Finding 1217240 (2025-005)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-06-09

AI Summary

  • Core Issue: The Organization failed to provide accurate supporting documentation for the annual Uniform Data System (UDS) report, leading to potential errors.
  • Impacted Requirements: Compliance with 2 CFR 200.329, which mandates accurate reporting for federal grants.
  • Recommended Follow-Up: Revise policies for federal reporting and maintain proper documentation; engage a third-party accounting firm for process improvement.

Finding Text

Health Center Program Cluster – Assistance Listing Nos. 93.224 and 93.527 U.S Department of Health and Human Services Award No. 5 H80CS00681-23-07, June 1, 2024 – May 31, 2025 Award No. 6 H80CS00681-24-04, June 1, 2025 – May 31, 2026 Criteria or Specific Requirement – Reporting – 2 CFR 200.329 Condition – The Organization is required to prepare and submit an annual Uniform Data System (UDS) for each calendar year for the Health Center Program Cluster. This report is to be prepared using accurate financial information. Cause – The Organization was unable to provide supporting documentation that agreed to the line items tested on the report. Effect or potential effect– Potential errors were made on the annual UDS report. Questioned Costs – None Context – The Organization’s annual UDS report was selected for testing. Of the ten inputs tested, four exceptions were noted related to the annual UDS report. Identification as a repeat finding, if applicable – Not a repeat finding. Recommendation – The Organization should revise polices and procedures over federal reporting to ensure reports are prepared using accurate information and supporting documentation for federal grant reports should be maintained. Views of Responsible Officials and Planned Corrective Actions – Management Response - Management concurs with the auditor's finding. The Organization acknowledges that a mistake was made on Table 9E-Other Revenue, where grant income, from the Early Childhood Development (ECD) grant, was listed in the incorrect location. The ECD grant should have been listed under Federal Grants: UHI Grant Revenue. Additionally, the Organization's UDS preparer, completed a transposition error when entering a salary amount in Table 8A. Corrective Action Planned - Management has engaged with an independent 3rd party accounting firm to review current processes, assist with strengthening internal controls and month-end/year-end closing procedures, and provide assistance in completing the Organization's annual UDS report. Completion Date - Completed 1/1/2026 Responsible Contact Person - Margret Guy, Director of Revenue; Julie Brilley, CEO

Corrective Action Plan

Finding summary – The Organization’s annual UDS report was selected for testing. Of the ten inputs tested, four exceptions were noted as the Organization was unable to provide supporting documentation that agreed to the line items tested on the report. Corrective Action Planned - Management has engaged with an independent 3rd party accounting firm to review current processes, assist with strengthening internal controls and month-end/year-end closing procedures, and provide assistance in completing the Organization’s annual UDS report. Anticipated Completion Date – Completed 1/1/2026 Responsible Contact Person – Margret Guy, Director of Revenue; Julie Brilley, CEO Management Response - Management concurs with the auditor's finding. The Organization acknowledges that a mistake was made on Table 9E-Other Revenue, where grant income, from the Early Childhood Development (ECD) grant, was listed in the incorrect location. The ECD grant should have been listed under Federal Grants: UHI Grant Revenue. Additionally, the Organization’s UDS preparer, completed a transposition error when entering a salary amount in Table 8A.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1217235 2025-003
    Material Weakness Repeat
  • 1217236 2025-004
    Material Weakness Repeat
  • 1217237 2025-005
    Material Weakness Repeat
  • 1217238 2025-003
    Material Weakness Repeat
  • 1217239 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.224 HEALTH CENTER PROGRAM (COMMUNITY HEALTH CENTERS, MIGRANT HEALTH CENTERS, HEALTH CARE FOR THE HOMELESS, AND PUBLIC HOUSING PRIMARY CARE) $2.71M
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $240,280
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $209,863
93.788 OPIOID STR $159,375
93.527 GRANTS FOR NEW AND EXPANDED SERVICES UNDER THE HEALTH CENTER PROGRAM $37,646