Finding 576806 (2022-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-10-17

AI Summary

  • Core Issue: Quarterly SF-425 reports were not submitted on time for the year ended June 30, 2022.
  • Impacted Requirements: Awardees must file SF-425 reports within 30 days after each calendar quarter.
  • Recommended Follow-Up: Management should enhance reporting processes and controls to ensure timely and accurate submissions of SF-425 reports.

Finding Text

Criteria and Condition: Awardees must submit a quarterly Federal Financial Report Cash Transaction Report (“SF-425”) via the Payment Management System (“PMS”) within 30 days of the end of each calendar quarter. There is not sufficient evidence to verify that quarterly SF-425 reports were filed within 30 days of the end of each calendar quarter for the year ended June 30, 2022. Context: The Center was not able to provide copies of a timely filed quarterly SF-425 for any quarter for the year ended June 30, 2022. Effect: It appears that there were no quarterly SF-425 forms reporting cash draws and expenditures completed and submitted to PMS in a timely manner. Questioned Costs: None Cause: Internal controls over reporting and compliance were not effective at ensuring that the required reports were being accurately completed in a timely manner. Recommendations: We recommend that management improve their reporting processes and controls to ensure all SF-425 reports are submitted timely and accurately to PMS. Views of Responsible Officials and Planned Corrective Actions: Management is taking steps to improve the internal controls over the completion and submission of SF-425 reports to ensure that reporting can be completed in an accurate and timely manner. These changes include updates to internal processes and the hiring of key members of financial management.

Categories

Reporting

Other Findings in this Audit

  • 363 2022-001
    Material Weakness Repeat
  • 364 2022-002
    Material Weakness Repeat
  • 365 2022-003
    Material Weakness Repeat
  • 366 2022-004
    Material Weakness Repeat
  • 576805 2022-001
    Material Weakness Repeat
  • 576807 2022-003
    Material Weakness Repeat
  • 576808 2022-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $2.33M
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $607,701