Finding Text
Federal Programs: Department of Health and Human Services, Health Center Program Cluster ALN 93.224 and 93.526
Condition/Criteria: Uniform Guidance 2 CFR 200.512(a) established the filing requirements for the submission of single audits to the federal audit clearing house. It states the single audit reporting package must be submitted 30 days after receipt of the auditor's report(s), or 9 months after the end of the fiscal year —whichever comes first.
Cause: Accounting department insufficiently staffed and lack of adequate technical support.
Effect: Because the Organization’s financial statements were materially misstated, this resulted in late submission to the Federal Audit Clearinghouse the past two years.
Repeat Finding: Yes
Recommendation: The Organization should implement stronger processes and related internal controls surrounding financial reporting. It should address employee staffing and retention within the accounting department and evaluate opportunities to implement technology to streamline processes.
Views of Responsible Officials: The Organization’s management agrees with the finding and has decided to outsource accounting to a firm that well versed in this specialized healthcare field.