Finding 1208594 (2024-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-04-23

AI Summary

  • Core Issue: The entity submitted incorrect financial information in the HCP report, violating federal requirements.
  • Impacted Requirements: Compliance with U.S. Department of Health and Human Services reporting standards was not achieved.
  • Recommended Follow-up: Implement stronger internal controls for accurate financial reporting and consider corrective actions for 2025.

Finding Text

HCP Reporting Accuracy Federal Program: Assistance Listing 93.224 – COVID-19 – Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) Criteria: As required by the U.S. Department of the Health and Human Services, recipients of Heath Center Program (HCP) Funds must submit periodic reports of accurate financial information to ensure transparency and accountability in the use of funds. Condition: The entity submitted materially incorrect financial information in the Uniform Data System Report. Cause: The error was attributed to insufficient internal controls over federal award reporting. Specifically, there was a lack of a formal process to reconcile financial information from the accounting systems to the HCP report. Effect: HCP grant requirements set forth by the U.S. Department of the Treasury were not met. Recommendation: Management should implement robust internal controls to ensure compliance with all federal reporting requirements. Management’s Recommendation: The Center concurs with the recommendation and is considering corrective action for 2025.

Corrective Action Plan

Management will establish a formal reconciliation process between the general ledger and all federal reports prior to submission. This will include documented review procedures, supervisory approval, and the use of standardized reconciliation templates. Staff will be trained on reporting accuracy requirements, and periodic internal reviews will be conducted to ensure financial data integrity and compliance.

Categories

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1208593 2024-002
    Material Weakness Repeat
  • 1208595 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.224 HEALTH CENTER PROGRAM $5.72M
93.917 HIV CARE FORMULA GRANTS $1.87M
93.526 MENTAL HEALTH DISASTER ASSISTANCE AND EMERGENCY MENTAL HEALTH: MENTAL HEALTH $319,980
93.527 GRANTS FOR NEW AND EXPANDED SERVICES UNDER THE HEALTH CENTER PROGRAM $29,243