Finding Text
Condition: Rainbow Health Minnesota did not submit its single audit reporting package to the Federal Audit Clearinghouse within the required time frame.
Criteria: 2 CFR 200.328 establishes requirements for financial grant reporting by a non-federal entity. The Organization must report financial information as required by the terms and conditions of the federal award. 2 CFR 200.512(a) requires the audit reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from the auditors or nine months after the end of the audit period.
Cause: Employee turnover in the finance department resulted in financial and program data not being ready for the financial and single audits on a timely basis.
Effect: The Organization is not in compliance with timely reporting requirements.
Questioned Costs: $0
Context: Rainbow Health Minnesota did not submit its year ended December 31, 2020 audit reporting package to the Federal Audit Clearinghouse until November 4, 2021, its year ended December 31, 2021 audit reporting package until February 10, 2023 and did not meet the nine month reporting requirement for the year ended December 31, 2022.
Recommendation: We recommend Rainbow Health Minnesota continue efforts to develop internal control policies and procedures over financial activities to ensure that its financial and program data is ready for the financial and single audits on a timely basis.
Views of Responsible Officials and Planned Corrective Actions: We agree with this finding and have implemented the following internal control policies and procedures concerning the timeliness of financial activities: Rainbow Health Minnesota is reimplementing monthly board meetings that will include a financial review of income and expense reports and balance sheets. The lateness for the 2022 audit was partially due to staff turnover of the CFO and the subsequent review by the new Finance Director.
Responsibility for administering this process resides with the Finance Director.