Finding Text
Finding 2021-004: Reporting - Material Weakness
Grantor: U.S. Department of Health and Human
Services
Federal Program Names: Health Center Program Cluster:
Health Center Program (Community Health
Centers, Migrant Health Centers, Health
Care for the Homeless, and Public Housing
Primary Care)
COVID-19 Health Center Program
(Community Health Centers, Migrant Health
Centers, Health Care for the Homeless, and
Public Housing Primary Care)
Grants for New and Expanded Services
under the Health Center Program
Federal Assistance Listing Numbers: 93.224 and 93.527
Federal Award Identification Number and Year: H80CS26638 - 2020 and 2021,
H8DCS35487 - 2020, H8CCS34364 - 2020,
H8ECS38373 - 2020, and H8F40829 - 2021
Criteria
In accordance with §200.328, Financial Reporting, annual audit reports of recipients of federal
funds are required to be submitted to the Federal Audit Clearing House within the earlier of 30 days
after the receipt of the audit report or nine months after the end of the audit period. In addition, in
accordance with grant requirements, annual Federal Financial Reports ("FFR") must be submitted
no later than indicated in the notice of grant award.
Condition
For the year ended June 30, 2021, the Center did not submit their annual audit in accordance with
the Uniform Guidance on a timely basis. In addition, the Center submitted the annual FFR late for
the budget period ended January 31, 2021.
Cause
Due to the turnover in the financial leadership, the ongoing pandemic and the closing of their prior
audit firm, these reports were not submitted on time.
Effect
The Center did not comply with the appropriate rules and regulations as per the Uniform Guidance
and with DHHS grant requirements.
Questioned Costs
None.
Identification of Repeat Finding
Yes, see finding 2020-004.
Recommendation
The Center should establish controls to ensure all accounting records are analyzed and proper
support is available in order to ensure that the financial statement audit is submitted on a timely
basis to the Federal government. The Center should also ensure that all reporting requirements are
monitored and met on a timely basis.
Views of Responsible Officials
Management and the Board of Directors agree with the finding and will implement additional
controls to ensure all reports are submitted timely in accordance with the Uniform Guidance and
DHHS grant requirements.