Finding 1168203 (2024-003)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2026-01-07

AI Summary

  • Core Issue: The Organization failed to prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA) as required by Uniform Guidance.
  • Impacted Requirements: This non-compliance affects the accuracy and completeness of federal expenditure reporting, leading to potential audit issues.
  • Recommended Follow-Up: Strengthen controls over SEFA preparation to ensure all federal awards are identified and reconciled with accounting records.

Finding Text

Criteria – Uniform Guidance (2 CFR §200.510(b)) requires auditees to prepare a SEFA that is accurate, complete, and supported by the accounting records. Condition and Description – The Organization did not prepare a complete and accurate Schedule of Expenditures of Federal Awards (SEFA) as required by Uniform Guidance. Certain federal awards expended during the year were omitted, and amounts reported did not reconcile to the accounting records, resulting in an incomplete representation of federal expenditures subject to audit. Questioned Costs – Unknown. Cause/Effect –. Controls over SEFA preparation were insufficient to ensure all federal awards were identified and reconciled to the accounting records. As a result, certain expenditures were omitted or misstated, increasing the risk of incomplete or inaccurate reporting under Uniform Guidance.

Corrective Action Plan

AHC has implemented a comprehensive process to ensure the accuracy and completeness of its Schedule of Expenditures of Federal Awards (SEFA). A federal award register has been created, detailing ALNs/CFDA numbers, award numbers, and pass-through information. Quarterly reconciliations of the SEFA to the general ledger and individual grant records are performed, with supervisory review and sign-off to confirm accuracy. All general ledger grant segments are now mapped to SEFA reporting lines, and completeness checks are conducted using HRSA and MDHHS award confirmations. During the FY 2024 audit, it was identified that certain foundation grant CFDA numbers were missing from the SEFA schedule, resulting in incomplete reporting. In response, AHC has implemented a new policy requiring that all new grant awards undergo verification of CFDA numbers and federal expenditure classification prior to inclusion in the SEFA. This additional layer of review ensures that all awards are properly captured and reported in compliance with Uniform Guidance requirements. Finance staff have been retrained on SEFA preparation and federal reporting requirements, and quarterly monitoring continues to ensure ongoing compliance, completeness, and accuracy of all reported expenditures.

Categories

Reporting

Other Findings in this Audit

  • 1168195 2024-002
    Material Weakness Repeat
  • 1168196 2024-002
    Material Weakness Repeat
  • 1168197 2024-002
    Material Weakness Repeat
  • 1168198 2024-003
    Material Weakness Repeat
  • 1168199 2024-003
    Material Weakness Repeat
  • 1168200 2024-003
    Material Weakness Repeat
  • 1168201 2024-003
    Material Weakness Repeat
  • 1168202 2024-003
    Material Weakness Repeat
  • 1168204 2024-004
    Material Weakness Repeat
  • 1168205 2024-004
    Material Weakness Repeat
  • 1168206 2024-004
    Material Weakness Repeat
  • 1168207 2024-005
    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) $5.00M
93.898 CANCER PREVENTION AND CONTROL PROGRAMS FOR STATE, TERRITORIAL AND TRIBAL ORGANIZATIONS $52,769
93.800 ORGANIZED APPROACHES TO INCREASE COLORECTAL CANCER SCREENING $42,000
93.527 GRANTS FOR NEW AND EXPANDED SERVICES UNDER THE HEALTH CENTER PROGRAM $14,425