FAC Explorer

Audit 307140

FY End
2023-08-31
Total Expended
$3.98M
Findings
6
Programs
8
Organization: Driscoll Children's Hospital and Subsidiaries (TX)
Year: 2023 Accepted: 2024-05-24
Auditor: Ernst & Young LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
398453 2023-001 Material Weakness - AB
398454 2023-001 Material Weakness - AB
398455 2023-001 Material Weakness - AB
974895 2023-001 Material Weakness - AB
974896 2023-001 Material Weakness - AB
974897 2023-001 Material Weakness - AB

Programs

ALN Program Spent Major Findings
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $870,112 Yes 1
93.268 Immunization Cooperative Agreements $338,670 - 0
20.600 State and Community Highway Safety $148,969 - 0
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $75,257 Yes 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $24,213 - 0
93.393 Cancer Cause and Prevention Research $6,000 - 0
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $2,555 - 0
93.399 Cancer Control $1,687 - 0

Contacts

Name Title Type
J3VQVXANJ326 Steve King Auditee
3616945146 Debbie Kohnle Auditor
No contacts on file

Notes to SEFA

Title: 1. Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized under the cost principles contained in the Uniform Guidance or 45 CFR Part 75 Appendix IX, Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Driscoll Children’s Hospital and Subsidiaries has not elected to use the de minimis indirect cost rate of 10%. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Driscoll Children’s Hospital and Subsidiaries under programs of the federal government for the year ended August 31, 2023. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Driscoll Children’s Hospital and Subsidiaries, it is not intended to and does not present the consolidated financial position, results of operations, changes in net assets, or cash flows of Driscoll Children’s Hospital and Subsidiaries.
Title: 4. Sub-recipients Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized under the cost principles contained in the Uniform Guidance or 45 CFR Part 75 Appendix IX, Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Driscoll Children’s Hospital and Subsidiaries has not elected to use the de minimis indirect cost rate of 10%. Driscoll Children’s Hospital and Subsidiaries did not pass any funds through to sub-recipients.
Title: 5. Disaster Grants- Public Assistance (Presidentially Declared Disasters) Accounting Policies: Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized under the cost principles contained in the Uniform Guidance or 45 CFR Part 75 Appendix IX, Principles for Determining Costs Applicable to Research and Development Under Grants and Contracts with Hospitals, as applicable, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Driscoll Children’s Hospital and Subsidiaries has not elected to use the de minimis indirect cost rate of 10%. For the Federal Emergency Management Agency (FEMA), Department of Homeland Security’s (DHS) Disaster Grants – Public Assistance (Presidentially Declared disasters) (Assistance Listing Number 97.036), non-federal entities must record expenditures on the Schedule when (1) FEMA has approved the non-federal entity’s project worksheet (PW) and (2) the non-federal entity has incurred the eligible expenditures. In fiscal year 2023, Driscoll Children’s Hospital received approval from the Texas Division of Emergency Management for 3 PWs related to the reimbursement of eligible costs of $1,438,900 incurred in the prior fiscal years. These previous year’s expenditures are included on the Schedule in the current year in accordance with guidance provided by FEMA.

Finding Details

Finding 2023-001
Federal Program: 97.036 COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.303 – Internal controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: Management implemented an internal control over the review and approval of a sample of FEMA expenditures during the fiscal year for compliance with activities allowed or Unallowed, allowable Costs/Cost principles. However, management did not consistently maintain evidence of the control being performed. Context: We selected 40 expenditures for testing totaling $62,863. Of the 40 expenditures, 4 expenditures totaling $28,240 did not have evidence of review and approval. Total FEMA expenditures reported on schedule of expenditures of federal awards are $1,675,897 for the year ended August 31, 2023. Effect: Unallowable expenses could be charged to the FEMA program. Cause: Management’s internal control over the review and approval FEMA expenses for compliance with activities allowed or unallowed, allowable Costs/Cost principles requirements was not consistently documented. Identification as a repeat finding, if applicable: Not Applicable. Recommendation: Management should reassess its internal controls over the review and approval of FEMA expenses to ensure documentation is retained to evidence the review and approval to support allowability of expenses. Views of responsible officials and planned corrective actions: Management agrees with the finding and will develop a plan to correct the finding.
Finding 2023-001
Federal Program: 97.036 COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.303 – Internal controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: Management implemented an internal control over the review and approval of a sample of FEMA expenditures during the fiscal year for compliance with activities allowed or Unallowed, allowable Costs/Cost principles. However, management did not consistently maintain evidence of the control being performed. Context: We selected 40 expenditures for testing totaling $62,863. Of the 40 expenditures, 4 expenditures totaling $28,240 did not have evidence of review and approval. Total FEMA expenditures reported on schedule of expenditures of federal awards are $1,675,897 for the year ended August 31, 2023. Effect: Unallowable expenses could be charged to the FEMA program. Cause: Management’s internal control over the review and approval FEMA expenses for compliance with activities allowed or unallowed, allowable Costs/Cost principles requirements was not consistently documented. Identification as a repeat finding, if applicable: Not Applicable. Recommendation: Management should reassess its internal controls over the review and approval of FEMA expenses to ensure documentation is retained to evidence the review and approval to support allowability of expenses. Views of responsible officials and planned corrective actions: Management agrees with the finding and will develop a plan to correct the finding.
Finding 2023-001
Federal Program: 97.036 COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.303 – Internal controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: Management implemented an internal control over the review and approval of a sample of FEMA expenditures during the fiscal year for compliance with activities allowed or Unallowed, allowable Costs/Cost principles. However, management did not consistently maintain evidence of the control being performed. Context: We selected 40 expenditures for testing totaling $62,863. Of the 40 expenditures, 4 expenditures totaling $28,240 did not have evidence of review and approval. Total FEMA expenditures reported on schedule of expenditures of federal awards are $1,675,897 for the year ended August 31, 2023. Effect: Unallowable expenses could be charged to the FEMA program. Cause: Management’s internal control over the review and approval FEMA expenses for compliance with activities allowed or unallowed, allowable Costs/Cost principles requirements was not consistently documented. Identification as a repeat finding, if applicable: Not Applicable. Recommendation: Management should reassess its internal controls over the review and approval of FEMA expenses to ensure documentation is retained to evidence the review and approval to support allowability of expenses. Views of responsible officials and planned corrective actions: Management agrees with the finding and will develop a plan to correct the finding.
Finding 2023-001
Federal Program: 97.036 COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.303 – Internal controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: Management implemented an internal control over the review and approval of a sample of FEMA expenditures during the fiscal year for compliance with activities allowed or Unallowed, allowable Costs/Cost principles. However, management did not consistently maintain evidence of the control being performed. Context: We selected 40 expenditures for testing totaling $62,863. Of the 40 expenditures, 4 expenditures totaling $28,240 did not have evidence of review and approval. Total FEMA expenditures reported on schedule of expenditures of federal awards are $1,675,897 for the year ended August 31, 2023. Effect: Unallowable expenses could be charged to the FEMA program. Cause: Management’s internal control over the review and approval FEMA expenses for compliance with activities allowed or unallowed, allowable Costs/Cost principles requirements was not consistently documented. Identification as a repeat finding, if applicable: Not Applicable. Recommendation: Management should reassess its internal controls over the review and approval of FEMA expenses to ensure documentation is retained to evidence the review and approval to support allowability of expenses. Views of responsible officials and planned corrective actions: Management agrees with the finding and will develop a plan to correct the finding.
Finding 2023-001
Federal Program: 97.036 COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.303 – Internal controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: Management implemented an internal control over the review and approval of a sample of FEMA expenditures during the fiscal year for compliance with activities allowed or Unallowed, allowable Costs/Cost principles. However, management did not consistently maintain evidence of the control being performed. Context: We selected 40 expenditures for testing totaling $62,863. Of the 40 expenditures, 4 expenditures totaling $28,240 did not have evidence of review and approval. Total FEMA expenditures reported on schedule of expenditures of federal awards are $1,675,897 for the year ended August 31, 2023. Effect: Unallowable expenses could be charged to the FEMA program. Cause: Management’s internal control over the review and approval FEMA expenses for compliance with activities allowed or unallowed, allowable Costs/Cost principles requirements was not consistently documented. Identification as a repeat finding, if applicable: Not Applicable. Recommendation: Management should reassess its internal controls over the review and approval of FEMA expenses to ensure documentation is retained to evidence the review and approval to support allowability of expenses. Views of responsible officials and planned corrective actions: Management agrees with the finding and will develop a plan to correct the finding.
Finding 2023-001
Federal Program: 97.036 COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) Criteria or specific requirement (including statutory, regulatory or other citation): Title 2, Subtitle A, Chapter II, Part 200, Subpart D, 200.303 – Internal controls. The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: Management implemented an internal control over the review and approval of a sample of FEMA expenditures during the fiscal year for compliance with activities allowed or Unallowed, allowable Costs/Cost principles. However, management did not consistently maintain evidence of the control being performed. Context: We selected 40 expenditures for testing totaling $62,863. Of the 40 expenditures, 4 expenditures totaling $28,240 did not have evidence of review and approval. Total FEMA expenditures reported on schedule of expenditures of federal awards are $1,675,897 for the year ended August 31, 2023. Effect: Unallowable expenses could be charged to the FEMA program. Cause: Management’s internal control over the review and approval FEMA expenses for compliance with activities allowed or unallowed, allowable Costs/Cost principles requirements was not consistently documented. Identification as a repeat finding, if applicable: Not Applicable. Recommendation: Management should reassess its internal controls over the review and approval of FEMA expenses to ensure documentation is retained to evidence the review and approval to support allowability of expenses. Views of responsible officials and planned corrective actions: Management agrees with the finding and will develop a plan to correct the finding.