FAC Explorer

Finding 1085 (2023-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2023-11-01
Audit: 2069
Organization: Advance Community Health (NC)
Auditor: Forvis LLP

AI Summary

  • Core Issue: The Organization did not provide adequate documentation for the annual Federal Financial Report (FFR), leading to potential errors.
  • Impacted Requirements: Compliance with 45 CFR 75.342, which mandates accurate and complete reporting for federal grants.
  • Recommended Follow-Up: Revise policies to ensure complete information and maintain supporting documentation for all federal grant reports.

Finding Text

Criteria or Specific Requirement – Reporting – 45 CFR 75.342 Condition – The Organization is required to prepare and submit an annual Federal Financial Report (FFR) for each grant year for each separate awards in the cluster. Questioned cost – None Context – The FFR was selected for testing with specific data from the line items selected. The sampling methodology used is not and is not intended to be statistically valid. Exceptions were noted related to the annual FFR report. Effect – Potential errors were made on the annual FFR report. Cause – The Organization was unable to provide supporting documentation that agreed to the line items tested on the report. Identification as a Repeat Finding – Not a repeat finding. Recommendation – The Organization should revise policies and procedures over federal reporting to ensure reports are prepared using complete information and supporting documentation for federal grant reports should be maintained.

Corrective Action Plan

Advance Community Health's CFO resigned and did not prepare the 3/31/2023 FFR prior to leaving in April 2023. The new CFO had to pick up where the former CFO left off with no transitional communication. The new CFO usually perform drawdowns along with the bi-weekly payroll which leaves no unobligated balances at the end of the budget year. The New CFO assumed that the former CFO had done the same. The new CFO was not aware that a drawdown in the new fiscal year was for the prior fiscal year and prepared the FFR report with no unobligated balance. This should not pose an impact on any future FFR reporting due to the New CFO's practice of drawing down funds during the payroll week and having no unobligated balances at the end of the budget period. Tiffany Robertson, the CFO will be responsible for and will continue to assess our reporting processes for accuracy. We consider this issue to be fully resolved effective 10/27/2023.

Categories

Reporting

Other Findings in this Audit

  • 1086 2023-002
    Material Weakness
  • 1087 2023-002
    Material Weakness
  • 577527 2023-002
    Material Weakness
  • 577528 2023-002
    Material Weakness
  • 577529 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $3.46M
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $2.56M
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $85,993