Finding Text
Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Health Center Program Cluster Assistance Listing Number: 93.224 and 93.527 Federal Award Identification Number: H80CS00192 Award Period: January 1, 2022 ? December 31, 2022 Type of Finding: Significant deficiency in internal control over compliance Criteria: ? 200.329(b) of the Uniform Guidance requires that the Federal awarding agency must use OMB-approved common information collections, as applicable, when providing financial and performance reporting information. As appropriate and in accordance with above mentioned information collections, the Federal awarding agency must require the recipient to relate financial data and accomplishments to performance goals and objectives of the Federal award. Condition: Management inadvertently excluded expenses of $196,816 incurred under the grant award and required to be reported on Line 10e. - Federal share of expenditures on the Federal Financial Report (SF-425) for the reporting period end date of December 31, 2022. Questioned Costs: None. Context: This condition impacts $196,816 out of total line 10 e. federal share of expenditures of $3,186,941. Cause: During the reconciliation process of line 10 e. of the SF-425 report, management reconciled to cash receipts reflected in the Payment Management System (PMS) for the reporting period ended, but was unaware that a drawdown of $196,816 it had received on December 30, 2022 was not reflected in the PMS until January 2023. Effect: Federal share of expenditures reported may differ from actual expenditures creating a circumstance of less effective monitoring of the organization's award by oversight agencies. Repeat Finding: No. Recommendation: We recommend management implement a second layer of review and approval as well as carefully review the key line items on the FFR, including reconciling cash receipts from PMS to the Organization's records of its revenue and expense, prior to submitting the report. Section III ? Federal Award Findings and Questioned Costs (Continued) Finding 2022-003 ? Reporting (continued) Views of Responsible Officials: There is no disagreement with the audit finding.