FAC Explorer

Audit 335131

FY End
2024-06-30
Total Expended
$1.21M
Findings
4
Programs
2
Organization: Catawba Valley Medical Center (NC)
Year: 2024 Accepted: 2024-12-30
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
517178 2024-002 Significant Deficiency - C
517179 2024-003 Significant Deficiency - B
1093620 2024-002 Significant Deficiency - C
1093621 2024-003 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
93.918 Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $818,165 Yes 2
93.917 Hiv Care Formula Grants $388,554 - 0

Contacts

Name Title Type
S1GGJY9N3675 Pamela Gallagher Auditee
8283263800 Kevin Leder Auditor
No contacts on file

Notes to SEFA

Title: CONTINGENCIES Accounting Policies: BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of Catawba Valley Medical Center and Affiliate (the Medical Center) under the federal government award for the year ended June 30, 2024. The information in this SEFA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the SEFA presents only a select portion of the operations of the Medical Center, it is not intended to, and does not, present the financial position, changes in net position, or cash flows of the Medical Center. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FOR EXPENDITURES OF FEDERAL AWARDS Expenditures of the Medical Center 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 reimbursements. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Medical Center has elected not to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance. The Medical Center’s federal programs are subject to financial and compliance audits by grantor agencies which, if instances of material noncompliance are found, may result in disallowed expenditures and affect the Medical Center’s continued participation in specific programs. The amount if any, of expenditures which may be disallowed by the grantor agencies cannot be determined at this time, although the Medical Center expects such amounts, if any, to be immaterial.
Title: SUBRECIPIENTS Accounting Policies: BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of Catawba Valley Medical Center and Affiliate (the Medical Center) under the federal government award for the year ended June 30, 2024. The information in this SEFA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the SEFA presents only a select portion of the operations of the Medical Center, it is not intended to, and does not, present the financial position, changes in net position, or cash flows of the Medical Center. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FOR EXPENDITURES OF FEDERAL AWARDS Expenditures of the Medical Center 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 reimbursements. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Medical Center has elected not to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance. Of the federal expenditures presented on the Schedule, the Medical Center provided federal awards to subrecipient, AIDS Leadership Foothills-Area Alliance (ALFA) as follows: Federal Amount Assistance Provided to Program Title Listing Number Subrecipient Grants to Provide Outpatient Early Intervention Services With Respect to HIV Disease 93.918 $ 178,312 HIV Care Formula Grants 93.917 135,366
Title: CATEGORIZATION OF EXPENDITURES AND OTHER MATTERS Accounting Policies: BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (SEFA) includes the federal grant activity of Catawba Valley Medical Center and Affiliate (the Medical Center) under the federal government award for the year ended June 30, 2024. The information in this SEFA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the SEFA presents only a select portion of the operations of the Medical Center, it is not intended to, and does not, present the financial position, changes in net position, or cash flows of the Medical Center. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FOR EXPENDITURES OF FEDERAL AWARDS Expenditures of the Medical Center 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 reimbursements. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Medical Center has elected not to use the 10-percent de minims indirect cost rate allowed under the Uniform Guidance. The categorization of expenditures by program included in the schedule of expenditures of federal awards is based upon the grant documents. Changes in the categorization of expenditures occur based upon revisions to the Assistance Listing, which is issued in June and December of each year. The schedule of expenditures of federal awards for the year ended June 30, 2024 reflects Assistance Listing changes issued through May 2024.

Finding Details

Finding 2024-002
Federal agency: U.S. Department of Health and Human Services Federal program title: Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease Federal Assistance Listing Number: 93.918 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: During our cash management testing, we noted that all five drawdown selections were missing physical sign of review or approval. Criteria: It is an ideal practice to have all the cash drawdowns reviewed and approved by a second individual. This review should be documented. Questioned costs: None Cause: All the draw down requests as well as the data compiled to make such requests were reviewed in person with the preparer, and no documentation of this review was maintained. Effect: Lack of proper review and approvals could lead to incorrect draw requests. Recommendation: We recommend management maintain documentation of review and approval of the draw downs. Views of responsible officials: There is no disagreement with the audit finding. Management will update the current review and approval process going forward.
Finding 2024-003
Federal agency: U.S. Department of Health and Human Services Federal program title: Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease Federal Assistance Listing Number: 93.918 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Condition: During our cash disbursements testing, we noted one expense out of 40 selections was not allowable. An expenditure related to a retirement party was erroneously charged to the grant. Criteria: All expenses incurred under the grant must be to provide outpatient, high-quality, early intervention services and primary care related to the Human Immunodeficiency Virus (HIV) and the Acquired Immune Deficiency Syndrome (AIDS). Questioned costs: $24.61 Cause: There was an oversight in the review and approval process. Effect: Unallowable costs were charged to the grant. Recommendation: We recommend management ensure that all expenses are properly reviewed and approved before payment to ensure only allowable expenditures are approved. Views of responsible officials: There is no disagreement with the audit finding. Management will ensure all expenses are properly reviewed.
Finding 2024-002
Federal agency: U.S. Department of Health and Human Services Federal program title: Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease Federal Assistance Listing Number: 93.918 Type of Finding: Significant Deficiency in Internal Control over Compliance Condition: During our cash management testing, we noted that all five drawdown selections were missing physical sign of review or approval. Criteria: It is an ideal practice to have all the cash drawdowns reviewed and approved by a second individual. This review should be documented. Questioned costs: None Cause: All the draw down requests as well as the data compiled to make such requests were reviewed in person with the preparer, and no documentation of this review was maintained. Effect: Lack of proper review and approvals could lead to incorrect draw requests. Recommendation: We recommend management maintain documentation of review and approval of the draw downs. Views of responsible officials: There is no disagreement with the audit finding. Management will update the current review and approval process going forward.
Finding 2024-003
Federal agency: U.S. Department of Health and Human Services Federal program title: Grants to Provide Outpatient Early Intervention Services with Respect to HIV Disease Federal Assistance Listing Number: 93.918 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Condition: During our cash disbursements testing, we noted one expense out of 40 selections was not allowable. An expenditure related to a retirement party was erroneously charged to the grant. Criteria: All expenses incurred under the grant must be to provide outpatient, high-quality, early intervention services and primary care related to the Human Immunodeficiency Virus (HIV) and the Acquired Immune Deficiency Syndrome (AIDS). Questioned costs: $24.61 Cause: There was an oversight in the review and approval process. Effect: Unallowable costs were charged to the grant. Recommendation: We recommend management ensure that all expenses are properly reviewed and approved before payment to ensure only allowable expenditures are approved. Views of responsible officials: There is no disagreement with the audit finding. Management will ensure all expenses are properly reviewed.