients with accurate and timely information.
Official Responsible for Ensuring the Corrective Action Plan: Tanya Stamps, Progressive Community Health Center Chief Financial Officer.
Planned Completion Date for the Corrective Action Plan: The Organization will continue to monitor timelines and reporting requirements on an ongoing basis.