FAC Explorer

Finding 560348 (2023-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-05-14
Audit: 356257
Organization: Cornerstone Whole Healthcare Organization, Inc. (ID)
Auditor: Kdp Certified Public Accountants LLP

AI Summary

  • Core Issue: The Organization did not follow financial reporting rules, leading to inaccuracies in reported amounts.
  • Impacted Requirements: Compliance with 2 CFR section 200.328 was not met, affecting the accuracy of financial statements and federal award expenditures.
  • Recommended Follow-Up: Implement procedures to verify the accuracy and completeness of reported amounts before submission.

Finding Text

2023-002 – Financial Reporting Finding Type: Material Noncompliance; Material Weakness in Internal Control over Compliance Program: Rural Communities Opioid Response – Planning/Rural Health Outreach and Rural Network Development Program (AL# 93.912); U.S. Department of Health and Human Services; Direct award; all grant numbers. Criteria: The Organization failed to follow the financial reporting requirements in 2 CFR section 200.328. The Organization did not trace the amounts reported to accounting records that support the audited financial statements and the schedule of expenditures of federal awards to verify accuracy and completeness. Condition: Reported amounts were not reviewed and matched to the accounting records accurately prior to submission. Cause: The Organization does not have an adequate level of review in place to properly monitor the amounts being reported for compliance. Actual amounts reported were inaccurate and did not match the actual expenses up to that point in time. The Organization did not follow the specific steps noted in 2 CFR section 200.328 of tracing amounts to records and verifying for accuracy and completeness. Effect: The Organization may not be eligible for future funding or might have to pay back federal funds received for not appropriately identifying and reporting their actual expenses. Questioned Costs: No costs were questioned as a result of this finding. Recommendation: The Organization should implement procedures for verifying accuracy and completeness prior to submission. View of Responsible Officials: Management agrees with the finding and plans to implement procedures for verifying accuracy and completeness prior to submission.

Corrective Action Plan

Plan of Action: To correct deficiencies in the preparation and submission of the SF-425 Federal Financial Report, the organization has established SOP F1.03: Submission and Recordkeeping of Federal Financial Reports (SF-425). This procedure outlines the steps for accurately completing the SF-425 using verified financial data, submitting it through the appropriate federal systems by required deadlines, and maintaining supporting documentation in compliance with federal recordkeeping standards. It applies to all staff involved in financial reporting on federally funded grants.

Categories

Reporting Material Weakness

Other Findings in this Audit

  • 560343 2023-001
    Material Weakness Repeat
  • 560344 2023-001
    Material Weakness Repeat
  • 560345 2023-001
    Material Weakness Repeat
  • 560346 2023-001
    Material Weakness Repeat
  • 560347 2023-001
    Material Weakness Repeat
  • 560349 2023-002
    Material Weakness
  • 560350 2023-002
    Material Weakness
  • 560351 2023-002
    Material Weakness
  • 560352 2023-002
    Material Weakness
  • 560353 2023-003
    Material Weakness Repeat
  • 560354 2023-003
    Material Weakness Repeat
  • 560355 2023-003
    Material Weakness Repeat
  • 560356 2023-003
    Material Weakness Repeat
  • 560357 2023-003
    Material Weakness Repeat
  • 1136785 2023-001
    Material Weakness Repeat
  • 1136786 2023-001
    Material Weakness Repeat
  • 1136787 2023-001
    Material Weakness Repeat
  • 1136788 2023-001
    Material Weakness Repeat
  • 1136789 2023-001
    Material Weakness Repeat
  • 1136790 2023-002
    Material Weakness
  • 1136791 2023-002
    Material Weakness
  • 1136792 2023-002
    Material Weakness
  • 1136793 2023-002
    Material Weakness
  • 1136794 2023-002
    Material Weakness
  • 1136795 2023-003
    Material Weakness Repeat
  • 1136796 2023-003
    Material Weakness Repeat
  • 1136797 2023-003
    Material Weakness Repeat
  • 1136798 2023-003
    Material Weakness Repeat
  • 1136799 2023-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.211 Rural Telemedicine Grants $298,975
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $214,239
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $101,667