FAC Explorer

Finding 519721 (2023-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2025-01-20
Audit: 338825
Organization: Eau Claire Cooperative Health Center, Inc. (SC)
Auditor: Brown CPA LLC

AI Summary

  • Core Issue: There were significant problems with financial reporting due to staffing shortages, leading to numerous corrections needed in the financial statements.
  • Impacted Requirements: Management failed to maintain effective internal controls and timely financial reporting, as outlined in the criteria.
  • Recommended Follow-up: Increase resources in the finance department to ensure adequate staffing with qualified personnel for better operational efficiency.

Finding Text

Finding: 2023-001 Oversight of Financial Reporting Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting and timely performance of associated financial reporting functions. Condition: During the current year audit it was determined that: 1. Numerous correcting journal entries were necessary to arrive at the adjusted financial statement amounts. 2. As discussed in finding 2023-002 the financial statement audit was not timely completed. Cause: The Organization has had staffing issues during the year and numerous positions were either unfilled or there was turnover resulting in inefficient operations. Effect: Additional time and effort was needed to finalize the financial reporting for fiscal year 2023. Recommendation: The Organization needs to devote more resources to the finance department so that adequate staffing levels can be maintained by qualified individuals. Views of Responsible Officials: See Attachment A.

Corrective Action Plan

We have reviewed the comments provided herein and are in agreement with the comments and will remediate the findings as follows: We are reviewing the staffing of our finance department in an effort to ensure that on a go forward basis we reduce turnover and have individuals with adequate training and subject matter knowledge to perform assigned functions in accordance with appropriate standards and expectations. We are always receptive to positive constructive criticism in our effort to improve upon compliance and financial reporting. Sincerely yours, Sonja McCausland

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 519722 2023-002
    Material Weakness
  • 519723 2023-001
    Material Weakness
  • 519724 2023-002
    Material Weakness
  • 1096163 2023-001
    Material Weakness
  • 1096164 2023-002
    Material Weakness
  • 1096165 2023-001
    Material Weakness
  • 1096166 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $7.50M
93.224 Community Health Centers $3.55M
93.153 Coordinated Services and Access to Research for Women, Infants, Children, and Youth $938,040
93.918 Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $648,223