Finding 1170865 (2024-002)

Criteria: In accordance with Uniform Guidance 200.334, the Organization has retention requirements for records. Financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a federal award must be retained for a period of three years from the date of submission of the final expenditure report or, for federal awards that are renewed annually, from the date of submission of the annual financial report, as reported to the federal awarding agency. Condition and Context: During our expenditure and sliding fee testing, we noted that adequate supporting documentation was not maintained for some of the sliding fee calculation and payroll expenditures tested. The Organization lacked adequate controls over its sliding fee discount program to ensure applications were properly processed, recorded, and received the correct discount by not maintaining proper documentation. The finding relates to maintaining records in accordance with Federal regulations. Cause: The Organization experienced employee turnover in several departments. Effect or Potential Effect: If a non-federal entity fails to comply with federal statues, the federal awarding agency may take one or more of the following actions, (a) temporarily withhold cash payments pending correction of the deficiency by the non-federal entity, (b) disallow all or part of the cost of the activity or action not in compliance, (c) wholly or partly suspend or terminate the federal award, (d) initiate suspension proceedings, (e) withhold further federal awards for the program or (f) take other legally available remedies. Repeat Finding: Yes Recommendation: The Organization should take measures to maintain supporting documents in an electronic environment that are backed up electronically to prevent any loss of data in the event of a fire or breach. Client Response: Management acknowledges this condition related to lack of adequate controls over the sliding fee discount program and is creating controls that will assure compliance with requirements.