Finding 571195 (2023-106)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2025-07-14
Audit: 362092
Organization: Pancare of Florida, INC (FL)

AI Summary

  • Core Issue: Missing salary authorization documentation for one employee out of a sample of 40 raises concerns about compliance with federal requirements.
  • Impacted Requirements: Noncompliance with 2 CFR section 200.303, which mandates maintaining internal controls and supporting documentation for allowable costs.
  • Recommended Follow-up: Implement a robust process for retaining and verifying salary authorization forms to ensure compliance and avoid potential funding losses.

Finding Text

2023-106 Missing Documentation to Support Payroll Authorizations (Initially reported 2023) Assistance Listing Number: 93.224 and 93.527 Name of Federal Agency: Department of Health and Human Services, HRSA Program Title: Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) and Grants for New and Expanded Services Under the Health Center Program Compliance Requirement: Allowable Activities and Costs Pass-through Entity: N/A Federal Grant/Contract Number and Grant Year: H8006452 (2022 and 2023), H2E45500 (2022), COVID-19 ARP H8F40324 (2021), H2E50094 (2023) and COVID-19 H8G48569 (2022) Finding Type: Significant Deficiency in Internal Control Questioned Costs: $0 Condition: The Organization could not provide one salary authorization form for sample selection of 40 employees. Criteria: 2 CFR section 200.303 requires that nonfederal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards Under compliance requirements for allowable activities and costs, management should ensure that costs can be supported by underlying accounting documentation. Cause: Filing errors resulting in staff being unable to provide the requested authorizations. Effect: The Organization would not be able to provide the related documentation to support allowable activities and costs under the program which could lead to loss in grant funding. Recommendation: We recommend that the Organization should put in a process to appropriately retain documentation to support allowable activities and costs under applicable grant programs. Views of Responsible Officials and Planned Corrective Actions: The Organization has implemented a process to ensure that all salary authorizations are properly obtained and stored. When there is any change in an employee's status or salary, an Employee Status Form is completed and signed by the employee, their supervisor, and Human Resources, and when required, by the COO and CEO. Additionally, the salary authorization form is added to a secure shared file drive. The shared file drive includes a section where all salary changes are listed. Both HR and Finance initial off to confirm that each salary change is supported by the proper documentation during the payroll review process.

Corrective Action Plan

Condition: The Organization could not provide one salary authorization from for sample selection of 40 employees. Corrective Action Planned: The Organization has implemented a process to ensure that all salary authorizations are properly obtained and stored. When there is any change in an employee's status or salary, an Employee Status Form is completed and signed by the employee, their supervisor, and Human Resources, and when required by the COO and CEO. Additionally, the salary authorization form is added to a secure shared file drive. The shared file drive includes a section where all salary changes are listed. Both HR and Finance initial off to confirm that each salary change is supported by the proper documentation during the payroll review process. Person Responsible for Corrective Action: Joe Derry, Chief Financial Officer. Anticipated Completion Date: Implemented.

Categories

Subrecipient Monitoring HUD Housing Programs Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 571191 2023-101
    Material Weakness Repeat
  • 571192 2023-102
    Significant Deficiency Repeat
  • 571193 2023-104
    Significant Deficiency
  • 571194 2023-105
    Material Weakness
  • 571196 2023-102
    Significant Deficiency Repeat
  • 571197 2023-104
    Significant Deficiency
  • 571198 2023-105
    Material Weakness
  • 571199 2023-106
    Significant Deficiency
  • 571200 2023-101
    Material Weakness Repeat
  • 571201 2023-102
    Significant Deficiency Repeat
  • 571202 2023-104
    Significant Deficiency
  • 571203 2023-105
    Material Weakness
  • 571204 2023-106
    Significant Deficiency
  • 571205 2023-102
    Significant Deficiency Repeat
  • 571206 2023-104
    Significant Deficiency
  • 571207 2023-102
    Significant Deficiency Repeat
  • 571208 2023-104
    Significant Deficiency
  • 571209 2023-102
    Significant Deficiency Repeat
  • 571210 2023-104
    Significant Deficiency
  • 571211 2023-105
    Material Weakness
  • 571212 2023-106
    Significant Deficiency
  • 571213 2023-101
    Material Weakness Repeat
  • 571214 2023-102
    Significant Deficiency Repeat
  • 571215 2023-104
    Significant Deficiency
  • 571216 2023-105
    Material Weakness
  • 571217 2023-106
    Significant Deficiency
  • 571218 2023-102
    Significant Deficiency Repeat
  • 571219 2023-104
    Significant Deficiency
  • 571220 2023-102
    Significant Deficiency Repeat
  • 571221 2023-104
    Significant Deficiency
  • 571222 2023-105
    Material Weakness
  • 571223 2023-106
    Significant Deficiency
  • 571224 2023-101
    Material Weakness Repeat
  • 1147633 2023-101
    Material Weakness Repeat
  • 1147634 2023-102
    Significant Deficiency Repeat
  • 1147635 2023-104
    Significant Deficiency
  • 1147636 2023-105
    Material Weakness
  • 1147637 2023-106
    Significant Deficiency
  • 1147638 2023-102
    Significant Deficiency Repeat
  • 1147639 2023-104
    Significant Deficiency
  • 1147640 2023-105
    Material Weakness
  • 1147641 2023-106
    Significant Deficiency
  • 1147642 2023-101
    Material Weakness Repeat
  • 1147643 2023-102
    Significant Deficiency Repeat
  • 1147644 2023-104
    Significant Deficiency
  • 1147645 2023-105
    Material Weakness
  • 1147646 2023-106
    Significant Deficiency
  • 1147647 2023-102
    Significant Deficiency Repeat
  • 1147648 2023-104
    Significant Deficiency
  • 1147649 2023-102
    Significant Deficiency Repeat
  • 1147650 2023-104
    Significant Deficiency
  • 1147651 2023-102
    Significant Deficiency Repeat
  • 1147652 2023-104
    Significant Deficiency
  • 1147653 2023-105
    Material Weakness
  • 1147654 2023-106
    Significant Deficiency
  • 1147655 2023-101
    Material Weakness Repeat
  • 1147656 2023-102
    Significant Deficiency Repeat
  • 1147657 2023-104
    Significant Deficiency
  • 1147658 2023-105
    Material Weakness
  • 1147659 2023-106
    Significant Deficiency
  • 1147660 2023-102
    Significant Deficiency Repeat
  • 1147661 2023-104
    Significant Deficiency
  • 1147662 2023-102
    Significant Deficiency Repeat
  • 1147663 2023-104
    Significant Deficiency
  • 1147664 2023-105
    Material Weakness
  • 1147665 2023-106
    Significant Deficiency
  • 1147666 2023-101
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.527 Grants for New and Expanded Services Under the Health Center Program $5.71M
93.527 Covid-19 Grants for New and Expanded Services Under the Health Center Program $450,175
10.855 Distance Learning and Telemedicine Loans and Grants $432,551
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $372,813
93.918 Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $264,880
93.224 Health Center Program (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $229,845
93.939 Hiv Prevention Activities Non-Governmental Organization Based $135,532
93.224 Covid-19 Health Center Program (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $113,838
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $64,030
93.526 Covid-19 Grants for Capital Development in Health Centers $1,466