Finding Text
Finding 2023-001 Noncompliance with Federal and State Reporting Requirements
Assistance Listing Numbers 93.224 Health Centers Program
93.527 Affordable Care Act Grants (ACA) for New and
Expanded Services Under the Health Center
Program
93.526 Affordable Care Act (ACA) Grants for Capital
Development in Health Centers
Federal Agency U.S. Department of Health and Human Services
Passthrough Agency N/A
Award Number/Year 2023
Criteria
Uniform Guidance requires that entities required to complete a single audit submit a Data Collection Form, schedule of expenditures of federal awards (SEFA) and single audit reports to the Federal Audit Clearinghouse within the earlier of thirty (30) calendar days after receipt of the auditor’s report or nine (9) months after the end of the audit period.
Condition
FFHC did not submit its Data Collection Form and audited financial statements and SEFA to the Federal Audit Clearinghouse website within nine (9) months of June 30, 2023.
Cause
This condition was due to FFHC being understaffed within its accounting and finance department resulting in a significant delay in completing the recording of financial transactions, performing account reconciliations and preparing financial reports available for audit.
Effect
The effect is that controls over the financial reporting process were weakened thereby increasing the risk that material misstatements could be included in the financial statements without management being aware. Additionally, noncompliance with financial reporting deadlines could cause funding sources for FFHC to delay providing funding for the current fiscal year.
Questioned Costs
None noted.
Repeat Finding
Yes. See Finding 2022-003 in the summary schedule of prior audit findings.
Recommendation
We recommend that management 1) hire personnel within its accounting and finance department so that all defined tasks can be performed in a more timely manner and/or 2) evaluate its current processes to determine how to make them more efficient so that the current personnel within the accounting and finance department are able to complete their tasks in a more timely manner.
Views of Responsible Officials and Planned Corrective Actions
See corrective action plan.