FAC Explorer

Audit 310615

FY End
2023-09-30
Total Expended
$26.44M
Findings
2
Programs
6
Organization: McLeod Health (SC)
Year: 2023 Accepted: 2024-06-27
Auditor: Plante & Moran PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
403599 2023-001 Significant Deficiency - B
980041 2023-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
93.498 Covid-19 - Provider Relief Fund and American Rescue Plan Rural Distribution $24.42M Yes 1
32.006 Covid-19 Telehealth Program $763,320 - 0
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $735,728 - 0
93.247 Advanced Nursing Education Grant Program $257,602 - 0
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $139,860 - 0
93.155 Rural Health Research Centers $125,306 - 0

Contacts

Name Title Type
MFMHYXDP4244 David Anderson Auditee
8437775315 Adam Stevenson Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of McLeod Health and its subsidiaries (the “Organization”) under programs of the federal government for the year ended September 30, 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 (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement, except for expenditures related to Assistance Listing Number (ALN) 93.498, Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution. PRF does not apply the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards but rather applies the U.S. Department of Health and Human Services’ guidance and frequently asked questions as outlined in the Compliance Supplement. For the PRF program, HHS has indicated that the amounts on the Schedule should be reported in correspondence with reporting requirements of the HHS PRF Portal. Payments from HHS for PRF are assigned a payment received period based upon the date of each payment from PRF was received. Each period has a specified period of availability and timing of reporting requirements. The pass through entity identifying numbers are presented where available. The Organization has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs as allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Assistance Listing, Federal Agency, and Program Name - 93.498, COVID 19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Federal Award Identification Number and Year - N/A, 2023 Pass through Entity - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - Per the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Post Payment Notice of Reporting Requirements dated February 16, 2024, recipients may use payments for eligible expenses so long as the expenses were to prevent, prepare for, and respond to coronavirus not reimbursed by other sources or that other sources are obligated to reimburse. Condition - The Organization had a control to review the allowable expenses identified under this award; however, the control was ineffective and resulted in the inclusion of a duplicate invoice in the portal submission. Questioned Costs - $1,400 Identification of How Questioned Costs Were Computed - The questioned costs total the amount of the invoice identified as a duplicate expense. Context - Out of a sample of 40 expenses, we identified expenses from 1 invoice that were incorrectly included in the detail of expenditures twice. Cause and Effect - The Organization designed controls related to identification of allowable costs, which included a review of the of the expense listing; however, the review process did not effectively identify an expense that was included twice. The failure to have an effective control in place caused the Organization to duplicate an expense within their portal submission. Recommendation - We recommend that the review process include specific procedures to ensure that no expenses have been included more than once. Views of Responsible Officials and Corrective Action Plan - An additional review process for duplicate invoice numbers will be included going forward after our contracted reviewer performs their review.
Finding 2023-001
Assistance Listing, Federal Agency, and Program Name - 93.498, COVID 19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Federal Award Identification Number and Year - N/A, 2023 Pass through Entity - N/A Finding Type - Significant deficiency Repeat Finding - No Criteria - Per the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Post Payment Notice of Reporting Requirements dated February 16, 2024, recipients may use payments for eligible expenses so long as the expenses were to prevent, prepare for, and respond to coronavirus not reimbursed by other sources or that other sources are obligated to reimburse. Condition - The Organization had a control to review the allowable expenses identified under this award; however, the control was ineffective and resulted in the inclusion of a duplicate invoice in the portal submission. Questioned Costs - $1,400 Identification of How Questioned Costs Were Computed - The questioned costs total the amount of the invoice identified as a duplicate expense. Context - Out of a sample of 40 expenses, we identified expenses from 1 invoice that were incorrectly included in the detail of expenditures twice. Cause and Effect - The Organization designed controls related to identification of allowable costs, which included a review of the of the expense listing; however, the review process did not effectively identify an expense that was included twice. The failure to have an effective control in place caused the Organization to duplicate an expense within their portal submission. Recommendation - We recommend that the review process include specific procedures to ensure that no expenses have been included more than once. Views of Responsible Officials and Corrective Action Plan - An additional review process for duplicate invoice numbers will be included going forward after our contracted reviewer performs their review.