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Finding 2023.004: Reporting - Material Weakness Name of Federal Agency: U.S. Department of Health and Human Services Federal Program Names: Health Center Program Cluster Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) COVID -19 Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) Grants for New and Expanded Services under the Health Center Program COVID-19 Grants for New and Expanded Services under the Health Center Program Federal Assistance Listing Number: 93.224 and 93.527 Federal Award Identification Number and Year: H8026638 - 2022 and 2023, H8F40829 - 2021 and H8G48040-2023 Criteria In accordance with §200.328, Financial Reporting, annual audit reports of recipients of federal funds are required to be submitted to the Federal Audit Clearing House within the earlier of 30 days after the receipt of the audit report or nine months after the end of the audit period. Condition For the year ended June 30, 2023, the Center did not submit their annual audit in accordance with the Uniform Guidance on a timely basis. Cause Due to the turnover in the financial leadership, the ongoing pandemic and the closing of their prior audit firm, the annual audit report was not submitted on time. Effect or Potential Effect The Center did not comply with the appropriate rules and regulations as per the Uniform Guidance and with DHHS grant requirements. Questioned Costs None. Identification of Repeat Finding Yes, see finding 2022.004. Recommendation The Center should establish controls to ensure all accounting records are analyzed and proper support is available in order to ensure that the financial statement audit is submitted on a timely basis to the Federal government. Views of Responsible Officials Management and the Board of Directors agree with the finding and will implement additional controls to ensure all reports are submitted timely in accordance with the Uniform Guidance and DHHS grant requirements.