Finding Text
Finding Type: Internal Control Over Compliance – Other Information on the Federal Programs: Federal Agency: U.S. Department of Health and Human Services Assistance Listing Number: 93.224 and 93.527 Federal Program Name: Health Center Program Federal Award Periods: May 1, 2023 – April 30, 2024 May 1, 2024 – April 30, 2025 Federal Awards: 22H80CS08230, 23H8LCS51011C6, 23H8GCS48313 Federal Agency: U.S. Department of Health and Human Services Assistance Listing Number: 93.526 Federal Program Name: Grants for Capital Development in Health Center Federal Award Periods: September 15, 2021 – September 14, 2024 Federal Awards: C8ECS43699 Criteria: General journal entries are part of Northeast Washington County Community Health, Inc.’s financial reporting system and are prepared to allocate costs, including payroll and related costs, to record grant billings and receivables, and to reconcile accounts as needed. Condition Found and Context: When performing testing related to general journal entries, there were six entries that were related to the recognition of third-party revenues (including pharmacy, dental and medical) that did not have documented review and approval. While the entries appear allowable and reasonable, there is no formal approval process for the journal entries posted. Cause and Effect: The lack of a formal approval process could lead to errors in financial reporting and revenue recognition. Recommendation: Management should create a formal policy that incorporates a journal entry review and documentation of that review.