Finding 35848 (2022-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2022

Accepted

2023-05-03

Audit: 32559

Organization: Infinity Health (IA)

Auditor: Cliftonlarsonallen LLP

AI Summary

Core Issue: The organization failed to provide adequate documentation for financial data reported in the UDS report due to operational disruptions caused by a flood.
Impacted Requirements: Compliance with 2 CFR 200.329(b) and 2 CFR 200.334 regarding financial reporting and record retention was not met.
Recommended Follow-Up: Implement a robust documentation recovery plan and ensure compliance with federal reporting requirements to prevent future issues.

Finding Text

Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Center Program Assistance Listing Number: 93.224/93.527 Federal Award Identification Number: H80CS04200-17-01 and H80CS04200-18.01 Award Periods: May 1, 2021 ? April 30, 2022; May 1, 2022 ? April 30, 2023 Type of Finding: Compliance and Significant deficiency in internal control over compliance Criteria: 2 CFR 200.329(b) requires the Federal awarding agency to use OMB approved common information collections, when providing financial and performance reporting information. As appropriate and in accordance with above mentioned information collections, the Federal awarding agency must require the recipient to relate financial data and accomplishments to performance goals and objectives of the Federal award. In addition, OMB Compliance Supplement Part IV for assistance listing number 93.224/93.527 has designated key line items within the Uniform Data System (UDS) report. 2 CFR 200.334 indicates that financial records, supporting documents, statistical records, and all other non-Federal entity records pertinent to a Federal award must be retained for a period of three years from the date of submission of the final expenditure report or, for Federal awards that are renewed quarterly or annually, from the date of the submission of the quarterly or annual financial report, respectively, as reported to the Federal awarding agency. Condition: The organization was not able to provide sufficient supporting documentation for amounts reported in Table 8A of the UDS report for calendar year 2021. Questioned Costs: None. Context: Two (2) of Seven (7) key line items tested. Cause: During the time in which the UDS report was being prepared, the organization experienced a flood at its corporate headquarters resulting in disruption of operations. As the preparation of the UDS report occurred during the aforementioned disruption, the applicable supporting documentation for two of the key line items within the UDS report, were not saved and/or maintained in electronic format in order to allow for ease of recovery.

Corrective Action Plan

United States Department of Health and Human Services Infinity Health respectfully submits the following corrective action plan for the year ended November 30, 2022. Audit period: December 1, 2021 ? November 30, 2022 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS?FINANCIAL STATEMENT AUDIT None FINDINGS?FEDERAL AWARD PROGRAMS AUDITS United States Department of Health and Human Services 2022-001 Reporting ? Assistance Listing No. 93.224/93.527 Recommendation: We recommend that multiple members of management be involved in the preparation and review process of the UDS report, and that supporting documentation, which agrees to the amounts in the report, be saved in a manner which allows for easy access and recovery if needed. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: We believe the inability to provide sufficient supporting documentation for the 2021 UDS report to be an anomaly due to the extenuating circumstance of a flood that closed Infinity Health?s main administrative building during the preparation of the 2021 UDS report. The preparation of the 2022 UDS report was completed by the CEO, CFO, COO and Director of Quality and Efficiency. All supporting documentation has been reviewed and saved on a network drive that allows for easy access, recovery and back up retrieval if necessary. Name(s) of the contact person(s) responsible for corrective action: Samantha Cannon, CEO, and Michelle Leonard, CFO. Planned completion date for corrective action plan: 4/26/2023

Other Findings in this Audit

35849 2022-001

Significant Deficiency
35850 2022-001

Significant Deficiency
612290 2022-001

Significant Deficiency
612291 2022-001

Significant Deficiency
612292 2022-001

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
93.527	Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program	$1.66M
93.829	Section 223 Demonstration Programs to Improve Community Mental Health Services	$1.13M
93.958	Block Grants for Community Mental Health Services	$78,273
93.224	Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care)	$18,553