Finding Text
Finding No. 2025‐004: Reporting – Material weakness in internal control over compliance and compliance finding 93.917 HIV Care Formula Grant (Ryan White Part B) Criteria: In accordance with 45 CFR 75 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, Subrecipient will develop, implement and maintain financial management and control systems, which include at a minimum accurate payroll, accounting and financial reporting records, cost source documentation, effective internal and budgetary controls, and determination of reasonableness, allowability and allocability of costs, and timely and appropriate audits and resolution findings. Condition: For 4 of 6 requests for reimbursements (RFRs), we were unable to reconcile the reimbursement amounts per the RFR totals to the grant general ledger. In total, the net of the four RFRs, the expenses per the grant RFRs were less than expenses per the grant general ledger. Cause: The Organization experienced turnover in accounting management at the beginning of 2025 responsible for the preparation and submission of the RFRs. Effect: The Organization’s controls over the grant RFR process were not sufficiently implemented to avoid the risk of noncompliance related to proper recordkeeping for reporting documentation. Questioned costs: None Recommendation: The Organization should maintain documentation of all allowable costs included on the grant RFRs in the grant general ledger. Management’s Response: See corrective action plan.