Audit 38291

FY End
2022-12-31
Total Expended
$56.27M
Findings
4
Programs
4
Organization: Wheeling Hospital, Inc. (WV)
Year: 2022 Accepted: 2023-09-28
Auditor: Forvis LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
41938 2022-001 Significant Deficiency - L
41939 2022-002 Material Weakness - N
618380 2022-001 Significant Deficiency - L
618381 2022-002 Material Weakness - N

Programs

ALN Program Spent Major Findings
14.128 Mortgage Insurance_hospitals $43.58M Yes 2
93.498 Provider Relief Fund $12.34M Yes 0
93.461 Covid-19 Testing for the Uninsured $300,057 - 0
93.110 Maternal and Child Health Federal Consolidated Programs $51,682 - 0

Contacts

Name Title Type
W7LCHK9CRQ77 William Bane Auditee
3042433801 Sabrina Preston Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures arenot allowable or are limited as to reimbursement.The System has elected not to use the 10-percent de minimis indirect cost rate as allowed under the UniformGuidance.The System did not pass through any funding to subrecipients. 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 activityof Wheeling Hospital, Inc. and Subsidiaries (the System) under the programs of the federal governments for theyear ended December 31, 2022. The information in this Schedule is presented in accordance with the requirementsof Title 2 US Code of Federal Regulations Part 200, Uniform Administration Requirements, Cost Principles, andAudit Requirements for Federal Awards (Uniform Guidance). All federal awards received directly and indirectly fromfederal agencies are included in this Schedule. Because the Schedule presents only a selected portion of theoperations of the System, it is not intended to and does not present the financial position, changes in net assets orcash flows of the System. The amount reported for loans was the beginning of the year balance. The balance atthe end of the year for the Mortgage Insurance Hospitals loan was approximately $42,556,000.As outlined in the May 2023 OMB Compliance Supplement, the amounts reported in the accompanying schedulerelated to the Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution, Assistance ListingNo. 93.498, are reported based upon the PRF reporting portal submission guidelines established by the HealthResource and Service Administration (HRSA). Six separate reporting periods were established by HRSA basedon the dates of receipt of PRF payments.Each reporting period has a specific period of availability which begins on January 1, 2020 and extends throughspecified deadlines, as indicated below:The accompanying schedule includes those qualifying expenditures and lost revenues that were reported in theHRSA PRF portal for Period 3 and Period 4. During the year end September 30, 2020, the System recognizedapproximately $3,644,000. During the fifteen-month period ended December 31, 2021, the System recognizedapproximately $8,695,000 of additional revenues.
Title: Contingencies Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures arenot allowable or are limited as to reimbursement.The System has elected not to use the 10-percent de minimis indirect cost rate as allowed under the UniformGuidance.The System did not pass through any funding to subrecipients. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The grant programs are subject to financial and compliance audits by the grantors or their representatives. Such audits could lead to requests for reimbursement to the grantor agencies for expenditures disallowed under terms of the grants. Management believes disallowances, if any, will not be material.
Title: Categorization of Expenditures and Other Matters Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures arerecognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures arenot allowable or are limited as to reimbursement.The System has elected not to use the 10-percent de minimis indirect cost rate as allowed under the UniformGuidance.The System did not pass through any funding to subrecipients. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The categorization of expenditures by program included in the schedule of expenditures of federal awards is based upon the grant documents. Changes in the categorization of expenditures occur based upon revisions to the Assistance Listing, which is issued in June and December of each year. The schedule of expenditures of federal awards for the year ended December 31, 2022 reflects Assistance Listing changes through April 2022.

Finding Details

Criteria: The Uniform Guidance requires appropriate internal controls over compliance for each direct and material compliance requirement. Proper controls over the submission timing of the quarterly consolidated financial statements ensure that the submissions are completed and submitted timely. Condition: The System did not have a control process established to ensure quarterly reports were completed and submitted timely. Effect: The System submitted quarterly reports after the required due date to HUD. Questioned Costs: None. Cause: Lack of effectively designed and implemented controls around the completion and timely submission of the quarterly reports. Recommendation: Management should establish effective controls over compliance and reporting to ensure the quarterly reports are completed and submitted timely. Management Response: See corrective action plan.
Criteria: The Uniform Guidance requires appropriate internal controls over compliance for each direct and material compliance requirement. Proper controls should be established to ensure written consent from HUD prior to incurring new debt or lease arrangements is obtained. Condition: The System did not have a control process established to ensure written consent was obtained. Effect: The System did not maintain written consent from HUD prior to obtaining new debt or lease arrangements. Questioned Costs: None. Cause: Lack of effectively designed and implemented controls around obtaining written consent from HUD regarding new debt or lease arrangements. Recommendation: Management should establish effective controls over compliance to ensure the written consent is obtained prior to incurring new debt or lease arrangements. Management Response: See corrective action plan.
Criteria: The Uniform Guidance requires appropriate internal controls over compliance for each direct and material compliance requirement. Proper controls over the submission timing of the quarterly consolidated financial statements ensure that the submissions are completed and submitted timely. Condition: The System did not have a control process established to ensure quarterly reports were completed and submitted timely. Effect: The System submitted quarterly reports after the required due date to HUD. Questioned Costs: None. Cause: Lack of effectively designed and implemented controls around the completion and timely submission of the quarterly reports. Recommendation: Management should establish effective controls over compliance and reporting to ensure the quarterly reports are completed and submitted timely. Management Response: See corrective action plan.
Criteria: The Uniform Guidance requires appropriate internal controls over compliance for each direct and material compliance requirement. Proper controls should be established to ensure written consent from HUD prior to incurring new debt or lease arrangements is obtained. Condition: The System did not have a control process established to ensure written consent was obtained. Effect: The System did not maintain written consent from HUD prior to obtaining new debt or lease arrangements. Questioned Costs: None. Cause: Lack of effectively designed and implemented controls around obtaining written consent from HUD regarding new debt or lease arrangements. Recommendation: Management should establish effective controls over compliance to ensure the written consent is obtained prior to incurring new debt or lease arrangements. Management Response: See corrective action plan.