Finding 1163612 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2025-12-08

AI Summary

  • Core Issue: The Organization failed to provide accurate supporting documentation for annual UDS and FFR reports, leading to potential errors.
  • Impacted Requirements: Compliance with 45 CFR 75.342 for accurate reporting of federal financial data.
  • Recommended Follow-Up: Revise reporting policies, implement a standardized checklist, and ensure all reports are reconciled and reviewed before submission by the Controller and CFO.

Finding Text

Health Center Program Cluster – ALN Nos. 93.224 and 93.527 U.S. Department of Health and Human Services Award No. H80CS10591 Program Year 17 and 18 Family Planning Services – ALN No. 93.217 U.S. Department of Health and Human Services Award No. FPHPA006584 Program Year 3 and 4 Criteria or Specific Requirement – Reporting – 45 CFR 75.342 Condition – The Organization is required to prepare and submit an annual Uniform Data System (UDS) for each calendar year and an annual Federal Financial Report (FFR) for each grant year for the Health Center Program Cluster and to prepare and submit quarterly Federal Cash Transaction Reports (FCTR) for each grant budget period for the Family Planning Services awards. These reports are to be prepared using accurate financial information. Cause – The Organization was unable to provide supporting documentation that agreed to the line items tested on the report. Effect or potential effect– Potential errors were made on the annual UDS report and Family Planning Services FFR reports. Questioned cost – None Context – The annual UDS and FFR reports for the Health Center Program Cluster and four quarterly FCTR reports for the Family Planning Services awards were selected for testing. The sampling methodology used is not and is not intended to be statistically valid. Of the ten inputs tested, two exceptions were noted related to the annual UDS report. Of the four reports, three reports including exceptions were noted in the quarterly Family Planning services reports. Identification as a Repeat Finding – Yes, findings 2024-002 and 2023-009. Recommendation – The Organization should revise policies and procedures over federal reporting to ensure reports are prepared using accurate information and supporting documentation for federal grant reports should be maintained. Views of Responsible Officials and Planned Corrective Actions – CCI Health Services will strengthen its processes to ensure all UDS, FFR, and FCTR reports are prepared using accurate financial information supported by appropriate documentation. A standardized federal reporting checklist is being developed to identify required data sources, outline reconciliation steps, and document preparer and reviewer responsibilities. All reports will be reconciled to the system reports and reviewed by both the Controller and CFO before submission to ensure accuracy and completeness. Supporting documentation for all federal reports will be maintained in a centralized location to ensure consistency and future audit readiness. Anticipated Completion/Implementation Date: End of Fiscal Year 2025

Corrective Action Plan

2025-002/2024-002/2023-009 Health Center Program Cluster – ALN Nos. 93.224 and 93.527U.S. Department of Health and Human Services Award No. H80CS10591Program Year 16 and 17 Family Planning Services – ALN No. 93.217 U.S. Department of Health and Human Services Award No. FPHPA006584 Program Year 3 and 4 Criteria or Specific Requirement – Reporting – 45 CFR 75.342 Recommendation – The Organization should revise policies and procedures over federal reporting to ensure reports are prepared using accurate information and supporting documentation for federal grant reports should be maintained. Views of Responsible Officials and Planned Corrective Actions – CCI Health Services will strengthen its processes to ensure all UDS, FFR, and FCTR reports are prepared using accurate financial information supported by appropriate documentation. A standardized federal reporting checklist is being developed to identify required data sources, outline reconciliation steps, and document preparer and reviewer responsibilities. All reports will be reconciled to the system reports and reviewed by both the Controller and CFO before submission to ensure accuracy and completeness. Supporting documentation for all federal reports will be maintained in a centralized location to ensure consistency and future audit readiness. Reason for Recurrence – CCI experienced significant turnover in the Finance Department during fiscal year 2025, which contributed to delays and difficulties in locating supporting documentation for federal reports. Anticipated Completion/Implementation Date: End of Fiscal Year 2025

Categories

Reporting

Other Findings in this Audit

  • 1163609 2025-002
    Material Weakness Repeat
  • 1163610 2025-002
    Material Weakness Repeat
  • 1163611 2025-002
    Material Weakness Repeat
  • 1163613 2025-003
    Material Weakness Repeat
  • 1163614 2025-003
    Material Weakness Repeat
  • 1163615 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.224 HEALTH CENTER PROGRAM (COMMUNITY HEALTH CENTERS, MIGRANT HEALTH CENTERS, HEALTH CARE FOR THE HOMELESS, AND PUBLIC HOUSING PRIMARY CARE) $4.73M
10.557 WIC SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN $4.63M
93.217 FAMILY PLANNING SERVICES $1.09M
93.493 CONGRESSIONAL DIRECTIVES $542,540
93.527 GRANTS FOR NEW AND EXPANDED SERVICES UNDER THE HEALTH CENTER PROGRAM $111,442