Description of Finding:
Significant Deficiency in Internal Controls over Compliance.
Identification of the Federal Program: U.S. Department of Health and Human Services; Health Clinic Program
Cluster; CFDA 93.224: H80CS24112
Criteria or Specific Requirement: Recipients of federal awards must establish internal controls over reports that
are prepared and submitted.
Finding/Condition: Pursuant to the reporting requirement set forth by the Department of Health and Human
Services, the Clinic is required to submit the single audit to the Federal Audit Clearinghouse within the sooner
of 30 days of the issuance of the audit report or nine months after the end of the Clinic’s fiscal year. During our
reporting period, the audit was not completed and filed timely.
Corrective Action:
As of September 2024, the agency changed financial management from an employed Chief Financial Officer to
a contracted fractional CFO with 10+ years of experience in FQHC financial management, the new CFO is also
a Certified Public Accountant. Under the new financial leadership, the clinic has made forward progress in
financial reporting and will be filing the 2023 audit by June 30, 2025.
Name of Responsible Person: Caleb Ott, Chief Executive Officer
Projected Completion Date: Completed at time of report.
Cause: A lack of California and FQHC specific financial expertise was a limiting factor in the oversight and
management of required financial reporting. Additionally, the accounting software was corrupted and required
specialized assistance to rebuild the data files and resolve the reporting issues. Finally, the impacts from
COVID-19 and the subsequent complexity in financial management and reporting overwhelmed the existing
financial staff and created delays in reporting that compounded year-over-year.
Questioned Cost: None