Audit 341545

FY End
2023-08-31
Total Expended
$73.36M
Findings
24
Programs
83
Year: 2023 Accepted: 2025-02-06
Auditor: Rsm US LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
522264 2023-002 Material Weakness Yes L
522265 2023-002 Material Weakness Yes L
522266 2023-002 Material Weakness Yes L
522267 2023-002 Material Weakness Yes L
522268 2023-002 Material Weakness Yes L
522269 2023-003 Material Weakness - BL
522270 2023-003 Material Weakness - BL
522271 2023-003 Material Weakness - BL
522272 2023-003 Material Weakness - BL
522273 2023-003 Material Weakness - BL
522274 2023-004 Material Weakness - P
522275 2023-005 - - P
1098706 2023-002 Material Weakness Yes L
1098707 2023-002 Material Weakness Yes L
1098708 2023-002 Material Weakness Yes L
1098709 2023-002 Material Weakness Yes L
1098710 2023-002 Material Weakness Yes L
1098711 2023-003 Material Weakness - BL
1098712 2023-003 Material Weakness - BL
1098713 2023-003 Material Weakness - BL
1098714 2023-003 Material Weakness - BL
1098715 2023-003 Material Weakness - BL
1098716 2023-004 Material Weakness - P
1098717 2023-005 - - P

Programs

ALN Program Spent Major Findings
93.378 Integrated Care for Kids Model (a) $2.90M Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $2.00M Yes 2
93.498 Provider Relief Fund $1.16M Yes 2
93.866 Aging Research $497,804 Yes 0
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $428,870 - 0
16.575 Crime Victim Assistance $392,896 - 0
93.121 Oral Diseases and Disorders Research $305,914 Yes 0
93.RD Group A Streptococcus Molecular Epidemiology During the Covid-19 Pandemic $253,828 Yes 0
93.943 Epidemiologic Research Studies of Acquired Immunodeficiency Syndrome (aids) and Human Immunodeficiency Virus (hiv) Infection in Selected Population Groups $248,341 Yes 0
14.218 Community Development Block Grants/entitlement Grants $246,925 - 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $168,323 - 0
93.173 Research Related to Deafness and Communication Disorders $165,272 Yes 0
93.297 Teenage Pregnancy Prevention Program $159,993 Yes 0
93.945 Assistance Programs for Chronic Disease Prevention and Control $147,237 - 0
93.286 Discovery and Applied Research for Technological Innovations to Improve Human Health $142,094 Yes 0
20.600 State and Community Highway Safety $136,757 - 0
93.575 Child Care and Development Block Grant $133,832 - 0
93.318 Protecting and Improving Health Globally: Building and Strengthening Public Health Impact, Systems, Capacity and Security $110,358 - 0
93.RD Ma Covid-19 and Prams for Dads $109,729 Yes 0
93.600 Head Start $105,127 - 0
11.RD I Can Res3cue $88,813 Yes 0
93.859 Biomedical Research and Research Training $88,080 Yes 0
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $85,579 Yes 0
93.353 21st Century Cures Act - Beau Biden Cancer Moonshot $77,375 Yes 0
93.RD Towards Elimination of Hepatitis C: A Focus on Pregnancy and Exposed Infants $73,058 Yes 0
93.846 Arthritis, Musculoskeletal and Skin Diseases Research $71,003 Yes 0
93.889 National Bioterrorism Hospital Preparedness Program $66,727 - 0
93.307 Minority Health and Health Disparities Research $58,658 Yes 0
93.838 Lung Diseases Research $57,974 Yes 0
93.839 Blood Diseases and Resources Research $42,982 Yes 0
93.RD Operations and Statistics for the Retrospective Tumor Characterization Project (mp2prt) for the Perlman Study ? Leidos Biomedical Research, INC $36,151 Yes 0
84.425 Education Stabilization Fund $35,822 Yes 0
93.226 Research on Healthcare Costs, Quality and Outcomes $29,945 Yes 0
16.560 National Institute of Justice Research, Evaluation, and Development Project Grants $29,661 Yes 0
93.242 Mental Health Research Grants $29,547 Yes 0
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nation’s Health $29,446 - 0
93.279 Drug Abuse and Addiction Research Programs $27,097 Yes 0
93.313 Nih Office of Research on Women's Health $26,822 Yes 0
93.113 Environmental Health $25,931 Yes 0
93.946 Cooperative Agreements to Support State-Based Safe Motherhood and Infant Health Initiative Programs $25,040 - 0
93.394 Cancer Detection and Diagnosis Research $22,799 Yes 0
93.778 Medical Assistance Program $21,852 - 0
93.361 Nursing Research $21,802 Yes 0
93.103 Food and Drug Administration_research $21,440 Yes 0
93.080 Blood Disorder Program: Prevention, Surveillance, and Research $19,197 - 0
93.914 Hiv Emergency Relief Project Grants $19,018 - 0
93.172 Human Genome Research $18,847 Yes 0
93.RD Group A Streptococcus Molecular Epidemiology and Ecology $17,953 Yes 0
93.110 Maternal and Child Health Federal Consolidated Programs $17,452 Yes 0
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $17,134 - 0
93.865 Child Health and Human Development Extramural Research $16,985 Yes 0
93.315 Rare Disorders: Research, Surveillance, Health Promotion, and Education $16,542 Yes 0
93.RD Development and Psychometric Testing of A Pediatric Chronic Graft-Versus-Host Disease (gvhd) Symptom Scale (pcss) $15,244 Yes 0
93.989 International Research and Research Training $13,670 Yes 0
93.350 National Center for Advancing Translational Sciences $10,318 Yes 0
93.853 Extramural Research Programs in the Neurosciences and Neurological Disorders $9,969 Yes 0
93.837 Cardiovascular Diseases Research $9,846 Yes 0
93.310 Trans-Nih Research Support $9,332 Yes 0
93.396 Cancer Biology Research $8,917 Yes 0
93.RD Pop02: Pharmacokinetics, Pharmacodynamics, and Safety Profile of Understudied Drugs Administered to Children Per Standard of Care $8,749 Yes 0
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $7,130 Yes 0
93.283 Centers for Disease Control and Prevention_investigations and Technical Assistance $6,450 Yes 0
93.273 Alcohol Research Programs $6,421 Yes 0
93.RD Afm Natural History Study: A Prospective Study of Acute Flaccid Myelitis (afm) to Define Natural History, Risk, and Pathogenetic Mechanisms (dmid19-0005) $4,441 Yes 0
93.884 Grants for Primary Care Training and Enhancement $3,799 Yes 0
93.395 Cancer Treatment Research $2,300 Yes 0
93.RD Bpca Data Closeout and Dissemination $1,395 Yes 0
93.940 Hiv Prevention Activities_health Department Based $1,386 - 0
93.268 Immunization Cooperative Agreements $787 - 0
93.399 Cancer Control $760 Yes 0
12.420 Military Medical Research and Development $581 Yes 0
93.994 Maternal and Child Health Services Block Grant to the States $325 Yes 0
93.RD Comparative Safety of Complex Feeding Device Types Among Nicu Graduates $215 Yes 0
27.011 Intergovernmental Personnel Act (ipa) Mobility Program $204 - 0
93.867 Vision Research $139 Yes 0
93.855 Allergy, Immunology and Transplantation Research $106 Yes 0
93.136 Injury Prevention and Control Research and State and Community Based Programs $61 - 0
93.397 Cancer Centers Support Grants $-84 Yes 0
93.266 Health Systems Strengthening and Hiv/aids Prevention, Care and Treatment Under the President's Emergency Plan for Aids Relief $-183 Yes 0
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $-229 - 0
93.879 Medical Library Assistance $-267 Yes 0
93.393 Cancer Cause and Prevention Research $-1,606 Yes 0
93.939 Hiv Prevention Activities_non-Governmental Organization Based $-3,459 - 0

Contacts

Name Title Type
XJ7MMPHBMGM7 Virginia Lu Auditee
3125037082 Patrick Kitchen Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: 1. Basis of Presentation. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of The Children's Hospital of Chicago Medical Center and Affiliated Corporations (the Medical Center) under programs of the federal government for the year ended August 31, 2023. The information in this Schedule 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 Medical Center, it is not intended to and does not present the financial position, changes in net assts or cash flows of the Medical Center. 2. Summary of Significant Accounting Policies. Expenditures reported in the Schedule are recognized under 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. Negative amounts shown on the Schedule represents adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. 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 The Children's Hospital of Chicago Medical Center and Affiliated Corporations (the Medical Center) under programs of the federal government for the year ended August 31, 2023. The information in this Schedule 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 Medical Center, it is not intended to and does not present the financial position, changes in net assts or cash flows of the Medical Center.
Title: Summary of Significant Accounting Policies Accounting Policies: 1. Basis of Presentation. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of The Children's Hospital of Chicago Medical Center and Affiliated Corporations (the Medical Center) under programs of the federal government for the year ended August 31, 2023. The information in this Schedule 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 Medical Center, it is not intended to and does not present the financial position, changes in net assts or cash flows of the Medical Center. 2. Summary of Significant Accounting Policies. Expenditures reported in the Schedule are recognized under 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. Negative amounts shown on the Schedule represents adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures reported in the Schedule are recognized under 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. Negative amounts shown on the Schedule represents adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Title: Indirect Cost Rate Accounting Policies: 1. Basis of Presentation. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of The Children's Hospital of Chicago Medical Center and Affiliated Corporations (the Medical Center) under programs of the federal government for the year ended August 31, 2023. The information in this Schedule 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 Medical Center, it is not intended to and does not present the financial position, changes in net assts or cash flows of the Medical Center. 2. Summary of Significant Accounting Policies. Expenditures reported in the Schedule are recognized under 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. Negative amounts shown on the Schedule represents adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Medical Center has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: U.S. Department of Health and Human Services Provider Relief Funds Accounting Policies: 1. Basis of Presentation. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of The Children's Hospital of Chicago Medical Center and Affiliated Corporations (the Medical Center) under programs of the federal government for the year ended August 31, 2023. The information in this Schedule 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 Medical Center, it is not intended to and does not present the financial position, changes in net assts or cash flows of the Medical Center. 2. Summary of Significant Accounting Policies. Expenditures reported in the Schedule are recognized under 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. Negative amounts shown on the Schedule represents adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The schedule includes award activity related to the U.S. Department of Health and Human Services (HHS) Coronavirus Aid Relief and Economic Security (CARES) Act Assistance Listing Number 93.498. As required based on guidance in the 2023 OMB Compliance Supplement, the Schedule includes all Period 4 and Period 5 funds received between July 1, 2021 and June 30, 2022, and expended by June 30, 2023, as reported to Health Resources and Services Administration via the Provider Relief Fund (PRF) Reporting Portal. The Schedule thus includes $17,167,462 of total direct expenditures and lost revenue.
Title: Noncash Assistance, Insurance, Loans and Loan Guarantees Outstanding Accounting Policies: 1. Basis of Presentation. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of The Children's Hospital of Chicago Medical Center and Affiliated Corporations (the Medical Center) under programs of the federal government for the year ended August 31, 2023. The information in this Schedule 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 Medical Center, it is not intended to and does not present the financial position, changes in net assts or cash flows of the Medical Center. 2. Summary of Significant Accounting Policies. Expenditures reported in the Schedule are recognized under 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. Negative amounts shown on the Schedule represents adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Medical Center did not receive any noncash assistance during the year ended August 31, 2023. There were no federal awards expended for insurance or any loans or loan guarantees outstanding as of August 31, 2023.
Title: Restatement Accounting Policies: 1. Basis of Presentation. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of The Children's Hospital of Chicago Medical Center and Affiliated Corporations (the Medical Center) under programs of the federal government for the year ended August 31, 2023. The information in this Schedule 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 Medical Center, it is not intended to and does not present the financial position, changes in net assts or cash flows of the Medical Center. 2. Summary of Significant Accounting Policies. Expenditures reported in the Schedule are recognized under 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. Negative amounts shown on the Schedule represents adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Subsequent to the issuance of the Medical Center's original Schedule for the year ended August 31, 2023, the Medical Center identified an error in the presentation of the Schedule. The accompanying Schedule has been restated to correct the expenditures previously reported. The effects of the restatement on federal expenditures reported in the accompanying Schedule are summarized as follows. The restatement resulted in one additional major program, Coronavirus States and Local Fiscal Recovery Funds, Assistance Listing Number 21.027, being tested for the August 31, 2023 Uniform Guidance Audit.

Finding Details

Federal program: U.S. Department of Health and Human Services—ALN 93.498, Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria: Specific criteria are established by the U.S. Department of Health and Human Services (HHS) with respect to allowable cost and reporting requirements for this program, including: -Funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. -Entities may elect to calculate and report lost revenue using one of three options. For entities electing to report lost revenues using Option iii, the alternative method used to calculate lost revenue should be consistent with a narrative description of the methodology as submitted in the PRF reporting portal. Condition: In the Medical Center’s Period 5 reporting in the PRF reporting portal, the Medical Center reported lost revenue using Option iii for each reporting entity included in the schedule of expenditures of federal awards that received PRF. The alternative method used to calculate lost revenues was budget-toactual revenues for the period from January 2020 through August 2020 and year-over-year actual revenues for the period from September 2020 through August 2021. In the lost revenue calculation for the third quarter of calendar year 2021 for two of the Medical Center’s reporting entities, the Medical Center understated actual revenues by $1,095,540 in total. Context: The Medical Center did not report lost revenues for the third quarter of 2021 for any entity, because actual revenue exceeded the prior year’s actual revenue for each entity. Had the correct amounts of actual revenue been reported for the third quarter of 2021, actual revenue for the quarter still would have exceeded the prior year’s actual revenue for each entity and no lost revenue would be reported. Cause: In preparing the Period 5 reports, management used preliminary estimates of revenue for the month of August 2021 in error. Review processes were performed before the reports were submitted, but these reviews did not detect and correct the errors before submission. Effect: The Medical Center’s Period 5 reporting in the PRF reporting portal included an inaccurate amount of actual revenue for the third quarter of calendar year 2021 for two reporting entities, which was not consistent with methodology described in the Option iii narrative submitted. The PRF reporting correctly reported no lost revenue for the quarter. Questioned costs: None. Repeat finding: Yes, the misreporting of actual revenues for the third quarter of 2021 for all of the Medical Center’s reporting entities was also included in finding 2022-001 in the prior year. This error was corrected in the Period 4 and/or Period 5 reports for the Medical Center’s reporting entities except for two reporting entities. Recommendation: We recommend that management’s review of the lost revenue calculations and reporting in the PRF reporting portal include review of documentation supporting each dollar amount included in lost revenue calculation. Views of responsible officials of the auditee: Management agrees with the finding and the auditor’s recommendation.
Federal program: U.S. Department of Health and Human Services—ALN 93.498, Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria: Specific criteria are established by the U.S. Department of Health and Human Services (HHS) with respect to allowable cost and reporting requirements for this program, including: -Funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. -Entities may elect to calculate and report lost revenue using one of three options. For entities electing to report lost revenues using Option iii, the alternative method used to calculate lost revenue should be consistent with a narrative description of the methodology as submitted in the PRF reporting portal. Condition: In the Medical Center’s Period 5 reporting in the PRF reporting portal, the Medical Center reported lost revenue using Option iii for each reporting entity included in the schedule of expenditures of federal awards that received PRF. The alternative method used to calculate lost revenues was budget-toactual revenues for the period from January 2020 through August 2020 and year-over-year actual revenues for the period from September 2020 through August 2021. In the lost revenue calculation for the third quarter of calendar year 2021 for two of the Medical Center’s reporting entities, the Medical Center understated actual revenues by $1,095,540 in total. Context: The Medical Center did not report lost revenues for the third quarter of 2021 for any entity, because actual revenue exceeded the prior year’s actual revenue for each entity. Had the correct amounts of actual revenue been reported for the third quarter of 2021, actual revenue for the quarter still would have exceeded the prior year’s actual revenue for each entity and no lost revenue would be reported. Cause: In preparing the Period 5 reports, management used preliminary estimates of revenue for the month of August 2021 in error. Review processes were performed before the reports were submitted, but these reviews did not detect and correct the errors before submission. Effect: The Medical Center’s Period 5 reporting in the PRF reporting portal included an inaccurate amount of actual revenue for the third quarter of calendar year 2021 for two reporting entities, which was not consistent with methodology described in the Option iii narrative submitted. The PRF reporting correctly reported no lost revenue for the quarter. Questioned costs: None. Repeat finding: Yes, the misreporting of actual revenues for the third quarter of 2021 for all of the Medical Center’s reporting entities was also included in finding 2022-001 in the prior year. This error was corrected in the Period 4 and/or Period 5 reports for the Medical Center’s reporting entities except for two reporting entities. Recommendation: We recommend that management’s review of the lost revenue calculations and reporting in the PRF reporting portal include review of documentation supporting each dollar amount included in lost revenue calculation. Views of responsible officials of the auditee: Management agrees with the finding and the auditor’s recommendation.
Federal program: U.S. Department of Health and Human Services—ALN 93.498, Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria: Specific criteria are established by the U.S. Department of Health and Human Services (HHS) with respect to allowable cost and reporting requirements for this program, including: -Funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. -Entities may elect to calculate and report lost revenue using one of three options. For entities electing to report lost revenues using Option iii, the alternative method used to calculate lost revenue should be consistent with a narrative description of the methodology as submitted in the PRF reporting portal. Condition: In the Medical Center’s Period 5 reporting in the PRF reporting portal, the Medical Center reported lost revenue using Option iii for each reporting entity included in the schedule of expenditures of federal awards that received PRF. The alternative method used to calculate lost revenues was budget-toactual revenues for the period from January 2020 through August 2020 and year-over-year actual revenues for the period from September 2020 through August 2021. In the lost revenue calculation for the third quarter of calendar year 2021 for two of the Medical Center’s reporting entities, the Medical Center understated actual revenues by $1,095,540 in total. Context: The Medical Center did not report lost revenues for the third quarter of 2021 for any entity, because actual revenue exceeded the prior year’s actual revenue for each entity. Had the correct amounts of actual revenue been reported for the third quarter of 2021, actual revenue for the quarter still would have exceeded the prior year’s actual revenue for each entity and no lost revenue would be reported. Cause: In preparing the Period 5 reports, management used preliminary estimates of revenue for the month of August 2021 in error. Review processes were performed before the reports were submitted, but these reviews did not detect and correct the errors before submission. Effect: The Medical Center’s Period 5 reporting in the PRF reporting portal included an inaccurate amount of actual revenue for the third quarter of calendar year 2021 for two reporting entities, which was not consistent with methodology described in the Option iii narrative submitted. The PRF reporting correctly reported no lost revenue for the quarter. Questioned costs: None. Repeat finding: Yes, the misreporting of actual revenues for the third quarter of 2021 for all of the Medical Center’s reporting entities was also included in finding 2022-001 in the prior year. This error was corrected in the Period 4 and/or Period 5 reports for the Medical Center’s reporting entities except for two reporting entities. Recommendation: We recommend that management’s review of the lost revenue calculations and reporting in the PRF reporting portal include review of documentation supporting each dollar amount included in lost revenue calculation. Views of responsible officials of the auditee: Management agrees with the finding and the auditor’s recommendation.
Federal program: U.S. Department of Health and Human Services—ALN 93.498, Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria: Specific criteria are established by the U.S. Department of Health and Human Services (HHS) with respect to allowable cost and reporting requirements for this program, including: -Funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. -Entities may elect to calculate and report lost revenue using one of three options. For entities electing to report lost revenues using Option iii, the alternative method used to calculate lost revenue should be consistent with a narrative description of the methodology as submitted in the PRF reporting portal. Condition: In the Medical Center’s Period 5 reporting in the PRF reporting portal, the Medical Center reported lost revenue using Option iii for each reporting entity included in the schedule of expenditures of federal awards that received PRF. The alternative method used to calculate lost revenues was budget-toactual revenues for the period from January 2020 through August 2020 and year-over-year actual revenues for the period from September 2020 through August 2021. In the lost revenue calculation for the third quarter of calendar year 2021 for two of the Medical Center’s reporting entities, the Medical Center understated actual revenues by $1,095,540 in total. Context: The Medical Center did not report lost revenues for the third quarter of 2021 for any entity, because actual revenue exceeded the prior year’s actual revenue for each entity. Had the correct amounts of actual revenue been reported for the third quarter of 2021, actual revenue for the quarter still would have exceeded the prior year’s actual revenue for each entity and no lost revenue would be reported. Cause: In preparing the Period 5 reports, management used preliminary estimates of revenue for the month of August 2021 in error. Review processes were performed before the reports were submitted, but these reviews did not detect and correct the errors before submission. Effect: The Medical Center’s Period 5 reporting in the PRF reporting portal included an inaccurate amount of actual revenue for the third quarter of calendar year 2021 for two reporting entities, which was not consistent with methodology described in the Option iii narrative submitted. The PRF reporting correctly reported no lost revenue for the quarter. Questioned costs: None. Repeat finding: Yes, the misreporting of actual revenues for the third quarter of 2021 for all of the Medical Center’s reporting entities was also included in finding 2022-001 in the prior year. This error was corrected in the Period 4 and/or Period 5 reports for the Medical Center’s reporting entities except for two reporting entities. Recommendation: We recommend that management’s review of the lost revenue calculations and reporting in the PRF reporting portal include review of documentation supporting each dollar amount included in lost revenue calculation. Views of responsible officials of the auditee: Management agrees with the finding and the auditor’s recommendation.
Federal program: U.S. Department of Health and Human Services—ALN 93.498, Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria: Specific criteria are established by the U.S. Department of Health and Human Services (HHS) with respect to allowable cost and reporting requirements for this program, including: -Funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. -Entities may elect to calculate and report lost revenue using one of three options. For entities electing to report lost revenues using Option iii, the alternative method used to calculate lost revenue should be consistent with a narrative description of the methodology as submitted in the PRF reporting portal. Condition: In the Medical Center’s Period 5 reporting in the PRF reporting portal, the Medical Center reported lost revenue using Option iii for each reporting entity included in the schedule of expenditures of federal awards that received PRF. The alternative method used to calculate lost revenues was budget-toactual revenues for the period from January 2020 through August 2020 and year-over-year actual revenues for the period from September 2020 through August 2021. In the lost revenue calculation for the third quarter of calendar year 2021 for two of the Medical Center’s reporting entities, the Medical Center understated actual revenues by $1,095,540 in total. Context: The Medical Center did not report lost revenues for the third quarter of 2021 for any entity, because actual revenue exceeded the prior year’s actual revenue for each entity. Had the correct amounts of actual revenue been reported for the third quarter of 2021, actual revenue for the quarter still would have exceeded the prior year’s actual revenue for each entity and no lost revenue would be reported. Cause: In preparing the Period 5 reports, management used preliminary estimates of revenue for the month of August 2021 in error. Review processes were performed before the reports were submitted, but these reviews did not detect and correct the errors before submission. Effect: The Medical Center’s Period 5 reporting in the PRF reporting portal included an inaccurate amount of actual revenue for the third quarter of calendar year 2021 for two reporting entities, which was not consistent with methodology described in the Option iii narrative submitted. The PRF reporting correctly reported no lost revenue for the quarter. Questioned costs: None. Repeat finding: Yes, the misreporting of actual revenues for the third quarter of 2021 for all of the Medical Center’s reporting entities was also included in finding 2022-001 in the prior year. This error was corrected in the Period 4 and/or Period 5 reports for the Medical Center’s reporting entities except for two reporting entities. Recommendation: We recommend that management’s review of the lost revenue calculations and reporting in the PRF reporting portal include review of documentation supporting each dollar amount included in lost revenue calculation. Views of responsible officials of the auditee: Management agrees with the finding and the auditor’s recommendation.
Federal program: U.S. Department of Health and Human Services—ALN 93.498, Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria: Specific criteria are established by the U.S. Department of Health and Human Services (HHS) with respect to allowable cost and reporting requirements for this program, including: -Funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: In the Medical Center’s Period 5 reporting in the PRF reporting portal, for one reporting entity, the Medical Center reported other PRF expenses of $855,130. These same expenses had previously been reported in this reporting entity's Period 2 PRF reporting and, therefore, should not have been reported again in Period 5. Context: The $855,130 of duplicate PRF expenses identified were the only PRF expenses reported in either Period 4 or Period 5 by any of the Medical Center’s reporting entities; therefore, the total amount of likely questioned costs is the same as the known questioned costs of $855,130. Cause: In preparing the Period 5 reports, management included in error PRF expenses that had previously been reported in Period 2. Review processes were performed before the reports were submitted, but these reviews did not detect and correct the error before submission. Effect: The Medical Center’s Period 5 reporting in the PRF reporting portal included questioned costs for one reporting entity. On that reporting entity’s submitted Period 5 report, total PRF expenses and lost revenues available to be used for Period 5 exceeded PRF payments received by $3,810,237. After correction of the error, total PRF expenses and lost revenues available to be used for Period 5 would still exceed PRF payments received by $2,955,107. Thus, federal expenditures reported for ALN 93.498 in the schedule of expenditures of federal awards for the year ended August 31, 2023, are unaffected by this error. Questioned costs: $855,130 of known and likely questioned costs for PRF expenses reported in Period 5. Repeat finding: No. Recommendation: We recommend that management’s review of the draft reporting in the PRF reporting portal include review of documentation supporting all reported PRF expenses for the period and a review and reconciliation of the PRF expenses previously reported in prior periods. Views of responsible officials of the auditee: Management agrees with the finding and the auditor’s recommendation.
Federal program: U.S. Department of Health and Human Services—ALN 93.498, Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria: Specific criteria are established by the U.S. Department of Health and Human Services (HHS) with respect to allowable cost and reporting requirements for this program, including: -Funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: In the Medical Center’s Period 5 reporting in the PRF reporting portal, for one reporting entity, the Medical Center reported other PRF expenses of $855,130. These same expenses had previously been reported in this reporting entity's Period 2 PRF reporting and, therefore, should not have been reported again in Period 5. Context: The $855,130 of duplicate PRF expenses identified were the only PRF expenses reported in either Period 4 or Period 5 by any of the Medical Center’s reporting entities; therefore, the total amount of likely questioned costs is the same as the known questioned costs of $855,130. Cause: In preparing the Period 5 reports, management included in error PRF expenses that had previously been reported in Period 2. Review processes were performed before the reports were submitted, but these reviews did not detect and correct the error before submission. Effect: The Medical Center’s Period 5 reporting in the PRF reporting portal included questioned costs for one reporting entity. On that reporting entity’s submitted Period 5 report, total PRF expenses and lost revenues available to be used for Period 5 exceeded PRF payments received by $3,810,237. After correction of the error, total PRF expenses and lost revenues available to be used for Period 5 would still exceed PRF payments received by $2,955,107. Thus, federal expenditures reported for ALN 93.498 in the schedule of expenditures of federal awards for the year ended August 31, 2023, are unaffected by this error. Questioned costs: $855,130 of known and likely questioned costs for PRF expenses reported in Period 5. Repeat finding: No. Recommendation: We recommend that management’s review of the draft reporting in the PRF reporting portal include review of documentation supporting all reported PRF expenses for the period and a review and reconciliation of the PRF expenses previously reported in prior periods. Views of responsible officials of the auditee: Management agrees with the finding and the auditor’s recommendation.
Federal program: U.S. Department of Health and Human Services—ALN 93.498, Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria: Specific criteria are established by the U.S. Department of Health and Human Services (HHS) with respect to allowable cost and reporting requirements for this program, including: -Funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: In the Medical Center’s Period 5 reporting in the PRF reporting portal, for one reporting entity, the Medical Center reported other PRF expenses of $855,130. These same expenses had previously been reported in this reporting entity's Period 2 PRF reporting and, therefore, should not have been reported again in Period 5. Context: The $855,130 of duplicate PRF expenses identified were the only PRF expenses reported in either Period 4 or Period 5 by any of the Medical Center’s reporting entities; therefore, the total amount of likely questioned costs is the same as the known questioned costs of $855,130. Cause: In preparing the Period 5 reports, management included in error PRF expenses that had previously been reported in Period 2. Review processes were performed before the reports were submitted, but these reviews did not detect and correct the error before submission. Effect: The Medical Center’s Period 5 reporting in the PRF reporting portal included questioned costs for one reporting entity. On that reporting entity’s submitted Period 5 report, total PRF expenses and lost revenues available to be used for Period 5 exceeded PRF payments received by $3,810,237. After correction of the error, total PRF expenses and lost revenues available to be used for Period 5 would still exceed PRF payments received by $2,955,107. Thus, federal expenditures reported for ALN 93.498 in the schedule of expenditures of federal awards for the year ended August 31, 2023, are unaffected by this error. Questioned costs: $855,130 of known and likely questioned costs for PRF expenses reported in Period 5. Repeat finding: No. Recommendation: We recommend that management’s review of the draft reporting in the PRF reporting portal include review of documentation supporting all reported PRF expenses for the period and a review and reconciliation of the PRF expenses previously reported in prior periods. Views of responsible officials of the auditee: Management agrees with the finding and the auditor’s recommendation.
Federal program: U.S. Department of Health and Human Services—ALN 93.498, Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria: Specific criteria are established by the U.S. Department of Health and Human Services (HHS) with respect to allowable cost and reporting requirements for this program, including: -Funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: In the Medical Center’s Period 5 reporting in the PRF reporting portal, for one reporting entity, the Medical Center reported other PRF expenses of $855,130. These same expenses had previously been reported in this reporting entity's Period 2 PRF reporting and, therefore, should not have been reported again in Period 5. Context: The $855,130 of duplicate PRF expenses identified were the only PRF expenses reported in either Period 4 or Period 5 by any of the Medical Center’s reporting entities; therefore, the total amount of likely questioned costs is the same as the known questioned costs of $855,130. Cause: In preparing the Period 5 reports, management included in error PRF expenses that had previously been reported in Period 2. Review processes were performed before the reports were submitted, but these reviews did not detect and correct the error before submission. Effect: The Medical Center’s Period 5 reporting in the PRF reporting portal included questioned costs for one reporting entity. On that reporting entity’s submitted Period 5 report, total PRF expenses and lost revenues available to be used for Period 5 exceeded PRF payments received by $3,810,237. After correction of the error, total PRF expenses and lost revenues available to be used for Period 5 would still exceed PRF payments received by $2,955,107. Thus, federal expenditures reported for ALN 93.498 in the schedule of expenditures of federal awards for the year ended August 31, 2023, are unaffected by this error. Questioned costs: $855,130 of known and likely questioned costs for PRF expenses reported in Period 5. Repeat finding: No. Recommendation: We recommend that management’s review of the draft reporting in the PRF reporting portal include review of documentation supporting all reported PRF expenses for the period and a review and reconciliation of the PRF expenses previously reported in prior periods. Views of responsible officials of the auditee: Management agrees with the finding and the auditor’s recommendation.
Federal program: U.S. Department of Health and Human Services—ALN 93.498, Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria: Specific criteria are established by the U.S. Department of Health and Human Services (HHS) with respect to allowable cost and reporting requirements for this program, including: -Funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: In the Medical Center’s Period 5 reporting in the PRF reporting portal, for one reporting entity, the Medical Center reported other PRF expenses of $855,130. These same expenses had previously been reported in this reporting entity's Period 2 PRF reporting and, therefore, should not have been reported again in Period 5. Context: The $855,130 of duplicate PRF expenses identified were the only PRF expenses reported in either Period 4 or Period 5 by any of the Medical Center’s reporting entities; therefore, the total amount of likely questioned costs is the same as the known questioned costs of $855,130. Cause: In preparing the Period 5 reports, management included in error PRF expenses that had previously been reported in Period 2. Review processes were performed before the reports were submitted, but these reviews did not detect and correct the error before submission. Effect: The Medical Center’s Period 5 reporting in the PRF reporting portal included questioned costs for one reporting entity. On that reporting entity’s submitted Period 5 report, total PRF expenses and lost revenues available to be used for Period 5 exceeded PRF payments received by $3,810,237. After correction of the error, total PRF expenses and lost revenues available to be used for Period 5 would still exceed PRF payments received by $2,955,107. Thus, federal expenditures reported for ALN 93.498 in the schedule of expenditures of federal awards for the year ended August 31, 2023, are unaffected by this error. Questioned costs: $855,130 of known and likely questioned costs for PRF expenses reported in Period 5. Repeat finding: No. Recommendation: We recommend that management’s review of the draft reporting in the PRF reporting portal include review of documentation supporting all reported PRF expenses for the period and a review and reconciliation of the PRF expenses previously reported in prior periods. Views of responsible officials of the auditee: Management agrees with the finding and the auditor’s recommendation.
Federal program: U.S. Department of the Treasury; Passed-through Illinois Department of Public Health-ALN 21.027, COVID-19 Coronavirus State and Local Fiscal Recovery Funds. Criteria: In accordance with 2 CFR 200 200.510(b), the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements which must include the total federal awards expended as determined in accordance with 2 CFR 200.502. Condition: The Medical Center's SEFA for the year ended August 31, 2023, which is supplementary information to the Medical Center's financial statements, was restated to include an additional $2,000,000 of federal expenditures for the Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing Number 21.027. Management's processes and internal controls for ensuring that all federal funds expended by the Medical Center are captured and reported in the SEFA were inadquate to detect the omission of the $2,000,000 of federal expenditures. Context: The additional $2,000,000 of federal expenditures increased the total federal expenditures for the Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing Number 21.027 to $2,899,890. This resulted in the reissuance of the single audit report. Cause: The additional federal program expenditures for the Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing Number 21.027, were provided under a separate pass-through grant and were inadvertently omitted from the SEFA due to an oversight in the preparation of the SEFA resulting in part from and coinciding with the turnover of key personnel involved with and having oversight over the $2,000,000 award. Effect: Improper reporting of federal expenditures can result in material errors on the SEFA leading to inaccurate major program determination. In this instance an error did result in the identification of an additional major program. Repeat finding: No. Recommendation: We recommend that management enhance its process and internal controls around the timely identification of federal awards and preparation of the SEFA to ensure completeness and accuracy of the SEFA. Views of responsible officials of the auditee: Management agrees with the finding and the auditor's recommendation.
Federal Program: U.S. Department of the Treasury-ALN 21.027, Coronavirus State and Local Fiscal Recovery Funds. Questioned costs: None. See item 2023-004.
Federal program: U.S. Department of Health and Human Services—ALN 93.498, Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria: Specific criteria are established by the U.S. Department of Health and Human Services (HHS) with respect to allowable cost and reporting requirements for this program, including: -Funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. -Entities may elect to calculate and report lost revenue using one of three options. For entities electing to report lost revenues using Option iii, the alternative method used to calculate lost revenue should be consistent with a narrative description of the methodology as submitted in the PRF reporting portal. Condition: In the Medical Center’s Period 5 reporting in the PRF reporting portal, the Medical Center reported lost revenue using Option iii for each reporting entity included in the schedule of expenditures of federal awards that received PRF. The alternative method used to calculate lost revenues was budget-toactual revenues for the period from January 2020 through August 2020 and year-over-year actual revenues for the period from September 2020 through August 2021. In the lost revenue calculation for the third quarter of calendar year 2021 for two of the Medical Center’s reporting entities, the Medical Center understated actual revenues by $1,095,540 in total. Context: The Medical Center did not report lost revenues for the third quarter of 2021 for any entity, because actual revenue exceeded the prior year’s actual revenue for each entity. Had the correct amounts of actual revenue been reported for the third quarter of 2021, actual revenue for the quarter still would have exceeded the prior year’s actual revenue for each entity and no lost revenue would be reported. Cause: In preparing the Period 5 reports, management used preliminary estimates of revenue for the month of August 2021 in error. Review processes were performed before the reports were submitted, but these reviews did not detect and correct the errors before submission. Effect: The Medical Center’s Period 5 reporting in the PRF reporting portal included an inaccurate amount of actual revenue for the third quarter of calendar year 2021 for two reporting entities, which was not consistent with methodology described in the Option iii narrative submitted. The PRF reporting correctly reported no lost revenue for the quarter. Questioned costs: None. Repeat finding: Yes, the misreporting of actual revenues for the third quarter of 2021 for all of the Medical Center’s reporting entities was also included in finding 2022-001 in the prior year. This error was corrected in the Period 4 and/or Period 5 reports for the Medical Center’s reporting entities except for two reporting entities. Recommendation: We recommend that management’s review of the lost revenue calculations and reporting in the PRF reporting portal include review of documentation supporting each dollar amount included in lost revenue calculation. Views of responsible officials of the auditee: Management agrees with the finding and the auditor’s recommendation.
Federal program: U.S. Department of Health and Human Services—ALN 93.498, Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria: Specific criteria are established by the U.S. Department of Health and Human Services (HHS) with respect to allowable cost and reporting requirements for this program, including: -Funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. -Entities may elect to calculate and report lost revenue using one of three options. For entities electing to report lost revenues using Option iii, the alternative method used to calculate lost revenue should be consistent with a narrative description of the methodology as submitted in the PRF reporting portal. Condition: In the Medical Center’s Period 5 reporting in the PRF reporting portal, the Medical Center reported lost revenue using Option iii for each reporting entity included in the schedule of expenditures of federal awards that received PRF. The alternative method used to calculate lost revenues was budget-toactual revenues for the period from January 2020 through August 2020 and year-over-year actual revenues for the period from September 2020 through August 2021. In the lost revenue calculation for the third quarter of calendar year 2021 for two of the Medical Center’s reporting entities, the Medical Center understated actual revenues by $1,095,540 in total. Context: The Medical Center did not report lost revenues for the third quarter of 2021 for any entity, because actual revenue exceeded the prior year’s actual revenue for each entity. Had the correct amounts of actual revenue been reported for the third quarter of 2021, actual revenue for the quarter still would have exceeded the prior year’s actual revenue for each entity and no lost revenue would be reported. Cause: In preparing the Period 5 reports, management used preliminary estimates of revenue for the month of August 2021 in error. Review processes were performed before the reports were submitted, but these reviews did not detect and correct the errors before submission. Effect: The Medical Center’s Period 5 reporting in the PRF reporting portal included an inaccurate amount of actual revenue for the third quarter of calendar year 2021 for two reporting entities, which was not consistent with methodology described in the Option iii narrative submitted. The PRF reporting correctly reported no lost revenue for the quarter. Questioned costs: None. Repeat finding: Yes, the misreporting of actual revenues for the third quarter of 2021 for all of the Medical Center’s reporting entities was also included in finding 2022-001 in the prior year. This error was corrected in the Period 4 and/or Period 5 reports for the Medical Center’s reporting entities except for two reporting entities. Recommendation: We recommend that management’s review of the lost revenue calculations and reporting in the PRF reporting portal include review of documentation supporting each dollar amount included in lost revenue calculation. Views of responsible officials of the auditee: Management agrees with the finding and the auditor’s recommendation.
Federal program: U.S. Department of Health and Human Services—ALN 93.498, Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria: Specific criteria are established by the U.S. Department of Health and Human Services (HHS) with respect to allowable cost and reporting requirements for this program, including: -Funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. -Entities may elect to calculate and report lost revenue using one of three options. For entities electing to report lost revenues using Option iii, the alternative method used to calculate lost revenue should be consistent with a narrative description of the methodology as submitted in the PRF reporting portal. Condition: In the Medical Center’s Period 5 reporting in the PRF reporting portal, the Medical Center reported lost revenue using Option iii for each reporting entity included in the schedule of expenditures of federal awards that received PRF. The alternative method used to calculate lost revenues was budget-toactual revenues for the period from January 2020 through August 2020 and year-over-year actual revenues for the period from September 2020 through August 2021. In the lost revenue calculation for the third quarter of calendar year 2021 for two of the Medical Center’s reporting entities, the Medical Center understated actual revenues by $1,095,540 in total. Context: The Medical Center did not report lost revenues for the third quarter of 2021 for any entity, because actual revenue exceeded the prior year’s actual revenue for each entity. Had the correct amounts of actual revenue been reported for the third quarter of 2021, actual revenue for the quarter still would have exceeded the prior year’s actual revenue for each entity and no lost revenue would be reported. Cause: In preparing the Period 5 reports, management used preliminary estimates of revenue for the month of August 2021 in error. Review processes were performed before the reports were submitted, but these reviews did not detect and correct the errors before submission. Effect: The Medical Center’s Period 5 reporting in the PRF reporting portal included an inaccurate amount of actual revenue for the third quarter of calendar year 2021 for two reporting entities, which was not consistent with methodology described in the Option iii narrative submitted. The PRF reporting correctly reported no lost revenue for the quarter. Questioned costs: None. Repeat finding: Yes, the misreporting of actual revenues for the third quarter of 2021 for all of the Medical Center’s reporting entities was also included in finding 2022-001 in the prior year. This error was corrected in the Period 4 and/or Period 5 reports for the Medical Center’s reporting entities except for two reporting entities. Recommendation: We recommend that management’s review of the lost revenue calculations and reporting in the PRF reporting portal include review of documentation supporting each dollar amount included in lost revenue calculation. Views of responsible officials of the auditee: Management agrees with the finding and the auditor’s recommendation.
Federal program: U.S. Department of Health and Human Services—ALN 93.498, Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria: Specific criteria are established by the U.S. Department of Health and Human Services (HHS) with respect to allowable cost and reporting requirements for this program, including: -Funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. -Entities may elect to calculate and report lost revenue using one of three options. For entities electing to report lost revenues using Option iii, the alternative method used to calculate lost revenue should be consistent with a narrative description of the methodology as submitted in the PRF reporting portal. Condition: In the Medical Center’s Period 5 reporting in the PRF reporting portal, the Medical Center reported lost revenue using Option iii for each reporting entity included in the schedule of expenditures of federal awards that received PRF. The alternative method used to calculate lost revenues was budget-toactual revenues for the period from January 2020 through August 2020 and year-over-year actual revenues for the period from September 2020 through August 2021. In the lost revenue calculation for the third quarter of calendar year 2021 for two of the Medical Center’s reporting entities, the Medical Center understated actual revenues by $1,095,540 in total. Context: The Medical Center did not report lost revenues for the third quarter of 2021 for any entity, because actual revenue exceeded the prior year’s actual revenue for each entity. Had the correct amounts of actual revenue been reported for the third quarter of 2021, actual revenue for the quarter still would have exceeded the prior year’s actual revenue for each entity and no lost revenue would be reported. Cause: In preparing the Period 5 reports, management used preliminary estimates of revenue for the month of August 2021 in error. Review processes were performed before the reports were submitted, but these reviews did not detect and correct the errors before submission. Effect: The Medical Center’s Period 5 reporting in the PRF reporting portal included an inaccurate amount of actual revenue for the third quarter of calendar year 2021 for two reporting entities, which was not consistent with methodology described in the Option iii narrative submitted. The PRF reporting correctly reported no lost revenue for the quarter. Questioned costs: None. Repeat finding: Yes, the misreporting of actual revenues for the third quarter of 2021 for all of the Medical Center’s reporting entities was also included in finding 2022-001 in the prior year. This error was corrected in the Period 4 and/or Period 5 reports for the Medical Center’s reporting entities except for two reporting entities. Recommendation: We recommend that management’s review of the lost revenue calculations and reporting in the PRF reporting portal include review of documentation supporting each dollar amount included in lost revenue calculation. Views of responsible officials of the auditee: Management agrees with the finding and the auditor’s recommendation.
Federal program: U.S. Department of Health and Human Services—ALN 93.498, Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria: Specific criteria are established by the U.S. Department of Health and Human Services (HHS) with respect to allowable cost and reporting requirements for this program, including: -Funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. -Entities may elect to calculate and report lost revenue using one of three options. For entities electing to report lost revenues using Option iii, the alternative method used to calculate lost revenue should be consistent with a narrative description of the methodology as submitted in the PRF reporting portal. Condition: In the Medical Center’s Period 5 reporting in the PRF reporting portal, the Medical Center reported lost revenue using Option iii for each reporting entity included in the schedule of expenditures of federal awards that received PRF. The alternative method used to calculate lost revenues was budget-toactual revenues for the period from January 2020 through August 2020 and year-over-year actual revenues for the period from September 2020 through August 2021. In the lost revenue calculation for the third quarter of calendar year 2021 for two of the Medical Center’s reporting entities, the Medical Center understated actual revenues by $1,095,540 in total. Context: The Medical Center did not report lost revenues for the third quarter of 2021 for any entity, because actual revenue exceeded the prior year’s actual revenue for each entity. Had the correct amounts of actual revenue been reported for the third quarter of 2021, actual revenue for the quarter still would have exceeded the prior year’s actual revenue for each entity and no lost revenue would be reported. Cause: In preparing the Period 5 reports, management used preliminary estimates of revenue for the month of August 2021 in error. Review processes were performed before the reports were submitted, but these reviews did not detect and correct the errors before submission. Effect: The Medical Center’s Period 5 reporting in the PRF reporting portal included an inaccurate amount of actual revenue for the third quarter of calendar year 2021 for two reporting entities, which was not consistent with methodology described in the Option iii narrative submitted. The PRF reporting correctly reported no lost revenue for the quarter. Questioned costs: None. Repeat finding: Yes, the misreporting of actual revenues for the third quarter of 2021 for all of the Medical Center’s reporting entities was also included in finding 2022-001 in the prior year. This error was corrected in the Period 4 and/or Period 5 reports for the Medical Center’s reporting entities except for two reporting entities. Recommendation: We recommend that management’s review of the lost revenue calculations and reporting in the PRF reporting portal include review of documentation supporting each dollar amount included in lost revenue calculation. Views of responsible officials of the auditee: Management agrees with the finding and the auditor’s recommendation.
Federal program: U.S. Department of Health and Human Services—ALN 93.498, Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria: Specific criteria are established by the U.S. Department of Health and Human Services (HHS) with respect to allowable cost and reporting requirements for this program, including: -Funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: In the Medical Center’s Period 5 reporting in the PRF reporting portal, for one reporting entity, the Medical Center reported other PRF expenses of $855,130. These same expenses had previously been reported in this reporting entity's Period 2 PRF reporting and, therefore, should not have been reported again in Period 5. Context: The $855,130 of duplicate PRF expenses identified were the only PRF expenses reported in either Period 4 or Period 5 by any of the Medical Center’s reporting entities; therefore, the total amount of likely questioned costs is the same as the known questioned costs of $855,130. Cause: In preparing the Period 5 reports, management included in error PRF expenses that had previously been reported in Period 2. Review processes were performed before the reports were submitted, but these reviews did not detect and correct the error before submission. Effect: The Medical Center’s Period 5 reporting in the PRF reporting portal included questioned costs for one reporting entity. On that reporting entity’s submitted Period 5 report, total PRF expenses and lost revenues available to be used for Period 5 exceeded PRF payments received by $3,810,237. After correction of the error, total PRF expenses and lost revenues available to be used for Period 5 would still exceed PRF payments received by $2,955,107. Thus, federal expenditures reported for ALN 93.498 in the schedule of expenditures of federal awards for the year ended August 31, 2023, are unaffected by this error. Questioned costs: $855,130 of known and likely questioned costs for PRF expenses reported in Period 5. Repeat finding: No. Recommendation: We recommend that management’s review of the draft reporting in the PRF reporting portal include review of documentation supporting all reported PRF expenses for the period and a review and reconciliation of the PRF expenses previously reported in prior periods. Views of responsible officials of the auditee: Management agrees with the finding and the auditor’s recommendation.
Federal program: U.S. Department of Health and Human Services—ALN 93.498, Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria: Specific criteria are established by the U.S. Department of Health and Human Services (HHS) with respect to allowable cost and reporting requirements for this program, including: -Funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: In the Medical Center’s Period 5 reporting in the PRF reporting portal, for one reporting entity, the Medical Center reported other PRF expenses of $855,130. These same expenses had previously been reported in this reporting entity's Period 2 PRF reporting and, therefore, should not have been reported again in Period 5. Context: The $855,130 of duplicate PRF expenses identified were the only PRF expenses reported in either Period 4 or Period 5 by any of the Medical Center’s reporting entities; therefore, the total amount of likely questioned costs is the same as the known questioned costs of $855,130. Cause: In preparing the Period 5 reports, management included in error PRF expenses that had previously been reported in Period 2. Review processes were performed before the reports were submitted, but these reviews did not detect and correct the error before submission. Effect: The Medical Center’s Period 5 reporting in the PRF reporting portal included questioned costs for one reporting entity. On that reporting entity’s submitted Period 5 report, total PRF expenses and lost revenues available to be used for Period 5 exceeded PRF payments received by $3,810,237. After correction of the error, total PRF expenses and lost revenues available to be used for Period 5 would still exceed PRF payments received by $2,955,107. Thus, federal expenditures reported for ALN 93.498 in the schedule of expenditures of federal awards for the year ended August 31, 2023, are unaffected by this error. Questioned costs: $855,130 of known and likely questioned costs for PRF expenses reported in Period 5. Repeat finding: No. Recommendation: We recommend that management’s review of the draft reporting in the PRF reporting portal include review of documentation supporting all reported PRF expenses for the period and a review and reconciliation of the PRF expenses previously reported in prior periods. Views of responsible officials of the auditee: Management agrees with the finding and the auditor’s recommendation.
Federal program: U.S. Department of Health and Human Services—ALN 93.498, Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria: Specific criteria are established by the U.S. Department of Health and Human Services (HHS) with respect to allowable cost and reporting requirements for this program, including: -Funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: In the Medical Center’s Period 5 reporting in the PRF reporting portal, for one reporting entity, the Medical Center reported other PRF expenses of $855,130. These same expenses had previously been reported in this reporting entity's Period 2 PRF reporting and, therefore, should not have been reported again in Period 5. Context: The $855,130 of duplicate PRF expenses identified were the only PRF expenses reported in either Period 4 or Period 5 by any of the Medical Center’s reporting entities; therefore, the total amount of likely questioned costs is the same as the known questioned costs of $855,130. Cause: In preparing the Period 5 reports, management included in error PRF expenses that had previously been reported in Period 2. Review processes were performed before the reports were submitted, but these reviews did not detect and correct the error before submission. Effect: The Medical Center’s Period 5 reporting in the PRF reporting portal included questioned costs for one reporting entity. On that reporting entity’s submitted Period 5 report, total PRF expenses and lost revenues available to be used for Period 5 exceeded PRF payments received by $3,810,237. After correction of the error, total PRF expenses and lost revenues available to be used for Period 5 would still exceed PRF payments received by $2,955,107. Thus, federal expenditures reported for ALN 93.498 in the schedule of expenditures of federal awards for the year ended August 31, 2023, are unaffected by this error. Questioned costs: $855,130 of known and likely questioned costs for PRF expenses reported in Period 5. Repeat finding: No. Recommendation: We recommend that management’s review of the draft reporting in the PRF reporting portal include review of documentation supporting all reported PRF expenses for the period and a review and reconciliation of the PRF expenses previously reported in prior periods. Views of responsible officials of the auditee: Management agrees with the finding and the auditor’s recommendation.
Federal program: U.S. Department of Health and Human Services—ALN 93.498, Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria: Specific criteria are established by the U.S. Department of Health and Human Services (HHS) with respect to allowable cost and reporting requirements for this program, including: -Funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: In the Medical Center’s Period 5 reporting in the PRF reporting portal, for one reporting entity, the Medical Center reported other PRF expenses of $855,130. These same expenses had previously been reported in this reporting entity's Period 2 PRF reporting and, therefore, should not have been reported again in Period 5. Context: The $855,130 of duplicate PRF expenses identified were the only PRF expenses reported in either Period 4 or Period 5 by any of the Medical Center’s reporting entities; therefore, the total amount of likely questioned costs is the same as the known questioned costs of $855,130. Cause: In preparing the Period 5 reports, management included in error PRF expenses that had previously been reported in Period 2. Review processes were performed before the reports were submitted, but these reviews did not detect and correct the error before submission. Effect: The Medical Center’s Period 5 reporting in the PRF reporting portal included questioned costs for one reporting entity. On that reporting entity’s submitted Period 5 report, total PRF expenses and lost revenues available to be used for Period 5 exceeded PRF payments received by $3,810,237. After correction of the error, total PRF expenses and lost revenues available to be used for Period 5 would still exceed PRF payments received by $2,955,107. Thus, federal expenditures reported for ALN 93.498 in the schedule of expenditures of federal awards for the year ended August 31, 2023, are unaffected by this error. Questioned costs: $855,130 of known and likely questioned costs for PRF expenses reported in Period 5. Repeat finding: No. Recommendation: We recommend that management’s review of the draft reporting in the PRF reporting portal include review of documentation supporting all reported PRF expenses for the period and a review and reconciliation of the PRF expenses previously reported in prior periods. Views of responsible officials of the auditee: Management agrees with the finding and the auditor’s recommendation.
Federal program: U.S. Department of Health and Human Services—ALN 93.498, Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria: Specific criteria are established by the U.S. Department of Health and Human Services (HHS) with respect to allowable cost and reporting requirements for this program, including: -Funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: In the Medical Center’s Period 5 reporting in the PRF reporting portal, for one reporting entity, the Medical Center reported other PRF expenses of $855,130. These same expenses had previously been reported in this reporting entity's Period 2 PRF reporting and, therefore, should not have been reported again in Period 5. Context: The $855,130 of duplicate PRF expenses identified were the only PRF expenses reported in either Period 4 or Period 5 by any of the Medical Center’s reporting entities; therefore, the total amount of likely questioned costs is the same as the known questioned costs of $855,130. Cause: In preparing the Period 5 reports, management included in error PRF expenses that had previously been reported in Period 2. Review processes were performed before the reports were submitted, but these reviews did not detect and correct the error before submission. Effect: The Medical Center’s Period 5 reporting in the PRF reporting portal included questioned costs for one reporting entity. On that reporting entity’s submitted Period 5 report, total PRF expenses and lost revenues available to be used for Period 5 exceeded PRF payments received by $3,810,237. After correction of the error, total PRF expenses and lost revenues available to be used for Period 5 would still exceed PRF payments received by $2,955,107. Thus, federal expenditures reported for ALN 93.498 in the schedule of expenditures of federal awards for the year ended August 31, 2023, are unaffected by this error. Questioned costs: $855,130 of known and likely questioned costs for PRF expenses reported in Period 5. Repeat finding: No. Recommendation: We recommend that management’s review of the draft reporting in the PRF reporting portal include review of documentation supporting all reported PRF expenses for the period and a review and reconciliation of the PRF expenses previously reported in prior periods. Views of responsible officials of the auditee: Management agrees with the finding and the auditor’s recommendation.
Federal program: U.S. Department of the Treasury; Passed-through Illinois Department of Public Health-ALN 21.027, COVID-19 Coronavirus State and Local Fiscal Recovery Funds. Criteria: In accordance with 2 CFR 200 200.510(b), the auditee must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements which must include the total federal awards expended as determined in accordance with 2 CFR 200.502. Condition: The Medical Center's SEFA for the year ended August 31, 2023, which is supplementary information to the Medical Center's financial statements, was restated to include an additional $2,000,000 of federal expenditures for the Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing Number 21.027. Management's processes and internal controls for ensuring that all federal funds expended by the Medical Center are captured and reported in the SEFA were inadquate to detect the omission of the $2,000,000 of federal expenditures. Context: The additional $2,000,000 of federal expenditures increased the total federal expenditures for the Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing Number 21.027 to $2,899,890. This resulted in the reissuance of the single audit report. Cause: The additional federal program expenditures for the Coronavirus State and Local Fiscal Recovery Funds, Assistance Listing Number 21.027, were provided under a separate pass-through grant and were inadvertently omitted from the SEFA due to an oversight in the preparation of the SEFA resulting in part from and coinciding with the turnover of key personnel involved with and having oversight over the $2,000,000 award. Effect: Improper reporting of federal expenditures can result in material errors on the SEFA leading to inaccurate major program determination. In this instance an error did result in the identification of an additional major program. Repeat finding: No. Recommendation: We recommend that management enhance its process and internal controls around the timely identification of federal awards and preparation of the SEFA to ensure completeness and accuracy of the SEFA. Views of responsible officials of the auditee: Management agrees with the finding and the auditor's recommendation.
Federal Program: U.S. Department of the Treasury-ALN 21.027, Coronavirus State and Local Fiscal Recovery Funds. Questioned costs: None. See item 2023-004.