Finding Text
Federal Agency: U. S. Department of Health and Human Services Cluster: Health Centers Clusters AL No.: 93.224 & 93.527 Program Title: Community Health Centers & Affordable Care Act (ACA) Grants for New and Expanded Services Under the Health Center Program Area: Reporting Repeat Finding from Prior Audit? Yes Finding Type: Material Weakness in Internal Control over Compliance Questioned Cost: $0.00 Criteria: Under Uniform Guidance (2 CFR §200.328), non-federal entities are required to submit complete, accurate, and timely financial and performance reports in accordance with federal award terms and conditions. Condition: The following SF-425, Federal Financial Reports for the reporting period ended March 31, 2023, were submitted after the required deadline of 90 days following the reporting period end date: AL No. Grant No. Reporting Date Date Submitted 93.224 21H8FCS41048C6 3/31/2023 7/27/2023 93.224 22H80CS31624 3/31/2023 8/3/2023 93.527 23H8GCS48480 11/30/2023 4/3/2024 Cause: Federal reporting requirements, including SF-425 and Uniform Data System (UDS) reporting, were not adequately monitored, documented, or retained. This condition was exacerbated by significant turnover in accounting and executive management and the absence of a formal turnover of federal reporting responsibilities and supporting records. Effect: Late submission of required federal financial reports and the absence of required UDS reporting documentation limit Kagman Community Health Center, Inc.’s ability to demonstrate compliance with federal reporting requirements. Recommendation: Kagman Community Health Center, Inc. should strengthen internal controls over federal reporting by: 1. Establishing procedures to track and monitor all federal financial and special reporting requirements, including SF-425 deadlines. 2. Implementing supervisory review procedures to verify the accuracy, completeness, and timeliness of federal reports prior to submission. 3. Establishing formal turnover and documentation procedures to ensure continuity of federal reporting responsibilities during personnel changes. Views of the Officials: Kagman Community Health Center, Inc.’s response is documented in the corrective action plan.