FAC Explorer

Finding 525118 (2023-007)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2025-02-28
Audit: 344384
Organization: Mary's Center for Maternal and Child Care, Inc. (DC)
Auditor: Forvis Mazars LLP

AI Summary

  • Core Issue: The Organization failed to provide approval evidence for 8 out of 25 sampled expenditures related to the federal program.
  • Impacted Requirements: This violates internal control requirements under 2 CFR §200.303, risking misappropriation and unallowable charges.
  • Recommended Follow-Up: Assign a knowledgeable individual to review and ensure all expenditures have proper documentation and approval.

Finding Text

Information on the federal program _ Assistance Listing Number 93.224/93.527; Health Center Program Cluster; Department of Health and Human Services Criteria or specific requirement – Activities Allowed/Unallowed and Cost Principles; As stated in 2 CFR §200.303, the non-federal entity (i.e., the Organization) must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or in the “Internal Control Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition – The Organization was unable to provide evidence of approval for 8 expenditures charged to the federal program. Cause – The Organization did not consistently follow the internal control policies and procedures that it has in place to ensure each expenditure was properly approved. Effect or potential effect – There is a risk of misappropriation or charging unallowable expenditures to the program, resulting in actual and/or potential questioned costs. Questioned costs – None Context – Out of a population of 483 direct costs, a sample of 25 expenditures were selected for testing, and 8 did not have evidence of approval. The sample was not statistically valid. Identification as a repeat finding, if applicable – Not a repeat finding Recommendation – We recommend an individual with knowledge of the federal program review expenditures charged to the federal program and ensure all transactions are supported by documentation evidencing the nature and business purpose of each expenditure. Views of responsible officials and planned corrective actions – See separate auditee document for planned corrective action.

Corrective Action Plan

Management has assessed that all supporting documentation that was unable to be provided for audit support was related to transactions that occurred on the legacy accounting system. The legacy accounting system did not allow for centralized/shared data storage, and as a result, caused personnel to store information in different locations. In May 2023, the organization made the transition to the new accounting system where data can easily be centralized/shared. Management has also implemented policies and procedures that require review of documents within the accounting system prior to approval, thus creating internal controls to prevent a lack of supporting documentation for future reporting periods. Anticipated Completion Date: 3/31/2025 Responsible Contact Person: Tony Ricciardella, Interim Chief Financial Officer and Alison Roca, Controller

Categories

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 525109 2023-004
    Significant Deficiency Repeat
  • 525110 2023-005
    Significant Deficiency
  • 525111 2023-005
    Significant Deficiency
  • 525112 2023-005
    Significant Deficiency
  • 525113 2023-005
    Significant Deficiency
  • 525114 2023-005
    Significant Deficiency
  • 525115 2023-006
    Significant Deficiency Repeat
  • 525116 2023-006
    Significant Deficiency Repeat
  • 525117 2023-006
    Significant Deficiency Repeat
  • 525119 2023-007
    Significant Deficiency
  • 525120 2023-007
    Significant Deficiency
  • 525121 2023-007
    Significant Deficiency
  • 525122 2023-007
    Significant Deficiency
  • 525123 2023-008
    Significant Deficiency Repeat
  • 525124 2023-008
    Significant Deficiency Repeat
  • 525125 2023-008
    Significant Deficiency Repeat
  • 525126 2023-008
    Significant Deficiency Repeat
  • 525127 2023-008
    Significant Deficiency Repeat
  • 525128 2023-008
    Significant Deficiency Repeat
  • 525129 2023-008
    Significant Deficiency Repeat
  • 525130 2023-008
    Significant Deficiency Repeat
  • 525131 2023-009
    Significant Deficiency Repeat
  • 525132 2023-009
    Significant Deficiency Repeat
  • 525133 2023-009
    Significant Deficiency Repeat
  • 525134 2023-009
    Significant Deficiency Repeat
  • 525135 2023-009
    Significant Deficiency Repeat
  • 525136 2023-009
    Significant Deficiency Repeat
  • 525137 2023-009
    Significant Deficiency Repeat
  • 525138 2023-009
    Significant Deficiency Repeat
  • 1101551 2023-004
    Significant Deficiency Repeat
  • 1101552 2023-005
    Significant Deficiency
  • 1101553 2023-005
    Significant Deficiency
  • 1101554 2023-005
    Significant Deficiency
  • 1101555 2023-005
    Significant Deficiency
  • 1101556 2023-005
    Significant Deficiency
  • 1101557 2023-006
    Significant Deficiency Repeat
  • 1101558 2023-006
    Significant Deficiency Repeat
  • 1101559 2023-006
    Significant Deficiency Repeat
  • 1101560 2023-007
    Significant Deficiency
  • 1101561 2023-007
    Significant Deficiency
  • 1101562 2023-007
    Significant Deficiency
  • 1101563 2023-007
    Significant Deficiency
  • 1101564 2023-007
    Significant Deficiency
  • 1101565 2023-008
    Significant Deficiency Repeat
  • 1101566 2023-008
    Significant Deficiency Repeat
  • 1101567 2023-008
    Significant Deficiency Repeat
  • 1101568 2023-008
    Significant Deficiency Repeat
  • 1101569 2023-008
    Significant Deficiency Repeat
  • 1101570 2023-008
    Significant Deficiency Repeat
  • 1101571 2023-008
    Significant Deficiency Repeat
  • 1101572 2023-008
    Significant Deficiency Repeat
  • 1101573 2023-009
    Significant Deficiency Repeat
  • 1101574 2023-009
    Significant Deficiency Repeat
  • 1101575 2023-009
    Significant Deficiency Repeat
  • 1101576 2023-009
    Significant Deficiency Repeat
  • 1101577 2023-009
    Significant Deficiency Repeat
  • 1101578 2023-009
    Significant Deficiency Repeat
  • 1101579 2023-009
    Significant Deficiency Repeat
  • 1101580 2023-009
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.224 Health Center Program (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $3.81M
93.676 Unaccompanied Children Program $2.87M
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $1.56M
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $1.12M
93.926 Healthy Start Initiative $448,917
93.778 Medical Assistance Program $417,201
93.788 Opioid Str $382,004
93.268 Immunization Cooperative Agreements $372,292
93.526 Grants for Capital Development in Health Centers $362,489
93.310 Trans-Nih Research Support $221,357
93.994 Maternal and Child Health Services Block Grant to the States $114,183
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $86,396
93.217 Family Planning Services $86,353
93.185 Immunization Research, Demonstration, Public Information and Education Training and Clinical Skills Improvement Projects $66,886
93.527 Grants for New and Expanded Services Under the Health Center Program $64,286
93.110 Maternal and Child Health Federal Consolidated Programs $49,996
93.297 Teenage Pregnancy Prevention Program $33,250
93.426 The National Cardiovascular Health Program $28,715
16.588 Violence Against Women Formula Grants $17,131
93.917 Hiv Care Formula Grants $9,192
93.504 Family to Family Health Information Centers $7,127