Finding 1225391 (2025-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-07-31
Audit: 408346
Organization: Harrington Family Health Center (ME)

AI Summary

  • Core Issue: The organization submitted the FAC filing late, violating 2 CFR §200.512(a)(1).
  • Impacted Requirements: Timely submission of financial reports is essential to avoid noncompliance and potential administrative actions.
  • Recommended Follow-Up: Implement procedures for timely preparation and review of audit reports, ensuring deadlines are monitored closely.

Finding Text

Finding Number: 2025 002 Finding Type: Noncompliance Information on the Federal Program: N/A – Not program specific Criteria: 2 CFR §200.512(a)(1) requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse (FAC) no later than 30 calendar days after receipt of the auditor’s reports or nine months after the end of the audit period, whichever is earlier. Condition: FAC filing for the fiscal year ended March 31, 2025 was submitted after the required deadline. Cause: The Organization did not have effective internal controls to ensure timely and accurate preparation of financial information, including account reconciliations (see prior year Finding 2024-002). As a result, management did not have the information necessary to complete the FAC filing within the timeframe required by 2 CFR §200.512(a)(1). Effect: The late submission of the Single Audit report to the Federal Audit Clearinghouse creates noncompliance with federal reporting requirements and increases the Organization’s risk of administrative actions by federal awarding agencies, including Health Resources and Services Administration (HRSA). This may result in delayed acceptance of federal awards, imposition of grant conditions, or restrictions on access to federal funds until the report is submitted and accepted. Questioned Costs: None Repeat Finding: Yes, 2024 002 Recommendation: The Organization should implement procedures to ensure the Single Audit reporting package is prepared, reviewed, and submitted to the FAC within required timeframes, including monitoring of statutory deadlines Views of a Responsible Official and Corrective Action Plan: Management agrees with the finding. Management is implementing procedures to complete and review account reconciliations and financial reporting on a monthly basis with appropriate oversight. These steps are intended to support timely submission of future Single Audit reporting packages to the FAC+.

Corrective Action Plan

Finding: 2025-002 Condition Found: The FAC filing for the fiscal year ended March 31, 2025, was submitted late. Individual(s) Responsible for Corrective Action: Chief Executive Officer, Fractional CFO, Board of Directors Planned Corrective Action: Management agrees with the finding. Due to the timing of prior year audit completion and associated late filing, the Organization did not have sufficient time within the current audit period to fully implement and demonstrate the effectiveness of corrective actions related to audit timeliness. As a result, this finding has reoccurred. The Organization has strengthened oversight by formalizing a compliance calendar, assigning clear ownership of Single Audit and Federal Audit Clearinghouse deadlines, and incorporating milestone tracking into finance operations and executive oversight processes. In addition, continued fractional CFO support provides enhanced accountability and monitoring of financial reporting timelines. These actions build upon prior year corrective efforts and are designed to ensure timely and compliant filings going forward. Anticipated Completion Date: FY2026 filing cycle.

Categories

Internal Control / Segregation of Duties Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 1225389 2025-002
    Material Weakness Repeat
  • 1225390 2025-002
    Material Weakness Repeat
  • 1225392 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.224 HEALTH CENTER PROGRAM $1.33M
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $232,860
93.527 GRANTS FOR NEW AND EXPANDED SERVICES UNDER THE HEALTH CENTER PROGRAM $31,322