Audit 335928

FY End
2024-06-30
Total Expended
$42.12M
Findings
2
Programs
24
Year: 2024 Accepted: 2025-01-06
Auditor: Kpmg LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
517796 2024-001 - - B
1094238 2024-001 - - B

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $15.74M Yes 0
97.036 Covid-19-Disaster Grants - Public Assistance (presidentially Declared Disasters) $10.49M Yes 1
93.498 Covid-19-Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $9.13M Yes 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.82M Yes 0
84.063 Federal Pell Grant Program $1.36M Yes 0
93.493 Congressional Directives $957,722 - 0
93.918 Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $408,561 - 0
84.425 Covid-19-Education Stabilization Fund $316,239 - 0
93.914 Hiv Emergency Relief Project Grants $197,882 - 0
93.686 Ending the Hiv Epidemic: A Plan for America � Ryan White Hiv/aids Program Parts A and B $177,139 - 0
94.016 Americorps Seniors Senior Companion Program (scp) 94.016 $173,535 - 0
93.889 National Bioterrorism Hospital Preparedness Program $138,423 - 0
84.007 Federal Supplemental Educational Opportunity Grants $93,770 Yes 0
14.241 Housing Opportunities for Persons with Aids $92,580 - 0
84.033 Federal Work-Study Program $69,673 Yes 0
93.153 Coordinated Services and Access to Research for Women, Infants, Children, and Youth $65,737 - 0
66.312 Environmental Justice Government-to-Government (ejg2g) Program $49,756 - 0
93.124 Nurse Anesthetist Traineeship $33,247 - 0
11.020 Economic Development Administration $30,000 - 0
93.866 Aging Research $29,311 - 0
93.310 Trans-Nih Research Support $24,676 - 0
93.127 Emergency Medical Services for Children $14,926 - 0
84.335 Child Care Access Means Parents in School $6,675 - 0
93.855 Allergy and Infectious Diseases Research $4,807 - 0

Contacts

Name Title Type
TXKHAN6KC279 Michael Gleason Auditee
2255267496 Susan Warren Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: For purposes of the Schedule, expenditures of federal award programs are recognized 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. De Minimis Rate Used: N Rate Explanation: The System has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Franciscan Missionaries of Our Lady Health System, Inc. and affiliated organizations (the System) under programs of the federal government for the year ended June 30, 2024. The amounts reported as federal expenditures were obtained from the System’s general ledger. Because the Schedule presents only a selected portion of the operations of the System, it is not intended to and does not present the financial position, results of operations, changes in net assets, and cash flows of the System. For purposes of the Schedule, federal expenditures include all grants, contracts, and similar agreements entered into directly between the System, the agencies and departments of the federal government, and all subawards to the System by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. The information in the Schedule is presented in accordance with the audit 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).
Title: Summary of Significant Accounting Policies Accounting Policies: For purposes of the Schedule, expenditures of federal award programs are recognized 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. De Minimis Rate Used: N Rate Explanation: The System has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. For purposes of the Schedule, expenditures of federal award programs are recognized 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. The System has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Provider Relief Funds (ALN 93.498) Accounting Policies: For purposes of the Schedule, expenditures of federal award programs are recognized 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. De Minimis Rate Used: N Rate Explanation: The System has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. As required by the granting agency, the Provider Relief Fund (PRF) amounts presented in the Schedule represent lost revenues and expenses as reported to the U.S. Department of Health and Human Services for the PRF Portal Reporting time periods of January 1, 2020 to June 30, 2024. The System did not file any Period 7 reports.
Title: Federal Direct Student Loans (ALN 84.268) Accounting Policies: For purposes of the Schedule, expenditures of federal award programs are recognized 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. De Minimis Rate Used: N Rate Explanation: The System has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The System’s Federal Direct Student Loans (Direct Loans) included in the Schedule represent loans received by students during fiscal year 2024, which were not made by the System. The System is responsible only for the performance of certain administrative duties with respect to its Direct Loans Program, and accordingly, these loans are not included in its consolidated financial statements. The System is not required to maintain the balance of the loans outstanding to students and former students of the System under these programs. Such balances are maintained and administered by the lenders and guarantors of these loans. During the year ended June 30, 2024, the System advanced the following amounts of new loans under the Direct Loan Program: Unsubsidized direct loans 84.268 $ 7,265,059 Subsidized direct loans 84.268 1,415,068 Parents’ loans for undergraduate students 84.268 528,592 Parents’ loans for graduate students 84.268 6,528,163 Total $ 15,736,882
Title: Relationship to Consolidated Financial Statements Accounting Policies: For purposes of the Schedule, expenditures of federal award programs are recognized 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. De Minimis Rate Used: N Rate Explanation: The System has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Federal expenditures are reported in the System’s 2024 consolidated financial statements as follows: Total expenditures under federal grants and contracts included in other revenue in the consolidated financial statements of the System $ 16,275,844 Less: Expenses not incurred in SEFA (548,460) COVID-19 Provider Relief Fund and American Rescue Plan(ARP) Rural Distribution recognized in prior years 9,128,716 Federal Supplemental Education Opportunity Grant – agency transactions 93,770 Federal Pell Grant Program – agency transactions 1,364,730 Federal Direct Student Loans (Direct Loan) – agency transactions 15,736,882 Federal Work Study 69,673 Federal expenditures per the schedule $ 42,121,155
Title: Expenditures of Federal Awards to Subrecipien Accounting Policies: For purposes of the Schedule, expenditures of federal award programs are recognized 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. De Minimis Rate Used: N Rate Explanation: The System has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. The System did not pass through any expenditures of federal awards to subrecipients during 2024.

Finding Details

Finding No: 2024-001 Allowable Costs/Cost Principles Federal Agency: U.S. Department of Homeland Security Pass-Through Entities: N/A Assistance Listing Number: 97.036 Federal Program: COVID-19 – Disaster Grants-Public Assistance (Presidentially Declared Disasters) Federal Award Year: Disaster 711118, declaration date March 24, 2020 Criteria or Requirement Section 200.430 compensation - personal services, more specifically (i) standards for documentation of personnel expenses notes charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Condition Found A Kronos ransomware attack did not allow the time tracking to work for the December 2021 pay period. In order to pay the employees, the System estimated the hours incurred based on an average of the last three pay cycles. Consistent with other employes impacted from this ransomware attack, the approximate 50 employees in this Federal Emergency Management Agency (FEMA) claim were asked to true-up their time for actual hours. For this pay period, the System claimed the estimated payroll of approximately $116,600 with FEMA. The System did not adjust the payroll claimed for FEMA reimbursement in subsequent months. Of the 40 sample items, two were selected from the above pay period and subsequent time sheets noted actual hours incurred were less than the estimated amount for approximately $300. Possible Cause The System’s level of detail of tracking the adjustments was not sufficient to identify the amount that should have been adjusted with FEMA. The System has support for the estimated calculation. Questioned Cost $300 Effect Failure to properly maintain adequate support for each expenditure may prevent the System from being in compliance with the requirements set forth by the Uniform Guidance. Statistical Validity The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding in the Prior Year A similar finding was not reported in prior year audit. Recommendation The System should be reminded to maintain documentation of actual time incurred when charging payroll to a federal award or to identify other allowable costs to claim. View of Responsible Officials Management concurs with this finding. Effective December 2021, the Kronos time tracking module was resolved.
Finding No: 2024-001 Allowable Costs/Cost Principles Federal Agency: U.S. Department of Homeland Security Pass-Through Entities: N/A Assistance Listing Number: 97.036 Federal Program: COVID-19 – Disaster Grants-Public Assistance (Presidentially Declared Disasters) Federal Award Year: Disaster 711118, declaration date March 24, 2020 Criteria or Requirement Section 200.430 compensation - personal services, more specifically (i) standards for documentation of personnel expenses notes charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed. Condition Found A Kronos ransomware attack did not allow the time tracking to work for the December 2021 pay period. In order to pay the employees, the System estimated the hours incurred based on an average of the last three pay cycles. Consistent with other employes impacted from this ransomware attack, the approximate 50 employees in this Federal Emergency Management Agency (FEMA) claim were asked to true-up their time for actual hours. For this pay period, the System claimed the estimated payroll of approximately $116,600 with FEMA. The System did not adjust the payroll claimed for FEMA reimbursement in subsequent months. Of the 40 sample items, two were selected from the above pay period and subsequent time sheets noted actual hours incurred were less than the estimated amount for approximately $300. Possible Cause The System’s level of detail of tracking the adjustments was not sufficient to identify the amount that should have been adjusted with FEMA. The System has support for the estimated calculation. Questioned Cost $300 Effect Failure to properly maintain adequate support for each expenditure may prevent the System from being in compliance with the requirements set forth by the Uniform Guidance. Statistical Validity The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding in the Prior Year A similar finding was not reported in prior year audit. Recommendation The System should be reminded to maintain documentation of actual time incurred when charging payroll to a federal award or to identify other allowable costs to claim. View of Responsible Officials Management concurs with this finding. Effective December 2021, the Kronos time tracking module was resolved.