Finding 370885 (2022-002)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2024-02-28
Audit: 292567
Organization: Visiting Nurse Services of Iowa (IA)
Auditor: Rsm US LLP

AI Summary

  • Core Issue: The Organization inaccurately reported federal expenditures under the wrong assistance listing numbers (ALNs) due to weak internal controls.
  • Impacted Requirements: The Organization must prepare a Schedule of Expenditures of Federal Awards (SEFA) that accurately reflects total federal awards as per Uniform Guidance.
  • Recommended Follow-Up: The CFO and Finance and Accounting Director should conduct a thorough review of the SEFA, focusing on ALNs and any contract addendums from pass-through agencies.

Finding Text

U.S. Department of Health and Human Services Passed through Iowa Department of Public Health ALNs 93.994, 93.778, 93.575, 93.767 and 93.991 Finding: The Organization did not accurately report certain expenditures of federal awards under the correct assistant listing numbers (ALNs), and did not have sufficient internal controls over financial reporting to ensure the SEFA is properly presented. Criteria: The Organization must prepare a SEFA for the period covered by the Organization’s financial statements, which must include the total Federal awards expended in accordance with requirements in the Uniform Guidance. This requires presentation of a schedule of federal expenditures of federal awards, appropriately identifying required elements as defined in the Uniform Guidance. This includes reporting the awards under the appropriate assistance listing number (ALN). Condition and context: The accompanying schedule of expenditures of federal awards was restated to correct the expenditures previously reported for ALNs 93.994, 93.778, 93.575, 93.767 and 93.991. Effect: Improper reporting of federal expenditures could impact future funding from granting agencies. Cause: Management’s preparation and review of the SEFA did not timely identify that a contract addendum and related information from the pass-through entity was necessary to properly allocate expenditures of federal awards under certain contracts with Iowa Department of Public Health (IDPH), which has now been renamed the Department of Health and Human Services by passage of Senate File 514 by the General Assembly of the State of Iowa, among various ALNs. Questioned costs: None. Recommendation: We recommend that the Chief Financial Officer and Finance and Accounting Director perform a detailed review the SEFA, including a review of ALNs used and contract addendums received from or posted by the pass-through agencies.

Categories

Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.926 Healthy Start Initiative $1.13M
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $342,955
94.016 Senior Companion Program $301,439
93.778 Medical Assistance Program $245,525
93.600 Head Start $223,797
84.181 Special Education-Grants for Infants and Families $89,467
93.991 Preventive Health and Health Services Block Grant $12,097
93.994 Maternal and Child Health Services Block Grant to the States $9,371
93.767 Children's Health Insurance Program $5,066
93.575 Child Care and Development Block Grant $2,036