Finding 1225495 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-07-31

AI Summary

  • Core Issue: Lack of a formal process to review reports before submission, leading to potential errors.
  • Impacted Requirements: Non-compliance with 2 CFR 200.303, which mandates effective internal controls over federal awards.
  • Recommended Follow-Up: Implement a review process for all required reports to ensure accuracy prior to submission.

Finding Text

Federal Agency: U.S Department of Health and Human Services Federal Program Name: Health Center Program Cluster Assistance Listing Number: 93.224 and 93.527 Award Period: 03/01/24-02/28/27 Federal Program Name: Congressionally Directed Spending for Construction Projects Assistance Listing Number: 93.493 Award Period: 09/03/23-09/29/26 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR 200.303 requires that recipients and subrecipients receiving federal awards establish, document and maintain effective internal control over the federal awards that provides reasonable assurance that the recipient or subrecipient is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition: There is no formal process in place to review required reports prior to submission. Context: During our audit inquiries related to internal control, it was noted that the Organization is not practicing a key control of their internal control structure by reviewing reports prior to submission to the relevant granting authority. Cause: Following recent staff turnover, an internal policy was not maintained and/or adhered to. Effect: Potentially submitted reports may contain errors or provide misinformation. Recommendation: We recommend the organization review all required reports for accuracy prior to submission. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Action taken in response to finding: The organization has implemented a procedure to review and approve required reports prior to submission.

Categories

Subrecipient Monitoring Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1225491 2025-001
    Material Weakness Repeat
  • 1225492 2025-001
    Material Weakness Repeat
  • 1225493 2025-002
    Material Weakness Repeat
  • 1225494 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $5.09M
93.493 CONGRESSIONAL DIRECTIVES $2.08M
93.224 HEALTH CENTER PROGRAM $1.53M
93.527 GRANTS FOR NEW AND EXPANDED SERVICES UNDER THE HEALTH CENTER PROGRAM $33,265