FAC Explorer

Finding 478076 (2022-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2024-07-10
Audit: 314809
Organization: Community Health Council of Wyandotte County (KS)
Auditor: Uhy - LLP

AI Summary

  • Core Issue: The Organization failed to submit the Schedule of Expenditures of Federal Awards (SEFA) and data collection form on time, violating federal regulations.
  • Impacted Requirements: Compliance with 2 CFR 200.512 and 2 CFR 200.501, which mandate timely completion and submission of audit reports and related forms.
  • Recommended Follow-Up: Strengthen internal controls, ensure SEFA is reviewed before auditor submission, and integrate SEFA preparation into the monthly closeout checklist.

Finding Text

Finding Type - Material weakness relative to timely reporting of the schedule of expenditures of federal awards ("SEFA") and associated data collection form on reporting for single audits. Criteria - Per 2 CFR 200.512 (a) (1 ), the audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Per 2 CFR 200.501 (b), a non-Federal entity that expends $750,000 or more during the non-Federal entity's fiscal year in Federal awards must have a single audit conducted in accordance with§ 200.514. Condition - The data collection form was not submitted within the required time as required by 2 CFR 200.512. Context - In fiscal year 2022, the Organization had $1,631,922 in expenditures under various federal awards to report on the Schedule of Expenditures of Federal Awards ("SEFA"). The Organization did not have the single audit completed within the Uniform Guidance required timeframe. Cause/Effect - The Organization's controls were not adequate to ensure compliance with federal statutes, regulations, and Uniform Guidance requirements. Recommendation - We recommend the Organization strengthen internal controls and evaluate or monitor compliance with federal statutes, regulations, and the terms and conditions of their awards. In addition, we recommend the Organization ensures that SEFA is reviewed prior to providing it to the auditors. Finally, the Organization should consider incorporating the SEFA preparation within their checklist for the monthly closeout process.

Corrective Action Plan

The Organization agrees with the finding and recommendation as outlined above. In November 2023, the Organization updated and communicated changes to the Federal Awards Policies and Procedures Manual to ensure all controls are adequate to ensure compliance with federal statutes, regulations, and Uniform Guidance requirements. This was the first year the Organization has been subject to the single audit requirement. The Organization worked with the audit firm to ensure proper reporting and controls were in place. We understand it is our responsibility to ensure our single audit is completed within the required timeline and will work closely with future CPA teams to adhere to required timeframes. In January 2024, the Board of Directors approved the updated version of our Federal Awards Policies and Procedures Manual. The Organization has communicated the policies and procedures to ensure organizational compliance with the updated guidelines. As of March 2024, for fiscal year ended 2023, the Organization has prepared the SEFA and will present these materials concurrent with our regular audit schedule. The SEFA will be updated throughout each fiscal year as new federal funds are awarded. The Organization will continue to identify areas of opportunity to improve compliance with federal requirements.

Categories

Reporting

Other Findings in this Audit

  • 1054518 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.218 Community Development Block Grants/entitlement Grants $754,211
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $288,066
93.434 Every Student Succeeds Act/preschool Development Grants $201,856
93.435 Innovative State and Local Public Health Strategies to Prevent and Manage Diabetes and Heart Disease and Stroke- $142,000
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $125,000
93.011 National Organizations of State and Local Officials $25,000
93.767 Children's Health Insurance Program $10,295
93.268 Immunization Cooperative Agreements $5,880
93.959 Block Grants for Prevention and Treatment of Substance Abuse $2,014
21.027 Coronavirus State and Local Fiscal Recovery Funds $47