Finding Text
Information on the federal program – Assistance Listing Number 93.918, Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease (Ryan White Part C), Federal Award No. H7631535 for project period January 1, 2022 through December 31, 2024 and Federal Award No. H7600531 for project period May 1, 2022 through April 30, 2025.
Criteria or specific requirement – Recipients of funding under this federal program must comply with federal standards under 2 CFR section 200.307 for program income and 2 CFR section 200.328 for financial reporting.
Condition – The Organization did not properly segregate or track the usage of program income in accordance with the terms of the Notice of Award. Additionally, the Organization improperly reported $0 program income on the Federal Financial Report for Federal Award H7631535 for reporting period ended December 31, 2023.
Cause – Due to various turnovers within the finance department in 2024, there was a lack of appropriate knowledge surrounding program income requirements related to this program.
Effect or potential effect – Federal standards were not appropriately followed for program income and financial reporting.
Questioned costs – None
Context – Per inquiry with management of the Organization, review of accounting records and testing of the Federal Financial Report, it was evident that program income was not being properly tracked or reported.
Identification as a repeat finding, if applicable – not a repeat finding.
Recommendation – We recommend the Organization implement additional internal controls surrounding the tracking and reporting of program income. We also recommend management perform a detailed review of all federal notices of award to ensure compliance with program income requirements.
Views of responsible officials and planned corrective actions – See separate auditee document for planned corrective action.