Finding 1076347 (2023-001)

2023-001 – Preparation of the Schedule of Expenditures of Federal Awards Identification of the Federal Program – 93.224/93.527 Health Center Program Cluster Criteria – CFR Section §200.510(b) states in part: “The auditee must also prepare a schedule of expenditures of Federal awards (Schedule) for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with §200.502”. CFR Section §200.502(a) also states that, “The determination of when a Federal award is expended must be based on when the activity related to the Federal award occurs”. Condition – We noted that there were significant adjustments needed to present a complete and accurate Schedule. Cause – WWH’s internal controls over preparation and review of the Schedule were not properly implemented for the year ended December 31, 2023. Such internal controls were designed to require timely review of the accuracy of the Schedule by appropriate personnel. Effect – The Schedule for the year ended December 31, 2023 inappropriately included $250,500 of expenditures related to previous years. Questioned costs – none Context – Internal controls or processes in place were not implemented as intended to ensure an accurate Schedule was prepared. Repeat finding – No Recommendation – We recommend the Schedule to be reviewed timely and with sufficient precision by the appropriate level of personnel. View of Responsible Officials - Management agrees with the Federal Award Finding regarding the determination of when a Federal award is expended. As part of the Corrective Action Plan, Grants management staff from Finance and Program departments are meeting regularly to ensure that the expenditures are recorded in the appropriate year.