FAC Explorer

Finding 365 (2022-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-10-17
Audit: 750
Organization: East Liberty Family Health Care Center INC (PA)
Auditor: Louis Plung & Company LLC

AI Summary

  • Core Issue: The Single Audit was not submitted to the Federal Audit Clearinghouse within the required nine-month timeframe.
  • Impacted Requirements: Timely completion and submission of financial statements and audits are essential for compliance.
  • Recommended Follow-Up: Management should enhance reporting processes and internal controls to ensure timely submissions in the future.

Finding Text

Criteria and Condition: Single Audits must be completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the issued auditors’ report. or nine months after the end of the audit period. The Center did not timely complete the Single Audit and submit to the Federal Audit Clearinghouse within nine months form the end of the audit period. Context: Information required to complete the financial statements was not prepared and ready to audit in a timely manner. This resulted in the financial statements and Single Audit to not be finalized and issued in order to be submitted to the Federal Audit Clearinghouse within nine months of the end of the audit period. Effect: The data collection form and reporting package for the Single Audit for the year ended June 30, 2022 were not submitted within the specified timeframe resulting in award drawdown restrictions. Questioned Costs: None Cause: Internal controls over reporting and compliance were not effective at ensuring that the required reports were being completed and submitted in a timely manner. Recommendations: We recommend that management improve their reporting processes and controls to ensure that the Single Audit is completed and submitted to the Federal Audit Clearinghouse in a timely manner. Views of Responsible Officials and Planned Corrective Actions: Management is taking steps to improve the internal controls over financial reporting and compliance to ensure that reporting can be completed in an accurate and timely manner. These changes include updates of internal processes and the hiring of key members of financial management.

Corrective Action Plan

Since taking over the financial management of ELFHCC in December 2022 we have hired an auditing firm (Louis Plung & Company) to perform the 2021, 2022, to be up to date, and the 2023 (now due) to complete all single audit submissions. Moving forward, all audits will be completed before the submission due dates each year.

Categories

Reporting Cash Management

Other Findings in this Audit

  • 363 2022-001
    Material Weakness Repeat
  • 364 2022-002
    Material Weakness Repeat
  • 366 2022-004
    Material Weakness Repeat
  • 576805 2022-001
    Material Weakness Repeat
  • 576806 2022-002
    Material Weakness Repeat
  • 576807 2022-003
    Material Weakness Repeat
  • 576808 2022-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $2.33M
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $607,701