Finding 503560 (2022-003)

Significant Deficiency Repeat Finding
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2024-10-23

AI Summary

  • Core Issue: KCHC failed to provide adequate documentation for expenditures, leading to noncompliance with allowable costs regulations.
  • Impacted Requirements: 2 CFR section 200.403(e) mandates that all costs must be properly documented, which was not met in this case.
  • Recommended Follow-Up: Ensure that all program expenditures are approved only with complete and accurate documentation to prevent future issues.

Finding Text

Federal Agency: U.S. Department of Health and Human Services AL Program: 93.224 Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) Federal Award No.: H8031624, H8F41048, H8D36529 Area: Allowable Costs/Cost Principles Questioned Costs: $6,008 Criteria: In accordance with 2 CFR section 200.403(e), costs must be adequately documented. Condition: Of forty non-payroll expenditures tested, aggregating $128,258 of a total population of $2,220,614, the following were noted: 1. For one (or 3%), supporting Credit Card No Receipt Form (CCNRF) (document no C16791 totaling $51) indicates the original fuel receipt was provided to KCHC’s accounting office. However, no supporting fuel receipt was provided to the audit team supporting the CCNRF. 2. For one (or 3%), the invoice provided by KCHC did not match the expenditure details (invoice no. 21279098 totaling $5,957). The invoice provided by KCHC (invoice no. 212790986) was incorrect. Cause: KCHC did not enforce recordkeeping and monitoring controls over compliance with applicable allowable costs/cost principles requirements. Effect: KCHC is in noncompliance with applicable allowable costs/cost principles. Questioned costs of $6,008 result as the project questioned costs exceeds $25,000 threshold. Identification as a Repeat Finding: Finding No. 2021-004 Finding No. 2022-003, continued Federal Agency: U.S. Department of Health and Human Services AL Program: 93.224 Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) Federal Award No.: H8031624, H8F41048, H8D36529 Area: Allowable Costs/Cost Principles Questioned Costs: $6,008 Recommendation: Program Expenditures should be approved only when supported by accurate and complete documents. Views of Responsible Officials: Management agrees with the finding and has developed a plan to correct the finding. Refer to separate Corrective Action Plan.

Corrective Action Plan

Finding No. 2022-003 KCHC agrees with the finding and understands the importance of maintaining robust recordkeeping and documentation procedures to comply with federal cost principles. We acknowledge the discrepancies noted in the audit findings regarding non-payroll expenditures. To address these issues, KCHC has implemented the following actions: • Strengthening Documentation Controls: KCHC has reinforced its recordkeeping procedures, requiring that all expenditures be fully supported by accurate documentation before approval. The accounting department has implemented additional review layers to ensure that all supporting documents, including receipts and invoices, are properly matched and retained. • Enhanced Training for Staff: Staff responsible for processing and documenting expenditures have undergone training to improve awareness of federal cost principles and documentation requirements. This training will ensure that all expenditures are supported by accurate, complete, and timely documentation. • Monitoring and Oversight: KCHC has introduced regular internal audits to monitor compliance with documentation standards. These audits will help identify any potential discrepancies early and ensure timely corrective action. Implementation Timeline: KCHC began implementation of these changes in FY 2025 under the CFO. The organization remains confident that these measures will address the audit findings and improve compliance with 2 CFR section 200.403(e). KCHC is committed to maintaining the highest standards of financial management and accountability. Responsible person: Arlene DeleonGuerrero, CFO

Categories

Questioned Costs Allowable Costs / Cost Principles Subrecipient Monitoring HUD Housing Programs

Other Findings in this Audit

  • 503561 2022-004
    Significant Deficiency
  • 503562 2022-005
    Material Weakness Repeat
  • 503563 2022-006
    Material Weakness Repeat
  • 503564 2022-007
    Material Weakness Repeat
  • 503565 2022-003
    Significant Deficiency Repeat
  • 503566 2022-004
    Significant Deficiency
  • 503567 2022-005
    Material Weakness Repeat
  • 503568 2022-006
    Material Weakness Repeat
  • 503569 2022-007
    Material Weakness Repeat
  • 503570 2022-003
    Significant Deficiency Repeat
  • 503571 2022-004
    Significant Deficiency
  • 503572 2022-005
    Material Weakness Repeat
  • 503573 2022-006
    Material Weakness Repeat
  • 503574 2022-007
    Material Weakness Repeat
  • 1080002 2022-003
    Significant Deficiency Repeat
  • 1080003 2022-004
    Significant Deficiency
  • 1080004 2022-005
    Material Weakness Repeat
  • 1080005 2022-006
    Material Weakness Repeat
  • 1080006 2022-007
    Material Weakness Repeat
  • 1080007 2022-003
    Significant Deficiency Repeat
  • 1080008 2022-004
    Significant Deficiency
  • 1080009 2022-005
    Material Weakness Repeat
  • 1080010 2022-006
    Material Weakness Repeat
  • 1080011 2022-007
    Material Weakness Repeat
  • 1080012 2022-003
    Significant Deficiency Repeat
  • 1080013 2022-004
    Significant Deficiency
  • 1080014 2022-005
    Material Weakness Repeat
  • 1080015 2022-006
    Material Weakness Repeat
  • 1080016 2022-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $100,511
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $85,996