Finding 517060 (2024-002)

Reporting: UDS Reporting Errors Condition: The 2023 UDS Report contained errors, including line items containing “critical information” per the May 2023 Compliance Supplement. The UDS Report errors we identified are summarized below: UDS Report - 2023 Criteria: Health centers receiving federal award funds under the Health Center Program are required to submit an accurate Uniform Data System (UDS) report annually. Cause: The personnel responsible for preparing the UDS report was unfamiliar with the underlying documentation used to prepare the financial information presented above. Additionally, the reported amounts were not agreed to the Clinic’s financial statements. Effect: As a result of this error, some of the information presented in the UDS was materially incorrect. This could potentially affect the health center’s compliance with federal reporting requirements and mislead users of the UDS information. Furthermore, inaccurate financial data could impair HRSA’s monitoring of the health center’s programmatic and financial performance. Recommendations: The UDS preparer should gain an understanding of the underlying documentation used to report the correct information. In addition, the financial statements should be compared to the UDS for all financial amounts presented. Any reconciling items between the Clinic’s financial statements and UDS should be documented and explained. The Clinic may want to consider a secondary review of the financial information included in the UDS by a member of the finance team. View of Responsible Officials and Planned Corrective Actions: The Clinic will take the auditor’s recommendation under advisement.