Finding 1056537 (2023-002)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2023
Accepted
2024-07-31

AI Summary

  • Core Issue: Significant deficiencies in internal controls over cash disbursement processes were identified, with missing management approvals for invoices.
  • Impacted Requirements: Compliance with federal program guidelines (Assistance Listing Number 93.224) requires documented approvals for cash disbursements.
  • Recommended Follow-Up: Ensure adherence to the cash disbursement process by documenting all reviews and approvals to prevent future issues.

Finding Text

Finding 2023-002, Cash Disbursement Process Information on the Federal Program - Assistance Listing Number 93.224 Health Care Center Program (Direct Health Center Program Cluster). Compliance Requirements: Activities Allowed or Unallowed. Type of Finding: Significant Deficiency in internal control over financial reporting and internal controls over Federal major programs Criteria - Based on documented internal controls, the Organization should be able to provide support for cash disbursements with management's approval. Condition - In 3 instances out of 25 items tested, invoices were not approved by management. In one instance, the supporting invoice was not able to be located. Cause - Discussions with Organization employees indicate the cause of missing documentation and approvals was due to lack of oversight. Effect - The missing support and missing approvals could result in improper nonpayroll expenditures. Questioned Costs - Zero Recommendation - We recommend the Organization follow the documented cash disbursement process and ensure reviews and approvals are documented.

Categories

Internal Control / Segregation of Duties Reporting Significant Deficiency

Other Findings in this Audit

  • 480094 2023-001
    Significant Deficiency Repeat
  • 480095 2023-002
    Significant Deficiency
  • 480096 2023-001
    Significant Deficiency Repeat
  • 480097 2023-002
    Significant Deficiency
  • 1056536 2023-001
    Significant Deficiency Repeat
  • 1056538 2023-001
    Significant Deficiency Repeat
  • 1056539 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $2.21M
93.224 Covid-19 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $914,977