Finding Text
FINDING 2020-004
The schedule of expenditures of federal awards
FEDERAL PROGRAM
Health Centers Program (Health Centers Cluster)
CFDA NUMBER AND TITLE
93.224 - Consolidated Health Centers (community health centers, migrant health centers,
health care for the homeless, and public housing primary care centers)
93.527 - Affordable Care Act (ACA) grants for new and expanded services under the health
center program.
FINDING TYPE
Material noncompliance, material weakness in internal control over compliance
CRITERIA
The schedule of expenditures of federal awards is supplemental information to the financial
statements and is required by the Uniform Guidance. Management is responsible for
maintaining and completing of the schedule of expenditures of federal awards.
CONDITION AND CONTEXT
The schedule of expenditures of federal awards was not completed within a reasonable time
period after the year end, nor did it contain all federal awards expended by the
Organization.
CAUSE
QCHC's management does not have a formal close process and material weaknesses exist
in the financial reporting and closing cycle which causes delays in reconciling the general
ledger to the subsidiary ledgers. As a result, information required to complete the schedule
of expenditures of federal awards is not available on a timely basis.
EFFECT OR POTENTIAL EFFECT
The Organization is not in compliance with federal requirements regarding the preparation
of the schedule of expenditures of federal awards.
RECOMMENDATION
The schedule of expenditures of federal awards should be maintained and completed by
management as part of their monthly close process.
Views of Responsible Officials and Planned Corrective Action
See the attached response and corrective action plan.