Finding 529203 (2024-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2024

Accepted

2025-03-20

Audit: 347194

Organization: Community Health of Central Washington (WA)

Auditor: Dza PLLC

AI Summary

Core Issue: The reported draws on the UDS did not match the federal cash transaction reports from the PMS system.
Impacted Requirements: Compliance with Title 2 U.S. CFR Part 200, specifically regarding accurate reporting of grant draws in the UDS.
Recommended Follow-Up: Ensure future UDS reports align with the UDS Manual guidelines to avoid discrepancies.

Finding Text

Section III – Federal Award Findings and Questioned Costs 2024-001 Reporting of Draws to UDS Program Information Federal Organization U.S Department of Health and Human Services Assistance Listing Numbers 93.224 and 93.527 Health Center Program Cluster Award Numbers H80CS08774‐17‐00, H80CS08774‐18‐00, H80CS08774‐18‐01, H80CS08774‐18‐02, and H8FCS41664‐01‐02 Criteria [X] Compliance Finding [X] Significant Deficiency [ ] Material Weakness Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subpart F, Compliance Supplement, Part 4, Compliance Requirement L, Reporting states as a key line item on the UDS, “Total BPHC Health Center Program grant(s) drawn down for the period from January 1 to December 31, of the calendar measurement year (Table 9E: Other Revenues, Line 1g, Column a).” and “Total accrued BPHC COVID-19 Supplemental grant(s) draw-down from January 1 to December 31, of the calendar measurement year (Table 9E: Other Revenues, Line 1q, Column a).” Condition During our testing of the 2023 UDS report submitted by the Organization for the Health Center Program, we identified Lines 1g and 1q of Table 9E did not tie out the PMS draw reports for the period. Context The 2023 UDS Manual requires that the draws reported in this table agree to the cash received per the Payment Management System (PMS) federal cash transaction report. Cause The Organization reported draws on an accrual basis, based on the amounts received per the PMS transactions report. Effect The amount reported in Table 9E of the 2023 UDS did not agree to the federal cash transaction report from the PMS system for the period covered by the UDS. Questioned Costs None identified Recommendation We recommend the Organization prepare the UDS report based on the guidelines established in the UDS Manual. Views of responsible officials and planned corrective action Management agrees with the finding. Corrective action has been taken appropriately.

Corrective Action Plan

The current year Schedule of Findings and Questioned Costs reported no matters in Section II – Financial Statement Findings and one matter in Section III – Federal Award Findings and Questioned Costs. Current year audit findings: 2024-001 Reporting of Draws to UDS Finding Description: Significant Deficiency – Internal Control over Compliance; It was identified that the UDS report submitted for reporting year 2023 was prepared using the accrual basis of accounting instead of the required cash basis. Planned corrective actions: Staff Training and Education: provide training to finance and compliance staff on UDS reporting requirements; require annual refresher training on financial reporting compliance. Review and Reconciliation Procedures: implement an internal review process before UDS report submission to ensure compliance with reporting standards; assign an independent reviewer within the finance team to verify that financial data is recorded on the correct basis before final submission. Internal Control Enhancements: implement periodic internal audits to assess compliance with reporting requirements and accounting standards. Corrective action taken: Upon discovery of this issue, CHCW promptly reviewed the reporting methodology and identified the discrepancy. The finance team corrected this issue for the 2024 UDS report, ensuring that all financial data was reported using the correct cash basis of accounting. Internal controls have been strengthened to prevent future occurrences of similar issues. Completion date: The correction for the 2024 UDS report has been completed. Staff training was conducted January 16, 2025. Review procedures and internal control enhancements have been fully implemented. Contact person responsible for corrective action: Tamiko Wilkens, Controller – Responsible for training and oversight. Desiree Ashbrooks, Chief Financial Officer – Responsible for reviewing and ensuring compliance.

Other Findings in this Audit

529204 2024-001

Significant Deficiency
529205 2024-001

Significant Deficiency
1105645 2024-001

Significant Deficiency
1105646 2024-001

Significant Deficiency
1105647 2024-001

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
93.527	Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program	$3.33M
93.224	Community Health Centers	$688,327
10.557	Wic Special Supplemental Nutrition Program for Women, Infants, and Children	$171,907
93.495	Community Health Workers for Public Health Response and Resilient	$154,187
93.884	Primary Care Training and Enhancement	$74,584
93.912	Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement	$36,500