Finding Text
U.S. Department of Health and Human Services Leading Edge Acceleration Projects (LEAP) in Health Information Technology - 93.345 Award #90AX0034/01-00 Criteria or Specific Requirement – Reporting Per 2 CFR 200.303, the non-federal entities receiving federal awards (i.e ., auditee management) must establish and maintain internal control design to reasonably ensure compliance with federal statutes, regulations, and the terms and conditions of the federal award. Per the LEAP agreement, paragraph 18, semi-annual Federal Financial Reports (FFR) are to be submitted each year due April 30 and October 31 as well as complete quarterly FFR Cash Transaction Reports. Per 2 CFR 200.303, the non-Federal entities receiving federal awards (i.e., auditee management) establish and maintain internal control design to reasonably ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition – During our test work over the LEAP grant, we noted the Organization did not timely file required reports nor were the original reports filed properly reconciled and in agreement with general ledger records. Cause – The Organization's controls to ensure reports are filed timely and accurately were not operating effectively. Effect – Required reports are not being submitted timely or accurately. Questioned Costs – None noted. Context – One out of the two semi-annual reports selected for testing was submitted on December 7, 2022 rather than the due date of October 31. Additionally, the amounts in the reports for cash receipts and disbursements did not reconcile to underlying records for the period. Additionally, management indicated none of the quarterly FFR Cash Transaction Reports were filed. The sample was not intended to be, and was not, a statistically valid sample. Identification as a Repeat Finding, if applicable – Not applicable Recommendation – We recommend the Organization implement a process that includes tracking the timely submission of reports and incorporate a review and reconciliation process to the underlying grant and accounting records. Views of Responsible Official and Planned Corrective Actions – Management agrees with finding. See corrective action plan.