Finding 1161776 (2025-005)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2025-11-03

AI Summary

  • Core Issue: The Federal Financial Report (FFR) for grant C8ECS44676 included an overstatement of expenditures by $565,252.
  • Impacted Requirements: The report did not align with the Organization's accounting records, leading to an understatement of unobligated federal funds.
  • Recommended Follow-Up: Implement a review process for FFRs by someone other than the preparer to ensure accuracy before submission to DHHS.

Finding Text

Finding: 2025-005 Reporting Federal Programs: Grants for Capital Development in Health Centers CFDA 93.526 Criteria: Uniform Guidance, Reporting – Federal Financial Report Condition: The Federal Financial Report (FFR) submitted to the Department of Health and Human Services (DHHS) for the period ended September 14, 2024, contained incorrect data for federal share of expenditures for the Organization’s Federal Grant C8ECS44676. The expenditures were overstated by $565,252. Cause: The Organization’s submission of its FFR included inconsistencies with the accounting records. Effect: The unobligated balance of Federal funds reported to DHHS was understated by $565,252. Questioned Costs: None reported. Context: There were inconsistencies with the FFR and the Organization’s accounting records. It is noted that the Organization had more unobligated funds than were reported on the FFR. Repeat Finding from Prior Year: No Recommendation: It is recommended that a system is developed in which the FFR for any Federal grant is reviewed by a person other than the preparer of the report. Views of Responsible Officials: Management concurs. Procedures will be established to ensure that FFR are reviewed by a person other than the preparer prior to submission to DHHS. Contact Person: Janice Robinson, CEO Anticipated Date of Completion: November 30, 2025

Corrective Action Plan

In Finding 2025-005, a condition was noted that a Federal Financial Report (FFR) submitted to the Department of Health and Human Services for the period ended September 14, 2024, contained incorrect data for the federal share of expenditures for the Organization’s federal grant C8ECS44676. Management recognizes the importance of complying with federal reporting guidelines. In response to Finding 2025-005, management concurs, and procedures will be established to ensure that FFR filings are reviewed by a person other than the preparer prior to submission to ensure accurate reporting.

Categories

Reporting

Other Findings in this Audit

  • 1161774 2025-004
    Material Weakness Repeat
  • 1161775 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.224 CONSOLIDATED HEALTH CENTERS (COMMUNITY HEALTH CENTERS, MIGRANT HEALTH CENTERS, HEALTH CARE FOR THE HOMELESS, AND PUBLIC HOUSING PRIMARY CARE) $6.29M
93.918 GRANTS TO PROVIDE OUTPATIENT EARLY INTERVENTION SERVICES WITH RESPECT TO HIV DISEASE $714,777
93.153 COORDINATED SERVICES AND ACCESS TO RESEARCH FOR WOMEN, INFANTS, CHILDREN, AND YOUTH $396,985
93.526 AFFORDABLE CARE ACT (ACA) GRANTS FOR CAPITAL DEVELOPMENT IN HEALTH CENTERS $312,141
93.217 FAMILY PLANNING_SERVICES $266,605
93.527 AFFORDABLE CARE ACT (ACA) GRANTS FOR NEW AND EXPANDED SERVICES UNDER THE HEALTH CENTER PROGRAM $131,797
93.898 CANCER PREVENTION AND CONTROL PROGRAMS FOR STATE, TERRITORIAL AND TRIBAL ORGANIZATIONS $63,730
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $0