Finding 384371 (2022-003)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-03-25
Audit: 297486
Organization: The City of Frederick, Maryland (MD)
Auditor: Brown Plus

AI Summary

  • Core Issue: There is a material weakness in internal controls, leading to discrepancies between reported amounts and supporting documentation for federal programs.
  • Impacted Requirements: Supporting documentation must match reported amounts on all federal program reports, including the UDS and FFR.
  • Recommended Follow-Up: Ensure all supporting documentation is maintained, provide training on patient data software, and document methods for financial reporting extraction.

Finding Text

Federal Agency: Department of Health and Human Services Federal Program: 93.224 Health Center Program Identification Numbers: H80CS29007 H8DCS36329 H8ECS38904 H8FCS41132-01-00 Requirement: Reporting Type of Finding: Material weakness in internal control over major program; Noncompliance Criteria: Supporting documentation should match the amounts reported on all reports required to be filed for federal programs. Condition: Supporting documentation for key line items on the Uniform Data System (UDS) report and Federal Financial Report (FFR) did not match the reported amounts. Cause: Review and approval of grant reporting did not take place at the level needed to support accurate federal reporting. Also, the Health Center experienced a high volume of employee turnover. Effect: Misinformation presented to the federal government may lead to federal inquiries of those charged with governance. Context: The supporting documentation for the reports selected for testing (five FFRs and one UDS report) did not tie into the amounts reported on the FFRs and UDS. Also, the information could not be recreated by current staff at the Health Center. Amounts in the general ledger did not support the financial data for the varying reporting periods utilized in preparation of the reports. Recommendation: The Health Center should maintain any and all support utilized in the preparation of federal reports. We also recommend that Health Center staff receive proper training on the patient data software so that they are able to run reports that are necessary for the UDS reports. Documentation of the methods utilized to extract activity from the general ledger for financial reporting should also be maintained. Views of Responsible Official(s) and Planned Corrective Actions: See corrective action plan.

Corrective Action Plan

The Health Center has put new processes in place to maintain support for federal reports. The Allscripts subscription coding has been improved so reports align with reporting needs.

Categories

Reporting

Other Findings in this Audit

  • 384370 2022-002
    Significant Deficiency Repeat
  • 384372 2022-004
    Significant Deficiency Repeat
  • 384373 2022-005
    Significant Deficiency Repeat
  • 384374 2022-006
    Significant Deficiency
  • 384375 2022-007
    Material Weakness
  • 384376 2022-008
    Material Weakness
  • 384377 2022-009
    Material Weakness
  • 384378 2022-010
    Material Weakness
  • 384379 2022-011
    Significant Deficiency
  • 384380 2022-012
    Material Weakness
  • 384381 2022-013
    Significant Deficiency
  • 384382 2022-014
    Significant Deficiency
  • 384383 2022-015
    Material Weakness
  • 384384 2022-016
    Significant Deficiency
  • 384385 2022-017
    Significant Deficiency
  • 960812 2022-002
    Significant Deficiency Repeat
  • 960813 2022-003
    Material Weakness
  • 960814 2022-004
    Significant Deficiency Repeat
  • 960815 2022-005
    Significant Deficiency Repeat
  • 960816 2022-006
    Significant Deficiency
  • 960817 2022-007
    Material Weakness
  • 960818 2022-008
    Material Weakness
  • 960819 2022-009
    Material Weakness
  • 960820 2022-010
    Material Weakness
  • 960821 2022-011
    Significant Deficiency
  • 960822 2022-012
    Material Weakness
  • 960823 2022-013
    Significant Deficiency
  • 960824 2022-014
    Significant Deficiency
  • 960825 2022-015
    Material Weakness
  • 960826 2022-016
    Significant Deficiency
  • 960827 2022-017
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
20.106 Airport Improvement Program $4.76M
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $1.39M
93.137 Community Programs to Improve Minority Health Grant Program $985,426
59.075 Shuttered Venue Operators Grant Program $807,851
10.558 Child and Adult Care Food Program $805,355
93.568 Low-Income Home Energy Assistance $780,504
14.231 Emergency Solutions Grant Program $660,699
21.027 Coronavirus State and Local Fiscal Recovery Funds $415,035
93.569 Community Services Block Grant $407,287
14.267 Continuum of Care Program $182,884
14.218 Community Development Block Grants/entitlement Grants $151,936
81.042 Weatherization Assistance for Low-Income Persons $133,099
93.150 Projects for Assistance in Transition From Homelessness (path) $74,103
16.738 Edward Byrne Memorial Justice Assistance Grant Program $70,867
95.001 High Intensity Drug Trafficking Areas Program $58,844
16.745 Criminal and Juvenile Justice and Mental Health Collaboration Program $27,718
10.559 Summer Food Service Program for Children $16,751
93.499 Low Income Household Water Assistance Program $16,206
97.067 Homeland Security Grant Program $9,802
20.616 National Priority Safety Programs $9,148
21.026 Homeowner Assistance Fund $7,726
21.016 Equitable Sharing $6,000
20.600 State and Community Highway Safety $5,838
66.466 Chesapeake Bay Program $3,675