FAC Explorer

Finding 390720 (2023-002)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-03-31
Audit: 301407
Organization: Blue Ridge Area Health Education Center, Inc. (GA)
Auditor: Rl Jennings & Associates PC

AI Summary

  • Core Issue: The Organization is using a cash basis for its general ledger instead of the required accrual basis, leading to potential inaccuracies in financial reporting.
  • Impacted Requirements: This practice violates GAAP, which mandates that financial statements reflect an accrual basis for accurate reporting.
  • Recommended Follow-Up: Implement procedures to maintain accrual records throughout the year, with adjustments made at year-end to ensure compliance.

Finding Text

U.S. Department of Health and Human Services Health Resources and Services Administration Health Care Center Program CFDA 93.224 2023-02: Maintenance of the General Ledger Criteria: The Organization is responsible for preparing annual financial statements in accordance with generally accepted accounting principles (GAAP). The records should be kept on an accrual basis to ensure accurate financial information is being reported to prevent critical financial decisions from being made on erroneous data. Condition: The Organization currently maintains its general ledger on the cash basis throughout the year. Failure to record accruals of revenue and expenditures distorts the financial information that is provided to management and the Board. Effect: Misleading financial information could be presented, which could lead to financial decisions being made on erroneous data. Cause: There are no procedures in place to ensure records are kept on an accrual basis. Identification of a repeat finding: No. Recommendation: We recommend that the Organization implement a procedure in which records are kept on the cash basis throughout the year and accrual adjustments be made at year end. Views of responsible officials and planned corrective actions: The Organization agrees with this finding and will adhere to the corrective action plan on page 32 in this audit report.

Corrective Action Plan

2023-02: Maintenance of the General Ledger Name of contact person: Caroline Aultman, Executive Director Corrective Action: The books and records of the Organization will continue to be kept on a cash basis throughout the year, with accruals for any receivables and payables, and any other accruals be made at year end to ensure accurate reporting. Proposed completion date: The Board will implement the above procedure immediately.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 390719 2023-001
    Significant Deficiency
  • 390721 2023-003
    Significant Deficiency
  • 390722 2023-004
    Significant Deficiency
  • 390723 2023-005
    Material Weakness
  • 967161 2023-001
    Significant Deficiency
  • 967162 2023-002
    Significant Deficiency
  • 967163 2023-003
    Significant Deficiency
  • 967164 2023-004
    Significant Deficiency
  • 967165 2023-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $587,709
93.107 Area Health Education Centers Point of Service Maintenance and Enhancement Awards $379,129