Finding 1224500 (2021-010)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2026-07-23
Audit: 407750
Auditor: CBIZ CPAS PC

AI Summary

  • Core Issue: QCHC failed to submit required reports on time, indicating a lack of management oversight.
  • Impacted Requirements: The Uniform Guidance mandates timely submission of the reporting package and Data Collection Form, which were not met.
  • Recommended Follow-Up: Management should establish procedures to ensure timely filing of federal reports and document the review and approval process before submission.

Finding Text

Finding 2021-010: Reporting – Lack of Management Oversight to Ensure the Timely Submission of Reporting Package and Data Collection Form – Material Weakness in Internal Controls Over Compliance ALN 93.224 – Consolidated Health Centers; Grant Numbers H8GCS48610 and H8OCS00687; Grant Period: August 1, 2020 – July 31, 2021 CRITERIA The Uniform Guidance requires the reporting package and Data Collection Form be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from the auditors or nine months after the end of the audit period. Additionally, in accordance with the grant agreement, QCHC must submit an annual Uniform Data System Report within 45 days of the reporting period end and Federal Financial Report within 90 days of the budget end date. CONDITION AND CONTEXT QCHC was required to submit the reporting package and the Data Collection Form for the year ended July 31, 2021, by April 30, 2022. This filing remains outstanding. QCHC was unable to provide evidence that the Uniform Data System Report and the Federal Financial Report were prepared and submitted. CAUSE QCHC experienced issues with its accounting software and turnover within its accounting leadership, which had a direct impact on the financial reporting process which precipitated delinquency in commencing and completing the fiscal year 2021 audit and ensuring the completion and submission of the required reports in a timely manner. EFFECT OR POTENTIAL EFFECT The late submission of the reporting package affects all Federal programs administered by QCHC. QUESTIONED COST None REPEAT FINDING Yes (2020-005) RECOMMENDATION We recommend that management implement procedures to ensure that all federal reports are filed by the required due dates. We also recommend that management implement a process of formally documenting the review and approval of reports prior to submission. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION See the attached response and corrective action plan.

Corrective Action Plan

Criteria The Uniform Guidance requires the reporting package and Data Collection Form be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from the auditors or nine months after the end of the audit period. Additionally, in accordance with the grant agreement, QCHC must submit an annual Uniform Data System Report within 45 days of the reporting period end and Federal Financial Report within 90 days of the budget end date. Condition and Context QCHC was required to submit the reporting package and the Data Collection Form for the year ended July 31, 2021, by April 30, 2022. This filing remains outstanding. QCHC was unable to provide evidence that the Uniform Data System Report and the Federal Financial Report were prepared and submitted. Recommendation We recommend that management implement procedures to ensure that all federal reports are filed by the required due dates. We also recommend that management implement a process of formally documenting the review and approval of reports prior to submission. Views of Responsible Officials and Planned Corrective Actions QCHC acknowledges the finding and has implemented the following corrective actions: 1. QCHC has engaged HRSA-supported fiscal technical assistance to assist with audit remediation, financial reporting, internal controls, and grant compliance. 2. QCHC has implemented the Accounting Manual of Policies (Section 317 - Financial Reporting) which requires that the Accounting Manager maintain supporting records in sufficient detail to prepare the organization's financial reports, including Federal Financial Reports. 3. QCHC has established a process for formally documenting the review and approval of all federal reports prior to submission, including the Uniform Data System Report and Federal Financial Report. 4. QCHC has implemented a system to track all federal report due dates and ensure timely submission in accordance with grant requirements and the Uniform Guidance. 5. QCHC has established the Schedule of Expenditures of Federal Awards (SEFA) preparation process in accordance with the Uniform Guidance requirements.

Categories

Reporting Internal Control / Segregation of Duties Material Weakness

Other Findings in this Audit

  • 1224497 2021-009
    Material Weakness Repeat
  • 1224498 2021-009
    Material Weakness Repeat
  • 1224499 2021-010
    Material Weakness Repeat
  • 1224501 2021-011
    Material Weakness Repeat
  • 1224502 2021-011
    Material Weakness Repeat
  • 1224503 2021-012
    Material Weakness Repeat
  • 1224504 2021-012
    Material Weakness Repeat
  • 1224505 2021-013
    Material Weakness Repeat
  • 1224506 2021-013
    Material Weakness Repeat
  • 1224507 2021-014
    Material Weakness Repeat
  • 1224508 2021-014
    Material Weakness Repeat
  • 1224509 2021-015
    Material Weakness Repeat
  • 1224510 2021-015
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.224 HEALTH CENTER PROGRAM $3.13M