Finding 7911 (2019-001)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2019
Accepted
2024-01-08
Audit: 10316
Organization: First Person Care Clinic, Inc. (NV)

AI Summary

  • Core Issue: The Clinic has a significant deficiency in internal controls, leading to delays in submitting required federal reports.
  • Impacted Requirements: Timely filing of the Federal Financial Report and single audit is mandated by the U.S. Department of Health and Human Services.
  • Recommended Follow-up: Implement clear reporting deadlines to ensure all reports are submitted accurately and on time.

Finding Text

Finding 2019 - 001 Reporting (L) Significant Deficiency in Internal Controls over Compliance Identification of the Federal Program: U.S. Department of Health and Human Services; Health Clinic Program Cluster; CFDA 93.224: 18H80CS31240. Criteria or Specific Requirement: Recipients of federal awards must establish internal controls over reports that are prepared and submitted. Finding/Condition: Pursuant to the reporting requirement set forth by the Department of Health and Human Services, the Clinic is required to file the quarterly Federal Financial Report (FFR) within 30 days of the end of the quarter and submit the single audit to the Federal Audit Clearinghouse within the sooner of 30 days of the issuance of the audit report or nine months after the end of the Clinic’s fiscal year. During our reporting period, we were unable to determine the submission of the quarterly reports and noted also that the audit was not completed and filed timely. Cause: Turnover in the Clinic’s management. Effect: The delay in submitting the required reports may lead to the granting agency to impose temporary restrictions on the drawdown of grant funds process. Questioned Cost: None Recommendation: The Clinic should establish reporting deadlines so that reports are filed accurately and on a timely basis. Views of Responsible Officials and Corrective Action Plan: See corrective action plan.

Corrective Action Plan

Finding 2019- 001 Reporting (L) Significant Deficiency in Internal Controls over Compliance. In 2019, our organization grappled with ongoing challenges when it came to meeting reporting deadlines. These hurdles were primarily a result of our small team, which consisted of only one additional staff member alongside the CEO and CFO. Despite our best endeavors, we encountered significant obstacles in our attempts to hire additional administrative support personnel. In our quest for solutions, we proactively engaged with other FQHCs and NV PCA, exploring the potential for collaborative personnel arrangements. The absence of additional support placed a considerable burden on both the CEO and CFO. They found themselves juggling a multitude of responsibilities, encompassing tasks such as mail management, deposit preparation, supply procurement, receipt matching, approval document handling, drawdown completion, federal funding expense tracking, committee and board meeting preparation, day-to-day operational oversight, and critical grants management duties. Consequently, occasional delays occurred in the submission of FFR quarterly reports, and there was limited time available for following up with State and local institutions to obtain the necessary documentation required for the audit. Additionally, accessing the Medicare Portal, which still bore the name of the previous CEO, presented challenges. All of these factors collectively impacted the timing of the Federal Audit. CEO and CFO Timeframe: 2-4 months a. Staff Augmentation: We are actively working on hiring dedicated administrative support staff who will be responsible for assisting with routine tasks. This strategic addition to our team will allow the CEO and CFO to focus more effectively on their core responsibilities. b. Streamlined Processes: We are in the process of reviewing and optimizing our internal processes. This critical step will help enhance the overall efficiency of managing tasks related to federal reporting and grants management. c. Task Delegation: With the inclusion of additional staff members, we will delegate specific responsibilities to ensure that FFR quarterly reports are not only prepared but also submitted promptly. d. Reporting Calendar: We will be implementing a comprehensive reporting calendar that clearly outlines deadlines and assigns responsibilities. This organized approach will assist us in staying on track and meeting our reporting obligations consistently. e. Training and Development: Our team is committed to continuous improvement. To this end, we will be providing training and development opportunities for our staff to enhance their skills and knowledge in grants management and federal reporting. This investment in their professional development will result in greater accuracy and efficiency. In addition to these measures, we are exploring the possibility of engaging a third-party company if we encounter challenges in hiring employees directly. We are actively in discussions with other hiring companies and Locum tenants companies as needed to ensure that we have all the resources required to address this issue effectively. By implementing these measures, we aim to overcome historical challenges related to understaffing and limited access to essential resources. The collaborative efforts of the FPCC finance team, combined with streamlined processes and improved technology, will position us to submit FFR quarterly reports and the annual submission to the federal clearinghouse promptly and efficiently.

Categories

Reporting

Other Findings in this Audit

  • 584353 2019-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.224 Health Resources and Services Administration Health Center Program (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $1.18M
93.297 Nevada Primary Care Association: Teen Pregnancy Prevention $49,950