FAC Explorer

Finding 394060 (2022-003)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2024-04-22
Audit: 304170
Organization: Agape Community Health Center, Inc. (FL)
Auditor: Darryl R Jackson CPA P A

AI Summary

  • Core Issue: Inadequate internal controls led to a 5% error rate in disbursements due to missing backup and approvals.
  • Impacted Requirements: The disbursement system failed to ensure proper approvals and support for all expenditures.
  • Recommended Follow-Up: Strengthen internal controls and training to reduce turnover and ensure compliance with approval processes.

Finding Text

Criteria: In order to maintain the proper internal controls regarding the processing of invoices, the disbursements system should require proper approvals and support for disbursements. Condition: The Organization had expenditures with no backup to support the disbursement. This resulted in a 5% error rate. Also, the Organization had several disbursements that had backup support; however, there was no approval of the disbursement. Cause: Accounting staff turnover at the Organization. Effect: The lack of proper controls increases the risk of error, fraud, misappropriation of assets and inaccurate financial reporting. Questioned Cost: None

Corrective Action Plan

Actions Planned: The Organization will hire additional accounting staff that has both the experience and education to provide the Organization with proper accounting and finance expertise on overseeing the disbursement process.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 394058 2022-001
    Significant Deficiency
  • 394059 2022-002
    Significant Deficiency Repeat
  • 394061 2022-004
    Significant Deficiency
  • 394062 2022-005
    Significant Deficiency Repeat
  • 970500 2022-001
    Significant Deficiency
  • 970501 2022-002
    Significant Deficiency Repeat
  • 970502 2022-003
    Significant Deficiency
  • 970503 2022-004
    Significant Deficiency
  • 970504 2022-005
    Significant Deficiency Repeat

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) $1.48M
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $681,332