Finding Text
Grantor: U.S. Department of Health and Human Services
Federal Program Names: Health Center Program Cluster: Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care), COVID-19 Health Center Program (Community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care), Grants for New and Expanded Services under the Health Center Program
CFDA Numbers: 93.224 and 93.527
Criteria
In accordance with §200.328, Financial Reporting, annual audit reports of recipients of federal funds are required to be submitted to the Federal Audit Clearing House within the earlier of 30 days after the receipt of the audit report or nine months after the end of the audit period. In addition, in accordance with grant requirements, annual Federal Financial Reports ("FFR") must be submitted no later than indicated in the notice of grant award.
Condition
For the year ended June 30, 2020, the Center did not submit their annual audit in accordance with the Uniform Guidance on a timely basis. In addition, the Center submitted the annual FFR late for the budget period ended January 31, 2020.
Cause
Due to the turnover in the financial leadership, the ongoing pandemic and the closing of their prior audit firm, these reports were not submitted on time.
Effect
The Center did not comply with the appropriate rules and regulations as per the Uniform Guidance and with DHHS grant requirements.
Questioned Costs
None.
Identification of Repeat Finding
Not a repeat finding.
Recommendation
The Center should establish controls to ensure all accounting records are analyzed and proper support is available in order to ensure that that financial statement audit is submitted on a timely basis to the Federal government. The Center should also ensure that all reporting requirements are monitored and met on a timely basis.
Views of Responsible Officials
Management and the Board of Directors agree with the finding and will implement additional controls to ensure all report are submitted timely in accordance with Uniform Guidance and DHHS grant requirements.