FAC Explorer

Audit 324486

FY End
2023-09-30
Total Expended
$36.93M
Findings
6
Programs
7
Organization: Guam Memorial Hospital Authority (GU)
Year: 2023 Accepted: 2024-10-10
Auditor: Ernst & Young LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
502477 2023-002 Material Weakness - B
502478 2023-003 Significant Deficiency - I
502479 2023-003 Significant Deficiency - I
1078919 2023-002 Material Weakness - B
1078920 2023-003 Significant Deficiency - I
1078921 2023-003 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $14.42M Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $6.00M Yes 2
15.875 Economic, Social, and Political Development of the Territories $1.51M - 0
32.006 Covid-19 Telehealth Program $722,000 Yes 1
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $397,500 - 0
93.889 National Bioterrorism Hospital Preparedness Program $206,740 - 0
94.006 Americorps State and National 94.006 $74,340 - 0

Contacts

Name Title Type
JSJYDHZP6PJ3 Yukari Hechanova Auditee
6716486746 Rizalito G. Paglingayen Auditor
No contacts on file

Notes to SEFA

Title: 1. Scope of Audit Accounting Policies: Basis of Accounting - Expenditures reported in the Schedule are reported on the accrual basis of accounting, consistent with the manner in which the Authority maintains its accounting records. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of the financial statements. All expenses and capital outlays are reported as expenditures. Pass-through entity identifying numbers are presented where available. Matching Costs - Matching costs, i.e., the non-federal share of certain program costs, are not included in the Schedule. Indirect Cost Rate - The Authority does not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Authority does not charge indirect costs to its Federal programs. Guam Memorial Hospital Authority (the “Authority”) is a component unit of the Government of Guam (GovGuam), a governmental entity created on July 26, 1977, under Public Law No. 14-29 as an autonomous agency of GovGuam. Only the transactions of the Authority are included within the scope of the Single Audit.
Title: 2. Basis of Presentation Accounting Policies: Basis of Accounting - Expenditures reported in the Schedule are reported on the accrual basis of accounting, consistent with the manner in which the Authority maintains its accounting records. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of the financial statements. All expenses and capital outlays are reported as expenditures. Pass-through entity identifying numbers are presented where available. Matching Costs - Matching costs, i.e., the non-federal share of certain program costs, are not included in the Schedule. Indirect Cost Rate - The Authority does not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Authority does not charge indirect costs to its Federal programs. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of the Authority under programs of the federal government for the year ended September 30, 2023. The information in this 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 the Authority, it is not intended to and does not present the net position, changes in net position or cash flows of the Authority.
Title: 3. Summary of Significant Accounting Policies Accounting Policies: Basis of Accounting - Expenditures reported in the Schedule are reported on the accrual basis of accounting, consistent with the manner in which the Authority maintains its accounting records. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of the financial statements. All expenses and capital outlays are reported as expenditures. Pass-through entity identifying numbers are presented where available. Matching Costs - Matching costs, i.e., the non-federal share of certain program costs, are not included in the Schedule. Indirect Cost Rate - The Authority does not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Authority does not charge indirect costs to its Federal programs. Basis of Accounting Expenditures reported in the Schedule are reported on the accrual basis of accounting, consistent with the manner in which the Authority maintains its accounting records. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of the financial statements. All expenses and capital outlays are reported as expenditures. Pass-through entity identifying numbers are presented where available. Matching Costs Matching costs, i.e., the non-federal share of certain program costs, are not included in the Schedule. Indirect Cost Rate The Authority does not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-002
Finding No.: 2023-002 Federal Agency: U.S. Department of Treasury AL Program: COVID-19 21.027 Coronavirus State and Local Fiscal Recovery Funds Requirement: Allowable Costs/Cost Principles Questioned Costs: $0 Criteria: According to 2 CFR 200.439, capital expenditures for special purpose equipment with a unit cost on or above $5,000 or for general purpose equipment are unallowable as direct charges, except with the prior written approval of the Federal awarding agency or pass-through entity. Condition: In our audit of the 21.027 funding, we identified that the Authority made capital expenditures on equipment without prior approval from the pass-through entity. Cause: The Authority did not consider the requirements for capital expenditures under 2 CFR 200.439. There was no procedure in place to ensure that equipment purchases were pre-approved by the federal awarding agency or pass-through entity. Effect: The Authority is in noncompliance with the applicable requirement. Amounts associated with the instances of noncompliance are material to the program, however as subsequent approval was received by the pass-through entity, no questioned costs result. Recommendation: The Authority should establish procedures to ensure compliance with the requirements under 2 CFR 200.439. This includes obtaining prior approval from the federal awarding agency or pass-through entity for such purchases and maintaining proper documentation to justify the necessity of the expenditures. Additionally, the Authority should train personnel responsible for managing federal awards on these requirements. Views of Responsible Officials: GMHA's corrective action plan does not indicate disagreement and provides planned corrective actions.
Finding 2023-003
Finding No.: 2023-003 Federal Agency: U.S. Department of Treasury Federal Communications Commission AL Program: COVID-19 21.027 Coronavirus State and Local Fiscal Recovery Funds COVID-19 32.006 Telehealth Program Requirement: Suspension & Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non- procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The Authority did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Cause: The Authority did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The Authority is in noncompliance with the applicable requirement. Recommendation: The Authority should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: GMHA's corrective action plan does not indicate disagreement and provides planned corrective actions.
Finding 2023-003
Finding No.: 2023-003 Federal Agency: U.S. Department of Treasury Federal Communications Commission AL Program: COVID-19 21.027 Coronavirus State and Local Fiscal Recovery Funds COVID-19 32.006 Telehealth Program Requirement: Suspension & Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non- procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The Authority did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Cause: The Authority did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The Authority is in noncompliance with the applicable requirement. Recommendation: The Authority should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: GMHA's corrective action plan does not indicate disagreement and provides planned corrective actions.
Finding 2023-002
Finding No.: 2023-002 Federal Agency: U.S. Department of Treasury AL Program: COVID-19 21.027 Coronavirus State and Local Fiscal Recovery Funds Requirement: Allowable Costs/Cost Principles Questioned Costs: $0 Criteria: According to 2 CFR 200.439, capital expenditures for special purpose equipment with a unit cost on or above $5,000 or for general purpose equipment are unallowable as direct charges, except with the prior written approval of the Federal awarding agency or pass-through entity. Condition: In our audit of the 21.027 funding, we identified that the Authority made capital expenditures on equipment without prior approval from the pass-through entity. Cause: The Authority did not consider the requirements for capital expenditures under 2 CFR 200.439. There was no procedure in place to ensure that equipment purchases were pre-approved by the federal awarding agency or pass-through entity. Effect: The Authority is in noncompliance with the applicable requirement. Amounts associated with the instances of noncompliance are material to the program, however as subsequent approval was received by the pass-through entity, no questioned costs result. Recommendation: The Authority should establish procedures to ensure compliance with the requirements under 2 CFR 200.439. This includes obtaining prior approval from the federal awarding agency or pass-through entity for such purchases and maintaining proper documentation to justify the necessity of the expenditures. Additionally, the Authority should train personnel responsible for managing federal awards on these requirements. Views of Responsible Officials: GMHA's corrective action plan does not indicate disagreement and provides planned corrective actions.
Finding 2023-003
Finding No.: 2023-003 Federal Agency: U.S. Department of Treasury Federal Communications Commission AL Program: COVID-19 21.027 Coronavirus State and Local Fiscal Recovery Funds COVID-19 32.006 Telehealth Program Requirement: Suspension & Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non- procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The Authority did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Cause: The Authority did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The Authority is in noncompliance with the applicable requirement. Recommendation: The Authority should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: GMHA's corrective action plan does not indicate disagreement and provides planned corrective actions.
Finding 2023-003
Finding No.: 2023-003 Federal Agency: U.S. Department of Treasury Federal Communications Commission AL Program: COVID-19 21.027 Coronavirus State and Local Fiscal Recovery Funds COVID-19 32.006 Telehealth Program Requirement: Suspension & Debarment Questioned Costs: $0 Criteria: In accordance with 2 CFR 200.214, non-Federal entities are subject to the non- procurement debarment and suspension regulations implementing 2 CFR 180. Such regulation restricts awards, subawards, and contracts with certain parties that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities. Under 2 CFR 180.300, when entering into a covered transaction with another person at the next lower tier, verification must be made that the person with whom an intent to do business with is not excluded or disqualified. Such verification can be made by (a) checking SAM Exclusions, (b) collecting a certification from that person; or (c) adding a clause or condition to the covered transaction with that person. Condition: The Authority did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Cause: The Authority did not properly document that verification was performed to identify if the selected person or entity in the covered transaction was not suspended or debarred prior to transacting with them. Effect: The Authority is in noncompliance with the applicable requirement. Recommendation: The Authority should revisit and implement its procedures to ensure that vendors and entities that are debarred, suspended, or otherwise excluded from or ineligible for participation in Federal assistance programs or activities are restricted from Federal awards, subawards and contracts. Procedures performed should be adequately maintained in the procurement files. Views of Responsible Officials: GMHA's corrective action plan does not indicate disagreement and provides planned corrective actions.