Finding Text
Finding 2025-006: Reporting – Material Weakness Name of Federal Agency: U.S. Department of Health and Human Services U.S. Department of Agriculture Federal Program Names: Health Center Program Cluster Health Center Program Cluster (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) WIC Special Supplemental Nutrition Program for Women, Infants, and Children Federal Assistance Listing Number: 93.224 and 10.557 Federal Award Identification Number and Year: H800344 – 2024 through 2026, 256TX507Q1003 for all programs except for PEER program – 2025, 256TX527Q5003 and 246TX527W5003 for PEER program - 2025 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. Also, recipients are required to submit accurate and timely financial and programmatic reports, including Federal Financial Reports, progress reports, and other performance reports. Condition and Context: During the audit, it was identified two out of seven tested reports were remitted one day later than the report deadline, and the annual single audit reporting package was remitted after the nine months of the District fiscal year end September 30, 2025. Cause: The District lacks timely review of the associated documentation in order to make sure the required reports are remitted on time. This deficiency was compounded by the significant turnover in key accounting and finance personnel identified in the prior year and during the audit process, which prevented the District to timely review. Effect or Potential Effect: Untimely reporting increases the risk of noncompliance with federal requirements, may subject the District to additional scrutiny by grantor agencies, and could adversely affect the District's eligibility for low-risk auditee status in future Single Audits. Questioned Costs: None. Recurring Finding: No. (New finding for the fiscal year ended September 30, 2025). Recommendation: We recommend the District strengthen its internal controls over compliance reporting by implementing procedures to monitor reporting deadlines, establish documented supervisory reviews before due dates, and maintain a reporting calendar with assigned responsibilities and backup personnel. View of Responsible Officials: Management acknowledges the finding and is committed to strengthening its review process.