Finding Text
Finding 2022-003 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Reporting Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Health Center is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Section VI ? Conditions Required After Loan Closing in the Letter of Conditions dated November 1, 2019, for the USDA loan states that the audited financial statements must be provided to USDA within 150 days of year-end. In addition, the operating budget must be submitted to USDA within 30 days prior to the fiscal year-end. Condition: The Health Center?s FY2023 operating budget and prior year audited financial statements were not submitted to USDA within the submission timeframe. Cause: The Health Center?s FY2023 operating budget was not approved prior to the June 1, 2023, deadline and the prior year audited financial statements were not submitted timely. The audited financial statements were approved at the November 2021 board meeting, but not submitted until February 2022. Effect: The required reports are submitted outside of the time frame contained in the Letter of Conditions. Questioned Costs: None reported Context/Sampling: Sampling was not used Repeat Finding from Prior Year: No Recommendation: Management should implement processes and controls relating to the reporting requirements to comply with the Letter of Conditions Response: Management agrees with the finding.