Finding Text
Finding 2024-012 Federal Agency: U.S. Department of Health and Human Services Assistance Listing: 93.224 – Health Center Program (Community Health Centers, Migrant Health Center Health Care for the Homeless, and Public Housing Primary Care). Federal Award No.: 4 H8FCS41736-01-02, 4 H8FCS41736-01-03, 1 C8ECS44059-01-06. Area: Reporting Questioned Costs: $0 Criteria: The terms and conditions of the cited awards require annual Federal Financial Reports (SF-425s) that are timely, accurate, complete, and supported by records reflecting cumulative activity for the applicable project period. • 4 H8FCS41736-01-02 the subject FFR was due by 07/30/2024. • 4 H8FCS41736-01-03 the subject FFR was due by 07/30/2025. • 1 C8ECS44059-01-06 the subject FFR was due by 01/30/2025. Condition: The following exceptions were identified: 1) All three SF-425s were submitted after their respective due dates. 2) For award 4 H8FCS41736-01-02, the State did not retain contemporaneous expenditure support demonstrating how reported federal cash disbursements were determined. Cause: Deadline-monitoring controls were ineffective, and the State did not retain a complete contemporaneous reporting package. 1) The State did not effectively monitor SF-425 reporting deadlines. 2) The State did not retain the contemporaneous records used to prepare the reported federal cash disbursement amounts. Effect: The State did not comply with reporting requirements, and the lack of support increased the risk of inaccurate reporting. The audit did not identify an amount expended or received that was affected by the reporting noncompliance; therefore, no questioned costs are reported. 1) Late submission of the SF-425s constituted reporting noncompliance. No negative awarding-agency comments were identified. 2) The absence of contemporaneous support increased the risk of inaccurate reporting and increased the effort required to substantiate reported amounts during audits and monitoring. No questioned costs are reported. Recommendation: The State should: 1) Establish an award-reporting calendar with assigned responsibility and supervisory review, and retain copies of all submissions. 2) Retain the filed SF-425, certification, transaction-level receipt and expenditure detail, and reconciliation to the general ledger as one contemporaneous reporting package. Identification as a Repeat Finding: 2023-007 View of Responsible Officials: The State’s response and corrective action plan addressing this finding is included in the accompanying corrective action plan.