FAC Explorer

Audit 317747

FY End
2023-12-31
Total Expended
$2.61M
Findings
2
Programs
6
Organization: Flushing Hospital Medical Center (NY)
Year: 2023 Accepted: 2024-08-22
Auditor: Pricewaterhousecoopers LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
484830 2023-001 - Yes L
1061272 2023-001 - Yes L

Programs

ALN Program Spent Major Findings
93.696 Certified Community Behavioral Health Clinic Expansion Grants $957,797 Yes 0
93.493 Congressional Directives $749,892 Yes 1
93.243 Medication-Assisted Treatment Prescription Drug and Opioid Addiction $548,518 - 0
93.137 Community-Driven Approaches to Address Factors Contributing to Structural Racism $221,541 - 0
93.889 National Bioterrorism Hospital Preparedness Program $95,000 - 0
93.958 Workforce Grant Community Mental Health Services Block Grant $40,000 - 0

Contacts

Name Title Type
J36RZM1LEN63 Manzar Sassani Auditee
7182066291 Kate Corgel Auditor
No contacts on file

Notes to SEFA

Title: 1- Basis for Presentation and Significant Accounting Principles Accounting Policies: Expenditures for direct costs within the Schedule are recognized using the accrual method of accounting and in accordance with The Department of Health and Human Services, U.S, Office of the Assistant Secretary Comptroller("OASC) OASC-3, A Guide for Hospitals. Under those cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: Y Rate Explanation: Flushing applies the indirect cost rate approved by the granting agency at the time of the award. In cases where the granting agency does not disclose a specific rate, FHMC utilizes the 10% de minimis indirect cost rate as described in Section 200.414 of the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) presents the federal grant activity of Flushing Hospital Medical Center and its subsidiary (“Flushing”). 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”). The purpose of the Schedule is to present a summary of those activities of Flushing for the year ended December 31, 2023 which have been financed by the federal government. For purposes of the Schedule, federal awards include any assistance provided by a federal agency directly or indirectly in the form of loans or grants, contracts, cooperative agreements, loans and loan guarantees, and other noncash assistance. Where available, pass-through entity identifying numbers are included in the Schedule. Because the Schedule presents only a selected portion of the activities of Flushing, it is not intended to and does not present either the financial position or the revenues, expenditures, and other changes in net deficit of Flushing. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in, the preparation of Flushing’s consolidated financial statements. Expenditures for direct costs within the Schedule are recognized using the accrual method of accounting and in accordance with The Department of Health and Human Services, U.S. Office of the Assistant Secretary Comptroller (“OASC”) OASC–3, A Guide for Hospitals. Under those cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Flushing applies the indirect cost rate approved by the granting agency at the time of the award. In cases where the granting agency does not disclose a specific rate, Flushing utilizes the 10% de minimis indirect cost rate as described in Section 200.414 of the Uniform Guidance

Finding Details

Finding 2023-001
Section III – Federal Award Findings and Questioned Costs 2023-001: Compliance with Reporting Requirements (Repeat Finding) Federal Agency: Department of Health and Human Services (“HHS”), Health Resources and Services Administration (“HRSA”) Assistance Listing Program Title: Congressional Directives Federal Award Project Title: Community Project Funding/ Congressionally Directed Spending ‐ Construction Assistance Listing Number: 93.493 Federal Award Identification Number: CE146567 Criteria In accordance with 2 CFR 200.328 and the notice of award (“NoA”), there are financial and other reporting requirements that the entity must complete and submit to HHS. The NoA has the following financial and other reporting requirements that were subject to testing: 1. Within 90 days of project completion, a final report is required to be submitted. The project was completed on July 28, 2023 and the final report was required to be submitted by October 26, 2023; 2. A semi-annual progress report is required to be submitted every May and December until the project is completed. The first semi-annual progress report was due December 14, 2023 and; 3. The recipient must submit an annual Federal Financial Report (“FFR”), due October 30, 2023 for the annual period August 1, 2022 to July 31, 2023. Condition The conditions of the noncompliance identified are as follows: 4. The final report, due by October 26, 2023, was not submitted to HHS until August 13, 2024. 2. As the final report was not yet completed, the December semi-annual report was required to be submitted. The semi-annual report was submitted December 21, 2023, which was past the stated deadline of December 14, 2023. 3. The FFR submitted on October 24, 2023 for the period ended July 31, 2023 included $0 of federal expenditures when $749,892 of federal expenditures were incurred through the period ended July 31, 2023 based on our review of the underlying expenditure detail. Questioned Costs None Cause Management did not have an adequate understanding of the reporting requirements of the award and the control was not designed to ensure that reports were completed and submitted to the agency in a timely manner. Effect The late submission of the final report and the December 2023 semi-annual report and the submission of inaccurate financial data in the annual FFR causes Flushing to be out of compliance with specific grant reporting requirements. Recommendation We recommend Flushing enhance its control around the monitoring of grant reporting requirements, including evaluating report due dates, confirming reporting requirements with the granting agency as appropriate, and performing reviews prior to submission to ensure all reports are being completed accurately and submitted in a timely manner. Management’s Views and Corrective Action Plan Management’s Views and Corrective Action Plan is included at the end of this report.
Finding 2023-001
Section III – Federal Award Findings and Questioned Costs 2023-001: Compliance with Reporting Requirements (Repeat Finding) Federal Agency: Department of Health and Human Services (“HHS”), Health Resources and Services Administration (“HRSA”) Assistance Listing Program Title: Congressional Directives Federal Award Project Title: Community Project Funding/ Congressionally Directed Spending ‐ Construction Assistance Listing Number: 93.493 Federal Award Identification Number: CE146567 Criteria In accordance with 2 CFR 200.328 and the notice of award (“NoA”), there are financial and other reporting requirements that the entity must complete and submit to HHS. The NoA has the following financial and other reporting requirements that were subject to testing: 1. Within 90 days of project completion, a final report is required to be submitted. The project was completed on July 28, 2023 and the final report was required to be submitted by October 26, 2023; 2. A semi-annual progress report is required to be submitted every May and December until the project is completed. The first semi-annual progress report was due December 14, 2023 and; 3. The recipient must submit an annual Federal Financial Report (“FFR”), due October 30, 2023 for the annual period August 1, 2022 to July 31, 2023. Condition The conditions of the noncompliance identified are as follows: 4. The final report, due by October 26, 2023, was not submitted to HHS until August 13, 2024. 2. As the final report was not yet completed, the December semi-annual report was required to be submitted. The semi-annual report was submitted December 21, 2023, which was past the stated deadline of December 14, 2023. 3. The FFR submitted on October 24, 2023 for the period ended July 31, 2023 included $0 of federal expenditures when $749,892 of federal expenditures were incurred through the period ended July 31, 2023 based on our review of the underlying expenditure detail. Questioned Costs None Cause Management did not have an adequate understanding of the reporting requirements of the award and the control was not designed to ensure that reports were completed and submitted to the agency in a timely manner. Effect The late submission of the final report and the December 2023 semi-annual report and the submission of inaccurate financial data in the annual FFR causes Flushing to be out of compliance with specific grant reporting requirements. Recommendation We recommend Flushing enhance its control around the monitoring of grant reporting requirements, including evaluating report due dates, confirming reporting requirements with the granting agency as appropriate, and performing reviews prior to submission to ensure all reports are being completed accurately and submitted in a timely manner. Management’s Views and Corrective Action Plan Management’s Views and Corrective Action Plan is included at the end of this report.