Finding 976812 (2023-001)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-06-07
Audit: 308411
Organization: Optimus Health Care, Inc. (CT)
Auditor: Whittlesey PC

AI Summary

  • Core Issue: The Organization has a material weakness in financial reporting due to ineffective accounting processes and internal controls.
  • Impacted Requirements: Financial statements and grant reports did not meet GAAP and federal/state compliance due to delays in closing books and records.
  • Recommended Follow-Up: Hire and train qualified personnel to improve accounting processes and ensure timely and accurate financial reporting.

Finding Text

Finding No. 2023-001: Financial Reporting – Material Weakness, is also considered a finding under Federal Award Findings and Questioned Costs. This finding is applicable to all federal programs. Criteria An accounting system and effective internal control environment should support the preparation of the financial statements in accordance with Generally Accepted Accounting Principles (“GAAP”) and grant reports in accordance with Federal and State compliance requirements, including a robust financial close process at year end. Condition In fiscal year 2023, the Organization’s accounting processes and internal controls over financial reporting were not functioning timely to support generating complete and accurate financial information. The books and records were not closed and finalized timely. Numerous adjustments to the trial balances were made, necessitating revisions to account reconciliations, and grant schedules. Cause The Organization experienced staffing shortages and related difficulties during the fiscal year. Effect The books and records were not closed and finalized until many months after year end. Context The Organization’s accounting processes and internal controls over financial reporting were not functioning properly. Recommendation We recommend that the Organization maintain appropriately trained and experienced personnel. This will help ensure that the accounting processes and internal controls over financial reporting will function properly, and that the financial close process will be complete, accurate, and timely. Management’s Response/View of Responsible Officials Management agrees with this finding, see the Corrective Action Plan.

Categories

Internal Control / Segregation of Duties Material Weakness Reporting

Other Findings in this Audit

  • 400330 2023-001
    Material Weakness
  • 400331 2023-002
    Significant Deficiency
  • 400332 2023-003
    Material Weakness
  • 400333 2023-004
    Material Weakness
  • 400334 2023-001
    Material Weakness
  • 400335 2023-002
    Significant Deficiency
  • 400336 2023-003
    Material Weakness
  • 400337 2023-004
    Material Weakness
  • 400338 2023-001
    Material Weakness
  • 400339 2023-002
    Significant Deficiency
  • 400340 2023-003
    Material Weakness
  • 400341 2023-004
    Material Weakness
  • 400342 2023-001
    Material Weakness
  • 400343 2023-002
    Significant Deficiency
  • 400344 2023-003
    Material Weakness
  • 400345 2023-004
    Material Weakness
  • 400346 2023-001
    Material Weakness
  • 400347 2023-002
    Significant Deficiency
  • 400348 2023-003
    Material Weakness
  • 400349 2023-004
    Material Weakness
  • 400350 2023-001
    Material Weakness
  • 400351 2023-002
    Significant Deficiency
  • 400352 2023-003
    Material Weakness
  • 400353 2023-004
    Material Weakness
  • 400354 2023-001
    Material Weakness
  • 400355 2023-002
    Significant Deficiency
  • 400356 2023-003
    Material Weakness
  • 400357 2023-004
    Material Weakness
  • 400358 2023-001
    Material Weakness
  • 400359 2023-002
    Significant Deficiency
  • 400360 2023-003
    Material Weakness
  • 400361 2023-004
    Material Weakness
  • 400362 2023-001
    Material Weakness
  • 400363 2023-002
    Significant Deficiency
  • 400364 2023-003
    Material Weakness
  • 400365 2023-004
    Material Weakness
  • 400366 2023-001
    Material Weakness
  • 400367 2023-002
    Significant Deficiency
  • 400368 2023-003
    Material Weakness
  • 400369 2023-004
    Material Weakness
  • 400370 2023-001
    Material Weakness
  • 400371 2023-002
    Significant Deficiency
  • 400372 2023-003
    Material Weakness
  • 400373 2023-004
    Material Weakness
  • 976772 2023-001
    Material Weakness
  • 976773 2023-002
    Significant Deficiency
  • 976774 2023-003
    Material Weakness
  • 976775 2023-004
    Material Weakness
  • 976776 2023-001
    Material Weakness
  • 976777 2023-002
    Significant Deficiency
  • 976778 2023-003
    Material Weakness
  • 976779 2023-004
    Material Weakness
  • 976780 2023-001
    Material Weakness
  • 976781 2023-002
    Significant Deficiency
  • 976782 2023-003
    Material Weakness
  • 976783 2023-004
    Material Weakness
  • 976784 2023-001
    Material Weakness
  • 976785 2023-002
    Significant Deficiency
  • 976786 2023-003
    Material Weakness
  • 976787 2023-004
    Material Weakness
  • 976788 2023-001
    Material Weakness
  • 976789 2023-002
    Significant Deficiency
  • 976790 2023-003
    Material Weakness
  • 976791 2023-004
    Material Weakness
  • 976792 2023-001
    Material Weakness
  • 976793 2023-002
    Significant Deficiency
  • 976794 2023-003
    Material Weakness
  • 976795 2023-004
    Material Weakness
  • 976796 2023-001
    Material Weakness
  • 976797 2023-002
    Significant Deficiency
  • 976798 2023-003
    Material Weakness
  • 976799 2023-004
    Material Weakness
  • 976800 2023-001
    Material Weakness
  • 976801 2023-002
    Significant Deficiency
  • 976802 2023-003
    Material Weakness
  • 976803 2023-004
    Material Weakness
  • 976804 2023-001
    Material Weakness
  • 976805 2023-002
    Significant Deficiency
  • 976806 2023-003
    Material Weakness
  • 976807 2023-004
    Material Weakness
  • 976808 2023-001
    Material Weakness
  • 976809 2023-002
    Significant Deficiency
  • 976810 2023-003
    Material Weakness
  • 976811 2023-004
    Material Weakness
  • 976813 2023-002
    Significant Deficiency
  • 976814 2023-003
    Material Weakness
  • 976815 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $6.58M
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $453,161
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $359,298
93.918 Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $76,708
93.153 Coordinated Services and Access to Research for Women, Infants, Children, and Youth $67,178
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $56,015