Finding Text
Finding Number: 2024-009 Reporting Performance reports not maintained- Material weakness in internal controls, material noncompliance Assistance Listing Number: 93.193 Program Title: Urban Indian Health Services Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: Indian Health Services Criteria: The Uniform Guidance at 2 CFR § 200.302(a) requires non-Federal entities to maintain financial management systems that provide accurate, current, and complete disclosure of financial results for each Federal award. In addition, non-Federal entities must ensure required programmatic (performance) reports are supported by appropriate documentation. Condition: As a result of auditor testing, it was found that NACA did not maintain adequate supporting documentation for performance-related reports submitted to the grantor for the Title V program. Cause: During the year ended December 31, 2024, NACA had limited administrative resources and lacked formal procedures to ensure that performance reporting documentation was retained and properly organized. Effect: Without sufficient supporting documentation, NACA is at increased risk of noncompliance with Federal reporting requirements, and there is reduced transparency and accountability over reported program performance. Recommendation: We recommend that NACA strengthen internal controls over performance reporting by implementing procedures to retain supporting documentation for all submitted reports and establishing a review process to ensure completeness and accuracy. Views of responsible officials: NACA concurs with the recommendation.