FAC Explorer

Audit 34070

FY End
2022-09-30
Total Expended
$14.23M
Findings
2
Programs
4
Organization: American Samoa Medical Center Authority Lbj Medical Center (AS)
Year: 2022 Accepted: 2023-05-29
Auditor: Larson & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
33571 2022-001 Significant Deficiency Yes B
610013 2022-001 Significant Deficiency Yes B

Programs

ALN Program Spent Major Findings
15.875 Economic, Social, and Political Development of the Territories $12.08M Yes 1
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.73M Yes 0
93.217 Family Planning_services $377,957 - 0
93.127 Emergency Medical Services for Children $44,441 - 0

Contacts

Name Title Type
MZ1NUZ5JJGS9 Sefanaia Kaumaitotoya Auditee
6842521914 Jon Haderlie, CPA Auditor
No contacts on file

Notes to SEFA

Title: Basis of presentation Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. American Samoa Medical Center Authority Lyndon B Johnson Tropical Medical Center has elected not to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of American Samoa Medical Center Authority Lyndon B. Johnson Tropical Medical Center under the federal government for the year ended September 30, 2022. The information in this schedule 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 schedule presents only a selected portion of the operations of American Samoa Medical Center Authority Lyndon B Johnson Tropical Medical Center, it is not intended to and does not present the financial position, changes in net position, or cash flows of American Samoa Medical Center Authority Lyndon B Johnson Tropical Medical Center.
Title: Passthrough Awards Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. American Samoa Medical Center Authority Lyndon B Johnson Tropical Medical Center has elected not to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Each of the federal awards presented on this schedule of expenditures of federal awards are directly received from the federal grantor.

Finding Details

Finding 2022-001
Criteria: 2 CFR 200.514 of the uniform guidance requires entities to have internal controls in place to monitor that expenditures are only for allowable activities and that services charged to the federal award are allowable per the applicable cost principles. In addition, a fundamental concept in a good system of internal controls is the segregation of duties; segregating access, custody, and authorization of transactions. These controls aid in mitigating risk in monitoring. Condition and context: Through inquiry and internal control testing, it was noted that the employees outside of the HR department have access to employee information within the system. This includes potential access to pay rates and other protected information inside the system. Payroll costs represent the majority of federal award expenditures for the medical center. Questioned costs: none. Cause/Effect: No questioned costs or errors were identified during testing of the award expenditures, however, the lack of separation of duties related to access to employee information and pay rates within the system increases the risk of unallowable costs being charged to the federal program. Repeat finding: yes; refer to finding 2021-003. Recommendation: With the implementation of a new system, we recommend that user access for management and staff be limited to their assigned duties. Until such systems are finalized and placed in service, periodic reviews of employee information and transactions should be performed. Any and all unauthorized changes should be documented and evidence should be retained in a secure location. View of responsible officials and corrective action plan: Management should fully integrate new system (Microsoft Dynamics-GP) by the end of this fiscal year. The new system will have the capability to limit user access according to assigned duties.
Finding 2022-001
Criteria: 2 CFR 200.514 of the uniform guidance requires entities to have internal controls in place to monitor that expenditures are only for allowable activities and that services charged to the federal award are allowable per the applicable cost principles. In addition, a fundamental concept in a good system of internal controls is the segregation of duties; segregating access, custody, and authorization of transactions. These controls aid in mitigating risk in monitoring. Condition and context: Through inquiry and internal control testing, it was noted that the employees outside of the HR department have access to employee information within the system. This includes potential access to pay rates and other protected information inside the system. Payroll costs represent the majority of federal award expenditures for the medical center. Questioned costs: none. Cause/Effect: No questioned costs or errors were identified during testing of the award expenditures, however, the lack of separation of duties related to access to employee information and pay rates within the system increases the risk of unallowable costs being charged to the federal program. Repeat finding: yes; refer to finding 2021-003. Recommendation: With the implementation of a new system, we recommend that user access for management and staff be limited to their assigned duties. Until such systems are finalized and placed in service, periodic reviews of employee information and transactions should be performed. Any and all unauthorized changes should be documented and evidence should be retained in a secure location. View of responsible officials and corrective action plan: Management should fully integrate new system (Microsoft Dynamics-GP) by the end of this fiscal year. The new system will have the capability to limit user access according to assigned duties.