Audit 32812

Assistance Listing Number, Federal Agency, and Program Name 93.155, U.S. Department of Health and Human Services, COVID 19 Rural Health Research Centers Federal Award Identification Number and Year N/A, 2022 Pass through Entity Michigan Center for Rural Health Finding Type Significant deficiency and material noncompliance with laws and regulations Repeat Finding No Criteria Per review of the federal agency grant agreements, Munson Healthcare and Subsidiaries (the "Organization") was required to complete quarterly reporting on the funding received. The reports were required to follow various directions, as outlined in the reporting template. These directions included, but were not limited to, reporting on the amount of funding spent to date and reporting on the types of expenses for which the funding was used. Condition The Organization's controls in place over reporting submissions did not identify that the guidelines were not followed related to the options selected to indicate to the awarding agency how funding was spent. Questioned Costs None Identification of How Questioned Costs Were Computed N/A Refer to context below for additional information. Context Quarterly reporting was required for each award obtained during 2022. The Organization ensured that all required reporting was completed and submitted within the required timeline; however, the Organization did not check the appropriate boxes to indicate how the funding had been spent. Additionally, the second and third quarter reports did not indicate that any funding had been spent by the Organization when, in fact, all funding was spent in the second quarter. Cause and Effect At the time reports were submitted, the Organization concluded to check various boxes, indicating all possible types of expenditures that could be used to support the funding. The decision to do this was made as a result of a large pool of expenses and grants and the need for time to sort through expenses and apply them to the grants as appropriate based on the grant terms. The selection of too many boxes ultimately led to misreporting on the uses of funding once specific expenses were allocated to the funds. Since an amended report was not submitted, the submitted reports were concluded to be inaccurate, but the schedule of expenditures of federal awards was not impacted. Recommendation We recommend Munson Health and Subsidiaries implement controls to ensure reports are completed in accordance with the grant agreement guidelines. Views of Responsible Officials and Corrective Action Plan At the end of each contract, a final reconciliation will be completed, and amended reports will be submitted as needed.

Assistance Listing Number, Federal Agency, and Program Name 93.155, U.S. Department of Health and Human Services, COVID 19 Rural Health Research Centers Federal Award Identification Number and Year N/A, 2022 Pass through Entity Michigan Center for Rural Health Finding Type Significant deficiency and material noncompliance with laws and regulations Repeat Finding No Criteria Per review of the federal agency grant agreements, Munson Healthcare and Subsidiaries (the "Organization") was required to complete quarterly reporting on the funding received. The reports were required to follow various directions, as outlined in the reporting template. These directions included, but were not limited to, reporting on the amount of funding spent to date and reporting on the types of expenses for which the funding was used. Condition The Organization's controls in place over reporting submissions did not identify that the guidelines were not followed related to the options selected to indicate to the awarding agency how funding was spent. Questioned Costs None Identification of How Questioned Costs Were Computed N/A Refer to context below for additional information. Context Quarterly reporting was required for each award obtained during 2022. The Organization ensured that all required reporting was completed and submitted within the required timeline; however, the Organization did not check the appropriate boxes to indicate how the funding had been spent. Additionally, the second and third quarter reports did not indicate that any funding had been spent by the Organization when, in fact, all funding was spent in the second quarter. Cause and Effect At the time reports were submitted, the Organization concluded to check various boxes, indicating all possible types of expenditures that could be used to support the funding. The decision to do this was made as a result of a large pool of expenses and grants and the need for time to sort through expenses and apply them to the grants as appropriate based on the grant terms. The selection of too many boxes ultimately led to misreporting on the uses of funding once specific expenses were allocated to the funds. Since an amended report was not submitted, the submitted reports were concluded to be inaccurate, but the schedule of expenditures of federal awards was not impacted. Recommendation We recommend Munson Health and Subsidiaries implement controls to ensure reports are completed in accordance with the grant agreement guidelines. Views of Responsible Officials and Corrective Action Plan At the end of each contract, a final reconciliation will be completed, and amended reports will be submitted as needed.