Finding Text
Noncompliance and Significant Deficiency in Internal Control over Compliance for Reporting
Health Center Program Cluster
CFDA No. 93.224 and 93.527
U.S. Department of Health and Human Services
Award No. H80CS00438 and H8FCS40427
Criteria: The Organization is required to submit federal financial reports (SF‐425), the UDS
Report, and Budget Progress Reports (BPR) in accordance with established requirements and
deadlines.
Condition: Two of five reports reviewed were not submitted timely. The SF‐425 report for Award
No. H80CS00438 was due on 4/30/23 and was submitted on 6/15/23. The SF‐425 report for
Award No. H8FCS40427 was due on 4/30/23 and was submitted on 7/31/2023.
Cause: During the year, there was turnover in the accounting department.
Effect: Late submission of reports could result in a delay in future federal funding drawdowns.
Questioned costs: n/a
Context: Five reports submitted during the year were selected for testing.
Repeat Finding: 2022‐001
Recommendation: The Organization should review and evaluate grant reporting deadlines for
their federal awards and update internal control procedures for reporting.
Views of Responsible Officials: Management agrees with this finding. Management has
contracted with an outside vendor/ CPA firm to assist in the regular tracking and reporting of
grant‐related expenditures. Also, the Organization is in the process of creating the
administrative infrastructure which includes new staff, new workflow and processes that are
designed to report grant activity monthly which includes the timely submission of all grant
related reports