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.