Finding 519152 (2023-005)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-01-14
Audit: 337692
Auditor: Cbiz CPAS PC

AI Summary

  • Core Issue: Required reports were not submitted to the granting agency, indicating a failure in internal controls.
  • Impacted Requirements: Compliance with reporting criteria as outlined in grant agreements was not met.
  • Recommended Follow-Up: Improve processes and controls to ensure timely submission of reports and proper documentation retention.

Finding Text

Item: 2023-005 Assistance Listing Number: 93.940 Programs: HIV Prevention Activities Health Department Based Federal Agency: U.S. Department of Health and Human Services Pass-Through Agencies: Arizona Department of Health Services Pass-Through Grantor Identifying Number: CTR069364, CTR067201, CTR045489, ADHS19-207305 Award Year: April 1, 2022 to March 31, 2023; August 1, 2022 to July 31, 2023; January 1, 2023 to December 31, 2023; April 1, 2023 to March 31, 2024; August 1, 2023 to July 31, 2024 Compliance Requirement: Reporting Criteria: Per grant agreements the organization was required to submit multiple reports at various dates during the grant period. Condition: Required reports not submitted to granting agency and incomplete record retention to evidence the timely submission of reports to granting agencies. Questioned Costs: n/a Context: In a population of 52 required reports, we conducted a non-statistical sample of seven reports. In our sample of seven, we noted two required reports were not submitted to the granting agency. Additionally, management did not have contemporaneous documentation to evidence the timely submission of reports to certain granting agencies. This is deemed to be a material weakness in internal control over compliance. Effect: The system of internal controls was not properly implemented. Cause: Turnover within key positions of the organization resulted in insufficient documentation and/or inadequate implementation of the control procedures. Identification as a Repeat Finding: Not a repeat finding Recommendation: The Organization should enhance its processes and controls to ensure that required reports are submitted to granting agencies and to retain evidence of timely submission within the Organization's records. Views of Responsible Officials: Management of the Organization concurs with the finding. See Corrective Action Plan.

Corrective Action Plan

Item: 2023-005 Assistance Listing Number: 93.940 Programs: HIV Prevention Activities Health Department Based Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Arizona Department of Health Services Compliance Requirement: Reporting Criteria or Specific Requirement: Per grant agreements the organization was required to submit multiple reports at various dates during the grant period. Condition: Required reports not submitted to granting agency and incomplete record retention to evidence the timely submission of reports to granting agencies. Name of Contact Person: Rosalie Johnson, Chief Financial Officer Phone Number: (602) 595-8109 Anticipated Completion Date: January 1, 2024 Views of Responsible Officials and Corrective Actions: Management agrees with the finding. Reports will be submitted timely.

Categories

Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 519149 2023-002
    Material Weakness
  • 519150 2023-003
    Material Weakness
  • 519151 2023-004
    Significant Deficiency Repeat
  • 1095591 2023-002
    Material Weakness
  • 1095592 2023-003
    Material Weakness
  • 1095593 2023-004
    Significant Deficiency Repeat
  • 1095594 2023-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.940 Hiv Prevention Activities Health Department Based $1.24M
93.914 Hiv Emergency Relief Project Grants $1.07M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.00M
93.939 Hiv Prevention Activities Non-Governmental Organization Based $448,106
93.217 Family Planning Services $286,295
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $73,194
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $38,642