Finding 1225993 (2025-102)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-08-06
Audit: 408657
Organization: Health Access Network, Inc. (ME)

AI Summary

  • Core Issue: Inaccurate reporting of federal cash in annual financial reports submitted to the U.S. Department of Health and Human Services.
  • Impacted Requirements: Compliance with federal and state guidelines for financial reporting under the Community Health Center program.
  • Recommended Follow-Up: Improve controls for tracking and reviewing financial reports to ensure accuracy; management has started a secondary review process.

Finding Text

Accuracy of Reporting: Federal Agency: U.S. Department of Health and Human Services. Award Name: Community Health Centers. Program Year: January 1, 2025 – December 31, 2025. Assistance Listing Number: 93.224. Criteria: The Organization is required to submit annual financial reports to the U.S. Department of Health and Human Services as part of its administration of the Community Health Center program. Condition: During compliance testing, it was identified that federal cash was not accurately reported. Context: The annual financial report was submitted to the U.S. Department of Health and Human Services with incorrect information. Cause: Turnover within the Organization's Finance Department was the cause of inaccurate reporting. Effect: Reports are not submitted in accordance with federal or state guidelines and amounts within the reports were not accurate. Questioned Cost: None. Repeat Finding: This is not a repeat finding. Recommendation: The Organization should enhance controls over the tracking, completion, and review of Community Health Center reporting to ensure that amounts are correctly reported. View of Responsible Parties: Management has implemented a secondary review process over financial reports to ensure that amounts are reported accurately.

Corrective Action Plan

Accuracy of Reporting. Responsible Party: Nicole Glidden, Chief Executive Officer. Management's Views and Corrective Action Plan: During the course of the audit, Baker Newman Noyes identified HAN's SF-425 federal cash amounts were reported inaccurately. Action Plan: The SF-425 was corrected, resubmitted, and approved by HRSA to reflect the accurate federal cash amounts. The annual SF-425 report will be reviewed in detail prior to submission by the CEO and Financial Controller at the close of each year for accuracy.

Categories

Reporting

Programs in Audit

ALN Program Name Expenditures
93.224 HEALTH CENTER PROGRAM $3.73M
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $4,900