Audit 310601

FY End
2023-09-30
Total Expended
$3.97M
Findings
2
Programs
5
Year: 2023 Accepted: 2024-06-27

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
403576 2023-001 Significant Deficiency - P
980018 2023-001 Significant Deficiency - P

Contacts

Name Title Type
DLWLAM8TNFT7 Jennifer McConville Auditee
2058017548 Alex Vaughn Auditor
No contacts on file

Notes to SEFA

Title: Basis of Accounting and Summary of Significant Accounting Policies Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") summarizes the federal grant expenditures of University of Alabama Health Services Foundation, P.C. (the "Foundation") under programs of the federal government for the year ended September 30, 2023. The information presented in the Schedule is presented on the accrual basis of accounting and in accordance with the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this Schedule differ from amounts presented in or used in preparation of the financial statements. As the Schedule presents only a selected portion of the operations of the Foundation, it is not intended to and does not present the financial position, results of operations and changes in net assets, and cash flows of the Foundation. The Foundation applies its predetermined approved facilities and administrative rate when charging indirect costs to federal awards rather than the 10% de minimis cost rate as described in Section 200.414 of the Uniform Guidance. For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly or indirectly between the Foundation and agencies and departments of the federal government and all subawards to the Foundation by non-federal organizations pursuant to federal grants, contracts, and similar agreements De Minimis Rate Used: N Rate Explanation: The Foundation did not charge indirect costs to its federal award and thus the 10% de minimus indirect cost rate, as described in Section 200.414 of the Uniform Guidance, is not applicable. The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") summarizes the federal grant expenditures of University of Alabama Health Services Foundation, P.C. (the "Foundation") under programs of the federal government for the year ended September 30, 2023. The information presented in the Schedule is presented on the accrual basis of accounting and in accordance with the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this Schedule differ from amounts presented in or used in preparation of the financial statements. As the Schedule presents only a selected portion of the operations of the Foundation, it is not intended to and does not present the financial position, results of operations and changes in net assets, and cash flows of the Foundation. The Foundation applies its predetermined approved facilities and administrative rate when charging indirect costs to federal awards rather than the 10% de minimis cost rate as described in Section 200.414 of the Uniform Guidance. For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly or indirectly between the Foundation and agencies and departments of the federal government and all subawards to the Foundation by non-federal organizations pursuant to federal grants, contracts, and similar agreements.
Title: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the "Schedule") summarizes the federal grant expenditures of University of Alabama Health Services Foundation, P.C. (the "Foundation") under programs of the federal government for the year ended September 30, 2023. The information presented in the Schedule is presented on the accrual basis of accounting and in accordance with the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in this Schedule differ from amounts presented in or used in preparation of the financial statements. As the Schedule presents only a selected portion of the operations of the Foundation, it is not intended to and does not present the financial position, results of operations and changes in net assets, and cash flows of the Foundation. The Foundation applies its predetermined approved facilities and administrative rate when charging indirect costs to federal awards rather than the 10% de minimis cost rate as described in Section 200.414 of the Uniform Guidance. For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly or indirectly between the Foundation and agencies and departments of the federal government and all subawards to the Foundation by non-federal organizations pursuant to federal grants, contracts, and similar agreements De Minimis Rate Used: N Rate Explanation: The Foundation did not charge indirect costs to its federal award and thus the 10% de minimus indirect cost rate, as described in Section 200.414 of the Uniform Guidance, is not applicable. The Foundation was the recipient of funding under Assistance Listing Number 93.498, COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (“PRF”), and as required based on guidance in the 2023 OMB Compliance Supplement, the Schedule includes all ARP and Period 4 funds received between July 1, 2021 and December 31, 2021 and expended by December 31, 2022 as reported to the Department of Health and Human Services via the PRF Reporting Portal. The Schedule thus includes $2,630,118 in lost revenue. Given the timing covered by ARP and Period 4 funds, the corresponding revenue associated with the award was reflected in the Foundation's fiscal year 2022 financial statements. Additionally, lost revenue does not represent an expenditure in the Foundation's financial statements and thus is a reconciling item between the federal expenses in the Foundation's financial statements and the amount included on the Schedule.

Finding Details

Section III – Federal Award Findings and Questioned Costs 2023-001 Federal Award Omitted from Schedule of Expenditures of Federal Awards Grantor: Department of Health and Human Services Award Name: Medical Assistance Program Award Year: FY2020, FY2021, FY2022 Assistance Listing Number: 93.778 Condition During the FY 2023 Uniform Guidance audit, Management identified funds from this program that were not appropriately reported for the fiscal years ended September 30, 2022, 2021, and 2020 in the amounts of $136,828, $18,921, and $71,915, respectively. Criteria 2 CFR 200.510 Financial statements require auditees to prepare a Schedule of Expenditures of Federal Awards (the “Schedule”) for the period covered by the auditee’s financial statements, which must include in the total Federal Awards expensed as determined in accordance with 2 CFR 200.502. The information presented should be consistent with the accounting records and other federal guidance. Cause The cause of the finding was due to insufficient review of the Schedule. Effect A Schedule that is not complete and accurate could impact the scoping of an entity’s major programs and result in incomplete information being provided to the federal government. There was not an impact on our major program determinations in the prior years. Questioned Cost There are no questioned costs associated with this finding. Recommendation Management should enhance the controls in place to review and verify the completeness and accuracy of the Schedule. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.
Section III – Federal Award Findings and Questioned Costs 2023-001 Federal Award Omitted from Schedule of Expenditures of Federal Awards Grantor: Department of Health and Human Services Award Name: Medical Assistance Program Award Year: FY2020, FY2021, FY2022 Assistance Listing Number: 93.778 Condition During the FY 2023 Uniform Guidance audit, Management identified funds from this program that were not appropriately reported for the fiscal years ended September 30, 2022, 2021, and 2020 in the amounts of $136,828, $18,921, and $71,915, respectively. Criteria 2 CFR 200.510 Financial statements require auditees to prepare a Schedule of Expenditures of Federal Awards (the “Schedule”) for the period covered by the auditee’s financial statements, which must include in the total Federal Awards expensed as determined in accordance with 2 CFR 200.502. The information presented should be consistent with the accounting records and other federal guidance. Cause The cause of the finding was due to insufficient review of the Schedule. Effect A Schedule that is not complete and accurate could impact the scoping of an entity’s major programs and result in incomplete information being provided to the federal government. There was not an impact on our major program determinations in the prior years. Questioned Cost There are no questioned costs associated with this finding. Recommendation Management should enhance the controls in place to review and verify the completeness and accuracy of the Schedule. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.