Finding 558980 (2023-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2025-05-01
Audit: 355216
Organization: Memphis Health Center Inc. (TN)
Auditor: V Lynn Evans CPA

AI Summary

  • Answer: Monthly reconciliations for major accounts were not completed on time or at all.
  • Trend: This issue reflects a pattern of non-compliance with internal control policies due to staff turnover.
  • List: Follow up by ensuring timely reconciliations and addressing staffing gaps in the Finance team.

Finding Text

Monthly general ledger account reconciliations and related journal entries for major accounts, including cash and major federal award program accounts, were either not performed or not timely performed. Failure to adhere to the Centerʹs existing internal control policies and procedures. Key staff turnover/vacancies in the Finance area.

Corrective Action Plan

The Management Team of the Finance department will adhere to standards associated with monthend and year-end closing procedures. The Federal drawdowns will be timed in accordance with actual, immediate cash requirements. Reconciling the bank statements and payables will be completed monthly to assure accuracy of cash and expense. We will review the Memphis Health Center chart of accounts to assure that all Journal Entries are designed to accumulate transactions in various departments and divisions. Contact person responsible for correction action, Dorothette Y White, CFO. As of December 2024, the correction actions have been completed.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1135422 2023-001
    Material Weakness

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) $899,827
93.914 Hiv Emergency Relief Project Grants $202,223
93.526 Grants for Capital Development in Health Centers $130,000
93.600 Head Start $76,000
93.527 Grants for New and Expanded Services Under the Health Center Program $35,424