NORTH MISSISSIPPI PRIMARY HEALTH CARE INC

2024-003 Non-Compliance Federal Program: Health Center Program Cluster – CFDA 93.224 & 93.527 Grants for Capital Development in Health Centers – CFDA 93.526 Federal Agency: U.S. Department of Health and Human Services Pass-Through Entity: N/A (Direct Award) Repeat Finding: No Questioned Costs: None Criteria: Per 2 CFR §200.512(b)(1), the auditee must submit the reporting package, which includes the Data Collection Form, to the Federal Audit Clearinghouse (FAC) within the earlier of: • 30 calendar days after receipt of the auditor’s report, or • Nine months after the end of the audit period. Condition: During our audit of the fiscal year ended March 31, 2024, we noted that the auditee submitted its FY 2023 Data Collection Form to the FAC after the required due date. Cause: The late submission was due a delay in the completion of the FY 2023 financial statement audit due primarily to turnover in key accounting staff. Effect: Failure to submit the DCF within the required timeframe results in noncompliance with federal reporting requirements and could lead to increased federal oversight, potential restrictions on future funding, and impact the auditee’s compliance history with granting agencies. Recommendation: The Organization’s should implement controls and processes to ensure financial statement audits are prepared timely to allow for Data Collection Form submissions within the required timeframe. Response: Management concurs with the finding. The delay was caused by turnover in key accounting staff which resulted in delaying the financial statement audit. Management has since implemented a staffing plan ensure timely audits and DCF submission in future periods. Management believes these measures will prevent recurrence.