FAC Explorer

Audit 330167

FY End
2024-02-29
Total Expended
$2.73M
Findings
4
Programs
6
Organization: Broad Top Area Medical Center, Inc. (PA)
Year: 2024 Accepted: 2024-11-27
Auditor: Loius Plung & Company

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
512434 2024-001 Material Weakness - L
512435 2024-002 Significant Deficiency - L
1088876 2024-001 Material Weakness - L
1088877 2024-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $498,552 - 0
93.211 Rural Telemedicine Grants $321,825 - 0
93.224 Community Health Centers $253,678 Yes 0
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $184,030 - 0
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $100,000 Yes 0
32.006 Covid-19 Telehealth Program $38,355 - 0

Contacts

Name Title Type
E4MBSCCKZ2N8 Chris Crawshaw Auditee
8149324851 Joseph Repko Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of the Broad Top Area Medical Center, Inc. (the "Center") under programs of the federal government for the year ended Februaruy 29, 2024. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 2000, Uniform Administrative Requirements, Cost Principle, and Audit Requirements for Federal Awards ("Uniform Guidance"). Because the Schedule presents only a selected portion of the operations of the Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Center. Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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. Passthrough entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: Broad Top does not use the de minimus cost rate because the Grants received do not reimburse for overhead expenses and therefore it is not required. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award grant activity of Broad Top Area Medical Center, Inc. (the “Center”) under programs of the federal government for the year ended February 29, 2024. The information in this Schedule (page 27) 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 Center, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Center.

Finding Details

Finding 2024-001
Finding 2024-001: Internal Control Over Financial Reporting Criteria and Condition: Internal controls over financial reporting should be designed and in place to prevent, detect, and correct material misstatement in the financial statements in a timely manner. The internal controls were unable to prevent, detect, and correct a material error in the preparation of the financial statements as of and for the year ended February 29, 2024, in a timely manner. This resulted in resulted in a significant adjustment related to assets and expenses. Cause: Existing internal controls over financial reporting require that management perform meaningful analysis of internal records and general ledger accounts on a regular basis. Managements analysis of the allowance for credit losses and credit loss expense was not substantive enough which results in financial statements that contain a material error. Questioned Costs: None Recommendations: We recommend that management improve upon established internal controls related to review of accounts receivable and the allowance for credit losses to ensure the estimate is adequate going forward. Views of Responsible Officials and Planned Corrective Actions: Management is taking steps to improve their analysis of the allowance for credit losses to ensure it is adequate for all future periods.
Finding 2024-002
Finding 2024-002: Timely Single Audit Submission Criteria and Condition: Single Audits must be completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the issued auditors’ report. or nine months after the end of the audit period. The Single Audit was not timely completed and submitted to the Federal Audit Clearinghouse within nine months form the end of the audit period. Context: The Center provided information to their prior third party auditor in a timely fashion, however the auditor of record for the year ended June 30, 2023 was unable to process the information in a timely fashion. This resulted in the financial statements and Single Audit to not be finalized and issued in order to be submitted to the Federal Audit Clearinghouse within nine months of the end of the audit period. Effect: The data collection form and reporting package for the Single Audit for the year ended February 28, 2023 were not submitted within the specified timeframe resulting in award drawdown restrictions. Questioned Costs: None Cause: Internal controls over reporting and compliance were not effective at ensuring that the required reports were being completed and submitted in a timely manner. Recommendations: We recommend that management improve their reporting processes and controls to ensure that the Single Audit is completed and submitted to the Federal Audit Clearinghouse in a timely manner. Views of Responsible Officials and Planned Corrective Actions: Management is taking steps to improve the internal controls over financial reporting and compliance to ensure that reporting can be completed in an accurate and timely manner. In addition, management has engaged a new third party auditor to help ensure timely filing. These changes include updates of internal processes.
Finding 2024-001
Finding 2024-001: Internal Control Over Financial Reporting Criteria and Condition: Internal controls over financial reporting should be designed and in place to prevent, detect, and correct material misstatement in the financial statements in a timely manner. The internal controls were unable to prevent, detect, and correct a material error in the preparation of the financial statements as of and for the year ended February 29, 2024, in a timely manner. This resulted in resulted in a significant adjustment related to assets and expenses. Cause: Existing internal controls over financial reporting require that management perform meaningful analysis of internal records and general ledger accounts on a regular basis. Managements analysis of the allowance for credit losses and credit loss expense was not substantive enough which results in financial statements that contain a material error. Questioned Costs: None Recommendations: We recommend that management improve upon established internal controls related to review of accounts receivable and the allowance for credit losses to ensure the estimate is adequate going forward. Views of Responsible Officials and Planned Corrective Actions: Management is taking steps to improve their analysis of the allowance for credit losses to ensure it is adequate for all future periods.
Finding 2024-002
Finding 2024-002: Timely Single Audit Submission Criteria and Condition: Single Audits must be completed and submitted to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the issued auditors’ report. or nine months after the end of the audit period. The Single Audit was not timely completed and submitted to the Federal Audit Clearinghouse within nine months form the end of the audit period. Context: The Center provided information to their prior third party auditor in a timely fashion, however the auditor of record for the year ended June 30, 2023 was unable to process the information in a timely fashion. This resulted in the financial statements and Single Audit to not be finalized and issued in order to be submitted to the Federal Audit Clearinghouse within nine months of the end of the audit period. Effect: The data collection form and reporting package for the Single Audit for the year ended February 28, 2023 were not submitted within the specified timeframe resulting in award drawdown restrictions. Questioned Costs: None Cause: Internal controls over reporting and compliance were not effective at ensuring that the required reports were being completed and submitted in a timely manner. Recommendations: We recommend that management improve their reporting processes and controls to ensure that the Single Audit is completed and submitted to the Federal Audit Clearinghouse in a timely manner. Views of Responsible Officials and Planned Corrective Actions: Management is taking steps to improve the internal controls over financial reporting and compliance to ensure that reporting can be completed in an accurate and timely manner. In addition, management has engaged a new third party auditor to help ensure timely filing. These changes include updates of internal processes.