Finding 578801 (2022-001)

Significant Deficiency
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-11-24
Audit: 4057
Organization: Community Health Alliance (NV)
Auditor: Chw LLP

AI Summary

  • Core Issue: Management failed to maintain effective internal controls over financial reporting due to missed reconciliations.
  • Impacted Requirements: Timely reviews of reconciliations for bank accounts and donor restricted net assets were not performed in fiscal year 2022.
  • Recommended Follow-Up: Management should enhance staffing and implement additional controls to ensure accurate financial records and prevent future issues.

Finding Text

Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting. Condition: Reconciliations for certain bank accounts and donor restricted net assets were not occurring as designed during the fiscal year. Effect: Internal control design testing identified reconciliations that were not reviewed timely during the fiscal year 2022. Cause: Inadequate turnover and staffing constraints, specifically within finance, contributed to delays in reconciliation completion and review. Recommendation: We recommend management work to ensure accurate and complete financial and accounting records. Views of Responsible Officials and Corrective Action Plan: The Center agrees with the finding and will implement additional controls to ensure that this does not recur. Please refer to the corrective action plan.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 2359 2022-001
    Significant Deficiency
  • 2360 2022-002
    -
  • 578802 2022-002
    -

Programs in Audit

ALN Program Name Expenditures
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $7.97M
93.217 Family Planning_services $1.26M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $1.08M
93.268 Immunization Cooperative Agreements $49,755