Finding Text
Reporting Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Centers Cluster Assistance Listing Number: 93.224 and 93.527 Federal Award Identification Number: H80CS00824-23-11 Award Periods: May 1, 2024 – April 30, 2025 Type of Finding: Significant deficiency in internal control over compliance Criteria: The Organization is required to submit an annual Uniform Data System (UDS) report to HRSA that is complete, accurate, and supported by underlying records. Per federal requirements, the auditee is responsible for establishing and maintaining effective internal controls over compliance, including controls to ensure the accuracy and completeness of reports submitted to federal agencies. Condition: During our audit procedures, we noted the Organization did not have adequate internal controls related to maintaining supporting documentation for all of the key tables included within the UDS report. Questioned Costs: None. Context: The Organization submitted its annual UDS report, which includes multiple data tables derived from various systems and sources, including billing, electronic health records, and financial records. During our testing, the Organization was not able to provide the necessary documentation to support the amounts reported in Table 8A Lines 1 & 3. Cause: The condition appears to be due to turnover within the finance department and not maintaining the necessary supporting documentation used to prepare the UDS report as filed. Effect: Without adequate controls over reporting, there is an increased risk that reports submitted to the federal awarding agency may be inaccurate or incomplete, which could impact funding, compliance, and federal oversight. Repeat Finding: No. Recommendation: We recommend the Organization implement a comprehensive and thorough process to review reports prior to submission including the reconciliations and underlying records that support the amounts in the report.