Finding 1229567 (2025-005)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-09-11
Audit: 410860
Organization: Family Health Centers, Inc. (SC)
Auditor: TERRY HORNE CPA

AI Summary

  • Core Issue: Incorrect amounts were reported in the Federal Financial Reports (FFR) for 3 grants related to federal expenditures.
  • Impacted Requirements: Compliance with Uniform Guidance for accurate reporting of federal financial data.
  • Recommended Follow-Up: Implement a review process for FFR filings by someone other than the preparer before submission to ensure accuracy.

Finding Text

Material Weakness Finding: 2025-005 Reporting Federal Programs: Department of Health and Human Services Health Center Program Cluster Assistance Listing No. - 93.224 and 93.527 Nurse Education, Practice Quality and Retention Grants Assistance Listing No. - 93.359 Criteria: Uniform Guidance, Reporting – Federal Financial Report Condition: For 3 grants, the Federal Financial Reports (FFR) submitted to the Department of Health and Human Services (DHHS) during the fiscal year ended December 31, 2025 contained incorrect amounts for the federal share of expenditures. Cause: The Organization did not submit accurate FFR filings for 3 grants. Effect: The federal share of expenditures were not correctly reported in 3 FFR filings. Questioned Costs: None reported Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: Yes Recommendation: It is recommended that the FFR filings be reviewed by a person other than the preparer of the report prior to submission to ensure accurate reporting. Views of Responsible Officials: Management concurs. Procedures will be established to ensure that FFR filings are reviewed in order to ensure that they are accurately filed. Contact Person: Ernest J. Stan Wardlaw, CEO Anticipated Date of Completion: September 30, 2026

Corrective Action Plan

In Finding 2025-005, a finding reported that the Organization did not submit timely or accurate FFR filings. In response to Finding 2025-005, Management recognizes the importance of complying with federal reporting guidelines and has filed timely and corrected previous FFRs starting in 2026.

Categories

Reporting

Other Findings in this Audit

  • 1229564 2025-005
    Material Weakness Repeat
  • 1229565 2025-005
    Material Weakness Repeat
  • 1229566 2025-005
    Material Weakness Repeat
  • 1229568 2025-006
    Material Weakness Repeat
  • 1229569 2025-006
    Material Weakness Repeat
  • 1229570 2025-006
    Material Weakness Repeat
  • 1229571 2025-006
    Material Weakness Repeat
  • 1229572 2025-007
    Material Weakness Repeat
  • 1229573 2025-007
    Material Weakness Repeat
  • 1229574 2025-007
    Material Weakness Repeat
  • 1229575 2025-008
    Material Weakness Repeat
  • 1229576 2025-008
    Material Weakness Repeat
  • 1229577 2025-008
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.359 NURSE EDUCATION, PRACTICE QUALITY AND RETENTION GRANTS $1.05M
93.527 AFFORDABLE CARE ACT (ACA) GRANTS FOR NEW AND EXPANDED SERVICES UNDER THE HEALTH CENTER PROGRAM $318,364
10.175 FARMERS MARKET AND LOCAL FOOD PROMOTION PROGRAM (B) $95,408
93.224 CONSOLIDATED HEALTH CENTERS (COMMUNITY HEALTH CENTERS, MIGRANT HEALTH CENTERS, HEALTH CARE FOR THE HOMELESS, AND PUBLIC HOUSING PRIMARY CARE) $75,584
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES_PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $24,575