Finding 588722 (2022-004)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-05-07

AI Summary

  • Core Issue: The Center failed to submit their annual audit report on time as required by the Uniform Guidance.
  • Impacted Requirements: Timely submission of audit reports to the Federal Audit Clearing House is mandatory within 30 days of receipt or 9 months after the audit period ends.
  • Recommended Follow-Up: Implement controls to ensure thorough review of accounting records and timely submission of future audits; new financial leadership is expected to address these issues.

Finding Text

Item 2022-004 - Reporting U.S. Department of Health and Human Services, COVID-19 Health Center Program Cluster (Assistance Listing Number 93.224/93.527) Criteria In accordance with the Uniform Guidance, annual audit reports of recipients of federal funds are required to be submitted to the Federal Audit Clearing House, within the earlier of 30 days after the receipt of the audit report or 9 months after the end of the audit period. Statement of Condition The Center did not submit their annual audit in accordance with the Uniform Guidance on a timely basis. Questioned Costs None Context The Center did not submit their annual audit on a timely basis. Cause Due to turnover in the financial leadership position, the Center's finance department was not able to perform detailed review of accounts and adjust books accordingly, which delayed the filing of the annual audit report. Effect The Center did not comply with the appropriate rules and regulations as per the Uniform Guidance. Identification as a Repeat Finding Condition is not a repeat finding. Recommendation We recommend that the Organization establish controls to ensure all accounting records are analyzed and proper support is available in order to ensure that the financial statement audit is submitted on a timely basis to the federal government. Views of Responsible Official Management and the Board of Directors agree. The reporting for the fiscal year 2022 audit was deficient due to turnover in the financial leadership position and the lack of appropriate resources in the finance department. The Organization is onboarding new leadership in 2023 and the Organization expects to enact the recommendations for the fiscal year 2023 audit.

Categories

Reporting

Other Findings in this Audit

  • 12275 2022-003
    Material Weakness Repeat
  • 12276 2022-004
    Material Weakness
  • 12277 2022-003
    Material Weakness Repeat
  • 12278 2022-004
    Material Weakness
  • 12279 2022-003
    Material Weakness Repeat
  • 12280 2022-004
    Material Weakness
  • 588717 2022-003
    Material Weakness Repeat
  • 588718 2022-004
    Material Weakness
  • 588719 2022-003
    Material Weakness Repeat
  • 588720 2022-004
    Material Weakness
  • 588721 2022-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.527 Grants for New and Expanded Services Under the Health Center Program $1.18M
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $1.01M
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $185,737
93.461 Covid-19 Testing for the Uninsured $21,040
93.917 Hiv Care Formula Grants $5,924