Finding Text
Significant Deficiency Internal Control Weakness – Violation of Federal and State Laws and Provisions Condition: The minimum requirement of at least 51% of the Board Members to utilize the Health Care Centers at least once in a two-year (24 mos.) period was not satisfied. The federal mandate of the funding agency is that the board must be comprised of at least 9 Board Members with a maximum of 25. Also, Gateway could not provide a complete list of the actual board members for the board meeting minutes for the 2022 fiscal year. Criteria: Compliance with Federal statutes, regulations, and the terms and conditions of Federal awards that may have a direct and material effect on each of its major programs per funding agency and the Compliance Supplement (OMB). Cause: Policies and procedures are not in place or implemented, to ensure the effectiveness of financial management, laws and regulations and oversight. Effect or Potential Effect: The loss of grant funding due to noncompliance. Auditor’s Recommendation: The board members should utilize the services of the clinics as mandated by the funding Organization