Finding 1216041 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-05-29
Audit: 402571
Organization: Project Vida Health Center (TX)
Auditor: SBNG PC

AI Summary

  • Core Issue: The Organization failed to submit required Financial Status Reports on time for multiple contracts, with delays ranging from 7 to 105 days.
  • Impacted Requirements: Compliance manual and grant agreements mandate submission of Federal and State Financial Reports within specific timeframes (90 days for federal, 60 days for state).
  • Recommended Follow-Up: Management should establish clear procedures and monitoring to ensure all reports are submitted on time, addressing the recent CFO transition and improving internal controls.

Finding Text

Criteria: The compliance manual and grant agreements establish that the Grantee shall submit annual Federal Financial Reports through the Payment Management System (PMS) within 90 days after budget period end date. For State grant, HHSC- Family planning, the grantee shall submit State Financial Report annually no later than 60 days after the end of contract period. Condition: The Organization did not timely submit the required Financial Status Reports for four of the contracts under the Health Center Cluster and the annual State Financial Report for its HHSC – Family Planning state grant: • Health Center Program: Contract No. 22H80CS04287 submitted 10 days late. • FY 2024 Behavioral Health Service Expansion - Contract No. 24H8NCS54010 submitted 7 days late. • COVID-19 - FY2023 Bridge Access Program: Contract No. 23H8LCS51559C6 submitted 29 days late. • Health Center Program Service Expansion: School Based Service Sites (SBSS) - Contract No. 23H2ECS50185 submitted 40 days late. • HHSC – Family Planning: Contract No. HHS000734600041 (State) submitted 105 days late. Cause: The Organization experienced a CFO transition during FY2025. The new CFO is still becoming familiar with compliance and reporting requirements, and internal controls were not adequately designed or operating effectively to ensure timely review, approval, and submission of reports. Effect: Failure to submit required reports in a timely manner may result in sanctions in accordance with the provisions of the grant agreements. Recommendation: Management should implement procedures to ensure timely submission of all required Federal Financial Reports and State Financial Reports, including defined timelines and ongoing monitoring. Management’s response: Management agrees with auditor’s recommendation. Refer to Corrective Action Plan for expected date of completion.

Corrective Action Plan

Views of Responsible Officers: The Interim Chief Financial Officer acknowledges that the Federal Financial Reports (FFRs) were not submitted within the established reporting deadlines. The delay resulted primarily from administrative and staffing challenges, including turnover in key financial personnel and delays in reconciliation of grant expenditures. Proposed Corrective Action: To address the failure to submit all required grant reports by established deadlines, the Organization will implement a corrective action plan focused on strengthening internal controls, accountability, and monitoring procedures. Management will assign designated staff responsible for preparing (Deputy CFO), reviewing, and submitting (CFO) all reports and establish a reporting calendar with automated reminders to ensure timely completion. Additional training will be provided to grants and finance personnel on federal reporting requirements and submission timelines. Supervisory review procedures will be enhanced to verify accuracy and completeness prior to submission, and periodic internal audits will be conducted to monitor compliance. The organization will also develop contingency procedures to address staff absences or unexpected delays to ensure all future reports are submitted accurately and on time in accordance with federal requirement. Name of Contact Person Responsible for Corrective Action: Marisol Rosas (CFO) Anticipated Completion Date: Comprehensive corrective action plan will be prepared by July 15th and implemented by July 31, 2026.

Categories

Reporting

Other Findings in this Audit

  • 1216038 2025-002
    Material Weakness Repeat
  • 1216039 2025-002
    Material Weakness Repeat
  • 1216040 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $584,062
93.516 PUBLIC HEALTH TRAINING CENTERS PROGRAM $486,559
93.224 HEALTH CENTER PROGRAM (COMMUNITY HEALTH CENTERS, MIGRANT HEALTH CENTERS, HEALTH CARE FOR THE HOMELESS, AND PUBLIC HOUSING PRIMARY CARE) $401,706
93.530 TEACHING HEALTH CENTER GRADUATE MEDICAL EDUCATION PAYMENT $346,073
93.297 TEENAGE PREGNANCY PREVENTION PROGRAM $254,233
93.217 FAMILY PLANNING SERVICES $122,036
93.527 GRANTS FOR NEW AND EXPANDED SERVICES UNDER THE HEALTH CENTER PROGRAM $115,228
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $90,462
93.092 AFFORDABLE CARE ACT (ACA) PERSONAL RESPONSIBILITY EDUCATION PROGRAM $21,898
93.185 IMMUNIZATION RESEARCH, DEMONSTRATION, PUBLIC INFORMATION AND EDUCATION TRAINING AND CLINICAL SKILLS IMPROVEMENT PROJECTS $21,794
93.945 ASSISTANCE PROGRAMS FOR CHRONIC DISEASE PREVENTION AND CONTROL $11,941
93.088 ADVANCING SYSTEM IMPROVEMENTS FOR KEY ISSUES IN WOMEN'S HEALTH $11,576
93.917 HIV CARE FORMULA GRANTS $10,831