Finding Text
Federal Agency: Department of Health and Human Services Federal Program: Family Planning Services – Title X Federal Assistance Listing Number(s): 93.217 Award Period: July 1, 2022 to June 30, 2023 Type of Finding: Material Weakness in Internal Control over Compliance Compliance – Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 2 CFR Part 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. In addition, the federal financial reporting instructions specify the recipients share of expenditures should be reported based on the recipient share of actual cash disbursements or outlays for the reporting period. Condition: During our testing, the Organization was not accurately reporting its non federal share requirement and/ or reporting on its program expenditures from non federal sources. Context: The Organization’s Notice of Award specified a recipient share of expenditures, and use of program income. Both of these amounts were required to be reported on the Organization’s federal financial report, but amounts were reported as zero, when these amounts should have been much higher to represent compliance with these items. Cause: The Organization was not aware that it should report its recipient share and any program income on the federal financial report. Effect: The Organization did not report any amounts for recipient share of expenditures or program income on its required reporting. Recommendation: We recommend management develop procedures to ensure the required reporting submitted to the funder is complete and accurate. Additionally, systems should be put in place to both track and report its progress on the non-federal share requirement and any program income. Views of Responsible Official: Management agrees with the finding. Management was not aware of the non-federal share reporting requirements.