Audit 36424

FY End
2022-12-31
Total Expended
$100.10M
Findings
2
Programs
59
Organization: Henry Ford Health System (MI)
Year: 2022 Accepted: 2023-09-29

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
36030 2022-001 - - P
612472 2022-001 - - P

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $25.19M Yes 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $16.98M - 0
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $10.10M Yes 1
93.103 Food and Drug Administration_research $838,877 Yes 0
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $537,964 - 0
93.778 Medical Assistance Program $438,563 - 0
93.461 Hrsa Covid-19 Claims Reimbursement for the Uninsured Program and the Covid-19 Coverage Assistance Fund $366,997 - 0
93.113 Environmental Health $363,810 Yes 0
93.073 Birth Defects and Developmental Disabilities - Prevention and Surveillance $324,278 Yes 0
93.353 21st Century Cures Act - Beau Biden Cancer Moonshot $223,372 Yes 0
93.233 National Center on Sleep Disorders Research $202,811 Yes 0
93.136 Injury Prevention and Control Research and State and Community Based Programs $199,947 - 0
93.859 Biomedical Research and Research Training $168,343 Yes 0
93.395 Cancer Treatment Research $151,044 Yes 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $142,892 - 0
93.279 Drug Abuse and Addiction Research Programs $137,240 Yes 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $134,380 - 0
93.914 Hiv Emergency Relief Project Grants $128,434 - 0
93.866 Aging Research $100,503 Yes 0
93.318 Protecting and Improving Health Globally: Building and Strengthening Public Health Impact, Systems, Capacity and Security $81,842 - 0
93.846 Arthritis, Musculoskeletal and Skin Diseases Research $60,672 Yes 0
43.003 Exploration $60,657 Yes 0
93.242 Mental Health Research Grants $56,679 Yes 0
93.917 Hiv Care Formula Grants $47,857 - 0
93.393 Cancer Cause and Prevention Research $46,213 Yes 0
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $43,861 Yes 0
93.840 Translation and Implementation Science Research for Heart, Lung, Blood Diseases, and Sleep Disorders $40,377 Yes 0
12.420 Military Medical Research and Development $40,100 Yes 0
93.940 Hiv Prevention Activities_health Department Based $39,700 - 0
93.172 Human Genome Research $35,523 Yes 0
93.092 Affordable Care Act (aca) Personal Responsibility Education Program $28,366 - 0
93.865 Child Health and Human Development Extramural Research $26,086 Yes 0
93.855 Allergy, Immunology and Transplantation Research $19,420 Yes 0
93.GSA_MIGRATION Federal Contracts in Cancer Research $19,051 Yes 0
93.867 Vision Research $17,352 Yes 0
93.310 Trans-Nih Research Support $16,461 Yes 0
15.662 Great Lakes Restoration $15,575 - 0
93.143 Niehs Superfund Hazardous Substances_basic Research and Education $14,829 Yes 0
93.273 Alcohol Research Programs $14,771 Yes 0
93.396 Cancer Biology Research $11,953 Yes 0
93.307 Minority Health and Health Disparities Research $10,614 Yes 0
93.853 Extramural Research Programs in the Neurosciences and Neurological Disorders $10,426 Yes 0
93.110 Maternal and Child Health Federal Consolidated Programs $10,186 - 0
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $7,947 - 0
93.226 Research on Healthcare Costs, Quality and Outcomes $7,591 Yes 0
93.380 The Cdc Public Health Cancer Genomics Program: Translating Research Into Public Health Practice (b) $7,205 - 0
93.185 Immunization Research, Demonstration, Public Information and Education_training and Clinical Skills Improvement Projects $6,939 Yes 0
93.080 Blood Disorder Program: Prevention, Surveillance, and Research $6,373 - 0
93.GSA_MIGRATION Department of Veteran Affairs $6,293 Yes 0
93.003 Public Health and Social Services Emergency Fund $4,764 - 0
93.838 Lung Diseases Research $3,248 Yes 0
93.701 Trans-Nih Recovery Act Research Support $1,713 Yes 0
93.493 Congressional Directives $828 - 0
93.394 Cancer Detection and Diagnosis Research $468 Yes 0
93.837 Cardiovascular Diseases Research $360 Yes 0
21.019 Coronavirus Relief Fund $192 - 0
93.994 Maternal and Child Health Services Block Grant to the States $-40 - 0
93.213 Research and Training in Complementary and Integrative Health $-78 Yes 0
93.839 Blood Diseases and Resources Research $-5,938 Yes 0

Contacts

Name Title Type
R9NXPE2GTCN9 Doug Clark Auditee
2486413100 Bradley Mutnick Auditor
No contacts on file

Notes to SEFA

Title: DONATED PERSONAL PROTECTIVE EQUIPMENT (UNAUDITED) Accounting Policies: BASIS OF ACCOUNTINGThe schedule of expenditures of federal awards is presented on the same basis of accounting used for presentation of Henry Ford Health System and its subsidiaries and affiliates (collectively, Henry Ford Health) basic consolidated financial statements, which is in accordance with accounting principles generally accepted in the United States of America.The schedule of expenditures of federal awards 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), and includes all Henry Ford Healths expenditures charged to federal programs. The schedule summarizes expenditures by:?Primary federal funding agency?Programs as defined by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)?Direct award agreements with federal granting agenciesThe schedule of expenditures of federal awards includes negative amounts, which represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Both Rate Explanation: PROGRAMSHenry Ford Healths programs are primarily research and development and Coronavirus State and Local Fiscal Recovery Funds.Research and development programs include those awards that are for basic and applied research and development activities. Title 2 U.S. Code of Federal Regulations Part 200 defines research and development as follows: research is a systematic study directed toward fuller scientific knowledge or understanding of the subject studied; and development is the systematic use of knowledge and understanding gained from research directed toward the production of useful materials, devices, systems, or methods, including design and development of prototypes and processes.Indirect CostsHenry Ford Health uses indirect cost rates when determining federal awards expended for research, as approved by the United States Department of Health and Human Services. For other federal awards, to the extent indirect costs are allowable, Henry Ford Health elects to use the de minimis indirect cost rate allowed under the Uniform Guidance. For the year ended December 31, 2022, the fair value of donated personal protective equipment received by Henry Ford Health was $0 and was not included in the consolidated schedule of expenditures of federal awards.
Title: Provider Relief Funds Accounting Policies: BASIS OF ACCOUNTINGThe schedule of expenditures of federal awards is presented on the same basis of accounting used for presentation of Henry Ford Health System and its subsidiaries and affiliates (collectively, Henry Ford Health) basic consolidated financial statements, which is in accordance with accounting principles generally accepted in the United States of America.The schedule of expenditures of federal awards 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), and includes all Henry Ford Healths expenditures charged to federal programs. The schedule summarizes expenditures by:?Primary federal funding agency?Programs as defined by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance)?Direct award agreements with federal granting agenciesThe schedule of expenditures of federal awards includes negative amounts, which represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: Both Rate Explanation: PROGRAMSHenry Ford Healths programs are primarily research and development and Coronavirus State and Local Fiscal Recovery Funds.Research and development programs include those awards that are for basic and applied research and development activities. Title 2 U.S. Code of Federal Regulations Part 200 defines research and development as follows: research is a systematic study directed toward fuller scientific knowledge or understanding of the subject studied; and development is the systematic use of knowledge and understanding gained from research directed toward the production of useful materials, devices, systems, or methods, including design and development of prototypes and processes.Indirect CostsHenry Ford Health uses indirect cost rates when determining federal awards expended for research, as approved by the United States Department of Health and Human Services. For other federal awards, to the extent indirect costs are allowable, Henry Ford Health elects to use the de minimis indirect cost rate allowed under the Uniform Guidance. The Provider Relief Funds included in the consolidated schedule of expenditures of federal awards were received by the following entities (legal name and tax identification number): Henry Ford Health System 38-1357020, Henry Ford Pathology 41-2223561, Henry Ford Macomb Hospital 38-2947657, W.A. Foote Memorial Hospital d/b/a Henry Ford Allegiance Health 38-2027689, Henry Ford Allegiance Hospice 38-2336367, and Henry Ford Wyandotte Hospital 38-2791823

Finding Details

Finding Reference Number 2022-001 Federal Award Name: ALN 93.498 - COVID-19 Provider Relief Fund and ARP Rural Distribution Federal Award Agency: Department of Health and Human Services Criteria - Upon receiving direct PRF and ARP Rural Funding distributed by Health Resources and Services Administration (HRSA), recipients of these funds agreed to terms and conditions which require compliance with reporting requirements, which includes the accurate reporting of lost revenue, if applicable. Condition ? Recent agency oversight directed by HRSA revealed a finding related to the method used to calculate lost revenues. The report indicated that the relevant reporting entities receiving these funds need to recalculate their lost revenues on a quarterly basis, ensuring they net all months in the quarter, including those months that did not have lost revenue. Cause ? For PRF Periods 1 through 4, Henry Ford Health calculated lost revenue available for reimbursement on a monthly basis while excluding months that did not have any lost revenue when reporting through the HRSA portal on a quarterly basis, resulting in an overstatement of lost revenue available for reimbursement. Effect ? The initial method used to calculate lost revenue available for reimbursement resulted in a $39,458,554 overstatement of Henry Ford Health?s lost revenue available for reimbursement across all associated entities that received PRF awards. HRSA directed Henry Ford Health to restate the historically reported lost revenue amounts available for reimbursement when submitting for PRF Period 5. This did not result in any questioned costs, as Henry Ford Health had sufficient lost revenue to cover the PRF payments received for Period 1 through Period 4. Questioned Costs ? None Repeat Finding from Prior Year ? No Recommendation ? Management should develop corrective action to ensure that future PRF lost revenue reported is accurately calculated and reported in accordance with PRF terms and conditions and reporting requirements. View of Responsible Officials ? See attached corrective action plan Contact Person ? Paul Kolpasky, VP and Corporate Controller Summary Schedule of Prior-Year Audit Findings for the Year Ended December 31, 2021 No matters are reportable.
Finding Reference Number 2022-001 Federal Award Name: ALN 93.498 - COVID-19 Provider Relief Fund and ARP Rural Distribution Federal Award Agency: Department of Health and Human Services Criteria - Upon receiving direct PRF and ARP Rural Funding distributed by Health Resources and Services Administration (HRSA), recipients of these funds agreed to terms and conditions which require compliance with reporting requirements, which includes the accurate reporting of lost revenue, if applicable. Condition ? Recent agency oversight directed by HRSA revealed a finding related to the method used to calculate lost revenues. The report indicated that the relevant reporting entities receiving these funds need to recalculate their lost revenues on a quarterly basis, ensuring they net all months in the quarter, including those months that did not have lost revenue. Cause ? For PRF Periods 1 through 4, Henry Ford Health calculated lost revenue available for reimbursement on a monthly basis while excluding months that did not have any lost revenue when reporting through the HRSA portal on a quarterly basis, resulting in an overstatement of lost revenue available for reimbursement. Effect ? The initial method used to calculate lost revenue available for reimbursement resulted in a $39,458,554 overstatement of Henry Ford Health?s lost revenue available for reimbursement across all associated entities that received PRF awards. HRSA directed Henry Ford Health to restate the historically reported lost revenue amounts available for reimbursement when submitting for PRF Period 5. This did not result in any questioned costs, as Henry Ford Health had sufficient lost revenue to cover the PRF payments received for Period 1 through Period 4. Questioned Costs ? None Repeat Finding from Prior Year ? No Recommendation ? Management should develop corrective action to ensure that future PRF lost revenue reported is accurately calculated and reported in accordance with PRF terms and conditions and reporting requirements. View of Responsible Officials ? See attached corrective action plan Contact Person ? Paul Kolpasky, VP and Corporate Controller Summary Schedule of Prior-Year Audit Findings for the Year Ended December 31, 2021 No matters are reportable.