Finding 44202 (2022-004)

Department of Agriculture Federal Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Preparation of the Schedule of Expenditures of Federal Awards Material Weakness in Internal Control Over Compliance - Other Criteria: A properly designed system of internal control over financial reporting includes the ability to prepare the schedule of expenditures of federal awards (the schedule) that are materially correct and include all required disclosures. Condition: The Health Center does not have an internal control system designed to provide for the preparation of the schedule of expenditures of federal awards being audited. We were also requested to draft the schedule. Cause: The Health Center has limited staff to prepare the schedule. Effect: There is a reasonable possibility that the Health Center would not be able to draft the schedule that is correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Eide Bailly drafted the schedule. Repeat Finding from Prior Years: Yes Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, it is important that the Health Center is aware of this condition for financial reporting purposes. Management and the board of directors should continually be aware of the financial accounting and reporting of the Health Center and changes in the accounting and reporting requirements. Views of Responsible Officials: Management agrees with the finding.