Finding 485680 (2023-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-09-04

AI Summary

  • Core Issue: CBNHC failed to submit the required quarterly SF-425 reports for the Indian Self-Determination program in fiscal year 2023.
  • Impacted Requirements: Non-compliance with the Annual Funding Agreement's reporting deadlines, including quarterly and annual narrative reports.
  • Recommended Follow-Up: CBNHC should establish internal controls to ensure timely completion and submission of all required reports moving forward.

Finding Text

2023-004 — Reporting Federal/state program information: Funding agency: U.S. Department of Health and Human Services Title: Indian Self-Determination ALN: 93.441 Award period: 10/1/2022 – 9/30/2023 Criteria: The Annual Funding Agreement (AFA) with I.H.S. requires CBNHC to submit Federal Financial Reports (SF-425) within 30 days after the close of each quarter, except for the fourth quarter, which will be submitted within 90 days after the close of the federal fiscal year. Additionally, a brief annual narrative report will also be submitted within 90 days after the close of the federal fiscal year. Condition: The quarterly SF-425 reports for all quarters of fiscal year 2023 were not prepared or submitted to I.H.S. Context: All four quarterly SF-425 reports for the Indian Self-Determination program. Questioned Costs: None. Cause: CBNHC was significantly impacted by the COVID-19 pandemic, which impacted the preparation and submission of required reports. Effect: CBNHC is not in compliance with reporting requirements for the Indian Self-Determination program. Auditor’s Recommendations: CBNHC should develop internal controls to ensure all program reports are properly completed and submitted by the required due dates. Management’s Response: In fiscal year 2023, CBNHC experienced significant disruption in its administrative operations caused by political struggles over its rightful governing body. In the first quarter of fiscal year 2023, CBNHC made progress towards catching up with the reconciliation of its financials so that it could properly produce the SF-425 reports. However key personnel were administratively unavailable during the last quarter of 2023, causing CBNHC to fall further behind in its financials rendering CBNHC to be unable to produce the SF-425 report on time.

Corrective Action Plan

2023-004 – Reporting Corrective Action: CBNHC will implement the following corrective actions: • CBNHC will immediately complete the SF-425 financial reports for all fiscal years through September 30, 2023, and thereafter, every quarter through the current fiscal year. • CBNHC will actively communicate its status with the IHS Area Office regarding its progress towards the required deliverables. • CBNHC will implement an executive leadership team who are collectively responsible for assuring regulatory compliance for the entity, which will be achieved through the timely sharing of important information. • CBNHC’s Board of Directors will serve as governance over these requirements. Person Responsible: The following individuals will be responsible for the above corrective action plan: • Interim Finance Director/Chief Operations Officer (Volelle Zamora) – Is responsible for ensuring the timely completion of annual audits and for ensuring the SF-425 financial reports are submitted to IHS according to the deadlines established by the AFA. • Chief Executive Officer (Derrick Watchman) – Is responsible for ensuring that the annual narrative reports are submitted to IHS according to the AFA. In addition, the CEO will initiate monthly progress meetings with IHS. • Chief Executive Officer (Derrick Watchman), Chief Medical Officer (Sheryl O’Shea MD), Interim Finance Director/Chief Operations Officer (Volelle Zamora), Executive Administrative Assistant (Ophelia Mace), and Human Resource Director (Christina Chavez) – Will serve as the CBNHC executive leadership team and are collectively responsible for assuring that the required reporting and other compliance are achieved. • Board of Directors (Kimberly Bruce, Lester Secatero, Harrison Platero) – Are responsible for CBNHC’s governance and will monitor compliance. Completion Date: The annual narrative reports for fiscal year 2023 were completed as of December 31, 2023. The SF-425 reports were completed and submitted to IHS in July 2024. CBNHC is conducting frequent progress meetings with IHS regarding its requirements for financial reporting.

Categories

Reporting

Other Findings in this Audit

  • 485678 2023-003
    - Repeat
  • 485679 2023-003
    - Repeat
  • 485681 2023-005
    Significant Deficiency Repeat
  • 485682 2023-006
    Significant Deficiency
  • 485683 2023-007
    Significant Deficiency
  • 485684 2023-003
    - Repeat
  • 485685 2023-003
    - Repeat
  • 485686 2023-003
    - Repeat
  • 485687 2023-003
    - Repeat
  • 485688 2023-003
    - Repeat
  • 485689 2023-004
    Material Weakness Repeat
  • 485690 2023-005
    Significant Deficiency Repeat
  • 485691 2023-006
    Significant Deficiency
  • 485692 2023-007
    Significant Deficiency
  • 1062120 2023-003
    - Repeat
  • 1062121 2023-003
    - Repeat
  • 1062122 2023-004
    Material Weakness Repeat
  • 1062123 2023-005
    Significant Deficiency Repeat
  • 1062124 2023-006
    Significant Deficiency
  • 1062125 2023-007
    Significant Deficiency
  • 1062126 2023-003
    - Repeat
  • 1062127 2023-003
    - Repeat
  • 1062128 2023-003
    - Repeat
  • 1062129 2023-003
    - Repeat
  • 1062130 2023-003
    - Repeat
  • 1062131 2023-004
    Material Weakness Repeat
  • 1062132 2023-005
    Significant Deficiency Repeat
  • 1062133 2023-006
    Significant Deficiency
  • 1062134 2023-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.441 Indian Self-Determination $528,472
93.237 Special Diabetes Program for Indians_diabetes Prevention and Treatment Projects $249,062
93.495 Community Health Workers for Public Health Response and Resilient $24,629
93.788 Opioid Str $21,066
93.772 Tribal Public Health Capacity Building and Quality Improvement Umbrella Cooperative Agreement $15,120
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $14,477