Finding 1170429 (2022-003)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2026-01-23
Audit: 383596
Organization: Baltimore Medical System, Inc. (MD)
Auditor: RSM US LLP

AI Summary

  • Core Issue: The Organization failed to submit its audit report for the year ended December 31, 2022, by the September 30, 2023 deadline, submitting it instead in January 2026.
  • Impacted Requirements: This delay violates 45 CFR Part 75.512, which mandates timely submission of audited financial statements.
  • Recommended Follow-Up: Management should implement the procedures outlined in Finding 2022-001 to ensure future audits are completed on time.

Finding Text

Federal Award Agency: U.S. Department of Health and Human Services Federal Awards: 93.224 / 93.527 – Health Center Program Cluster, 93.566 - Refugee and Entrant Assistance State/Replacement Designee Administered Programs, and 93.526 – Grants for Capital Development in Health Centers Criteria: Under 45 CFR Part 75.512, the Uniform Guidance requires that audited consolidated financial statements and related data collection form are submitted by the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. Condition: The audit of the Organization for the year ended December 31, 2022, had a submission deadline of September 30, 2023. The Organization did not complete and submit their audit for the year ended December 31, 2022, to the federal clearinghouse until January 2026. Cause: Significant delays stemming from Finding 2022-001 caused the required audit procedures and the ultimate completion date to extend beyond the regulatory deadline. Effect: The late filing could potentially delay the ability of the federal government to monitor the Organization. Context: No monetary value or effect on population as the condition relates to the late filing of the audit report. Repeat finding: No. Recommendation: We recommend that management implement procedures and controls as described in Finding 2022-001 to ensure future audits are completed timely. Views of responsible officials and planned corrective actions: Management agrees with the finding. See corrective action plan. Reportable questioned costs: None

Corrective Action Plan

Finding: The audit of the Organization for the year ended December 31, 2022, had a submission deadline of September 30, 2023. The Organization did not complete and submit their audit for the year ended December 31, 2022, to the federal clearinghouse until November 2025. Significant delays stemming from Finding 2022-001 caused the required audit procedures and the ultimate completion date to extend beyond the regulatory deadline. Views of responsible officials and planned corrective actions: Management agrees with the recommendation to implement procedures and controls to ensure future audits are completed timely. During 2022 and 2023, Baltimore Medical System had significant staff turnover in the finance department which resulted in a delay in the timely completion of the audit. • Changes in the staffing of the finance department include a new Controller, Senior Accountant, Grant Accountant, Accounts Payable Specialist and Payroll Specialist. In addition, a second Senior Accountant was hired. • Baltimore Medical System will engage outside consultants to assist in preparing audit request items and reconciliations. Anticipated date of completion: December 31, 2025 Contact person responsible – Tammy Grinnan, Controller and Margaret Boemmel, CFO

Categories

No categories assigned yet.

Other Findings in this Audit

  • 1170418 2022-002
    Material Weakness Repeat
  • 1170419 2022-002
    Material Weakness Repeat
  • 1170420 2022-002
    Material Weakness Repeat
  • 1170421 2022-002
    Material Weakness Repeat
  • 1170422 2022-002
    Material Weakness Repeat
  • 1170423 2022-002
    Material Weakness Repeat
  • 1170424 2022-003
    Material Weakness Repeat
  • 1170425 2022-003
    Material Weakness Repeat
  • 1170426 2022-003
    Material Weakness Repeat
  • 1170427 2022-003
    Material Weakness Repeat
  • 1170428 2022-003
    Material Weakness Repeat
  • 1170430 2022-004
    Material Weakness Repeat
  • 1170431 2022-004
    Material Weakness Repeat
  • 1170432 2022-004
    Material Weakness Repeat
  • 1170433 2022-004
    Material Weakness Repeat
  • 1170434 2022-005
    Material Weakness Repeat
  • 1170435 2022-005
    Material Weakness Repeat
  • 1170436 2022-005
    Material Weakness Repeat
  • 1170437 2022-005
    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) $7.39M
93.527 AFFORDABLE CARE ACT (ACA) GRANTS FOR NEW AND EXPANDED SERVICES UNDER THE HEALTH CENTER PROGRAM $4.97M
93.526 AFFORDABLE CARE ACT (ACA) GRANTS FOR CAPITAL DEVELOPMENT IN HEALTH CENTERS $1.11M
93.566 REFUGEE AND ENTRANT ASSISTANCE_STATE ADMINISTERED PROGRAMS $994,389
93.217 FAMILY PLANNING_SERVICES $83,609
93.297 TEENAGE PREGNANCY PREVENTION PROGRAM $59,789
93.800 ORGANIZED APPROACHES TO INCREASE COLORECTAL CANCER SCREENING $54,161
93.224 AFFORDABLE CARE ACT (ACA) GRANTS FOR NEW AND EXPANDED SERVICES UNDER THE HEALTH CENTER PROGRAM $42,850
93.870 MATERNAL, INFANT AND EARLY CHILDHOOD HOME VISITING GRANT $35,754
93.501 AFFORDABLE CARE ACT (ACA) GRANTS FOR SCHOOL-BASED HEALTH CENTER CAPITAL EXPENDITURES $2,488