FAC Explorer

Audit 399667

FY End
2025-06-30
Total Expended
$2.07M
Findings
1
Programs
8
Organization: Froedtert Health, Inc. and Affiliates (WI)
Year: 2025 Accepted: 2026-04-24
Auditor: KPMG LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1208805 2025-001 Material Weakness Yes BN

Programs

ALN Program Spent Major Findings
93.399 CANCER CONTROL $743,332 Yes 1
93.493 CONGRESSIONAL DIRECTIVES $429,013 Yes 0
93.083 PREVENTION OF DISEASE, DISABILITY, AND DEATH THROUGH IMMUNIZATION AND CONTROL OF RESPIRATORY AND RELATED DISEASES $182,544 Yes 0
93.912 RURAL HEALTHCARE SERVICES PROGRAMS $174,501 Yes 0
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $71,315 Yes 0
93.301 SMALL RURAL HOSPITAL IMPROVEMENT GRANT PROGRAM $64,300 Yes 0
93.241 STATE RURAL HOSPITAL FLEXIBILITY PROGRAM $59,665 Yes 0
93.426 THE NATIONAL CARDIOVASCULAR HEALTH PROGRAM $5,019 Yes 0

Contacts

Name Title Type
KYSEBY3LV4G9 David Dirksmeyer Auditee
4148525548 Charles Klescewski Auditor
No contacts on file

Notes to SEFA

The schedule of expenditures of federal awards and the schedule of expenditures of state awards (the Schedules) includes all grants, contracts and similar agreements, loans, and loan guarantee agreements entered into directly between Froedtert Theda Care Health, Inc. and Affiliates (FTCH) and agencies and departments of the federal government and state government, respectively, as well as awards from pass-through entities, and should be read in conjunction with the FTCH’s consolidated financial statements. For the year ended June 30, 2025, FTCH had no expenditures in the form of noncash assistance, no federally or state provided insurance in effect during the year, and no loans or loan guarantees outstanding. The accompanying Schedules are prepared on the accrual basis of accounting. Expenditures consist of direct and indirect costs. Direct costs are those that can be easily identified with an individual federally sponsored project; whereas, indirect costs cannot be easily identified with an individual sponsored project. Indirect costs are the costs of services and resources that benefit many sponsored projects as well as non-sponsored projects and activities. The information in these Schedules 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 the Wisconsin State Single Audit Guidelines - Department of Health Services Appendix. FTCH and federal agencies use an indirect cost rate to charge indirect costs to individual sponsored projects. In 2025, FTCH applied thier approved rate, except where the rate was capped under the respective award agreement.
Grant Entity Name EIN HRSA -Rural Health Care Services Outreach Program ThedaCare Medical Center – Waupaca, Inc. 39-0871113 HRSA - Community Project Funding/Congressionally Directed Spending - Construction ThedaCare Medical Center - Neenah 39-0830664 NIH - New Cohorts for Environmental Exposures and Cancer Risks ThedaCare, Inc. 39-1509362 HRSA - WORE - I - Rural Hospital Flexibility Program ThedaCare Medical Center, Inc. - Waupaca, Inc. 39-0871113 HRSA - WORE - I - Rural Hospital Flexibility Program ThedaCare, Inc. 39-1509362 HRSA - WORE - I - Rural Hospital Flexibility Program ThedaCare Medical Center, Inc. - Wild Rose, Inc. 39-6089134 HRSA - WORE - I - Rural Hospital Flexibility Program ThedaCare Medical Center, Inc. - Waupaca, Inc. 39-0871113 HRSA - WORE - I - Small Rural Hospital Program (SHIP) ThedaCare Medical Center, Inc. - Wild Rose, Inc. 39-6089134 HRSA - WORE - I - Small Rural Hospital Program (SHIP) ThedaCare Medical Center, Inc. - Shawano, Inc. 39-0807068 HRSA - WORE - I - Small Rural Hospital Program (SHIP) ThedaCare Medical Center, Inc. - New London, Inc. 39-0869788 HRSA - WORE - I - Small Rural Hospital Program (SHIP) ThedaCare Medical Center, Inc. - Berlin, Inc. 39-0806359 HRSA - WORE - I - Small Rural Hospital Program (SHIP) ThedaCare Medical Center, Inc. - Waupaca, Inc. 39-0871113 COVID-19 - American Rescue Plan Act - WI DHS - UWSMPH - Health Wisconsin Families Froedtert Memorial Lutheran Hospital, Inc. 39-6105970 COVID-19 - American Rescue Plan Act WI DHS - MCH Equity Froedtert Hospital Foundation, Inc. 39-1431192 CDC - WI DHS - Chronic Disease Prevention Program Froedtert ThedaCare Health, Inc. 39-2014409 CDC - WI DHS - Prevention of Disease, Disability and Death through Immunization and Control of Repiratory and Related Diseases Froedtert & The Medical College of Wisconsin Community Physicians 27-2042610 WI DHS - GME Program Development ThedaCare, Inc. 39-1509362

Finding Details

Finding 2025-001
(3) Findings and Questions Costs Relating to Federal Awards Finding 2025-001 Federal Program Title - Cancer Control Assitance Listing No. - 93.399 Federal Agency - Department of Health and Human Services - Passed through Marshfield Clinic Federal Award Identification - JHKBV97FZUC5 Grant Award Period - July 1, 2024 through June 30, 2025 Compliance Requirement - Allowable costs/Cost principles, Special Tests and Provisions Criteria: Section 2 CFR section 200.430(d)(2) states allowable compensation for certain employees is subject to a ceiling in accordance with Federal statute. Per NIH Grants Policy Statement, direct salaries of individuals in exces of the rate prescribed in the governing Appropriation Act for NHI will be adjusted in accordance with the legislative salary limitation. Condition found: During our testing of employee compensation of 25 employees, we identified 6 employees compensation exceeded the NIH salary cap provisions as follows: Salaries $161,894 - Fringe benefits $45,330 - Indirect costs $20,723 - Total $227,947 Further, we noted FTCH did not have adequately effective controls in place to ensure FTCH complies with the NIH salary cap provisions. Cause: In discussing these conditions FTCH management stated that based on documentation received as a passthrough entity, they were unaware of the NIH salary cap being applicable. As a result, a control related to the application of the NHI salary cap provisions was not put in place and therefore not operating effectively. Possible Asserted Effect: Failure to adhere to NIH salary cap provisions resulted in unallowable costs being applied to the grant, including salary and associated fringe benefits and indirect costs. Questioned Costs: $227,947 Repeat Finding: A similar finding was not reported in the prior year's audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: We recommend FTCH strengthen processes and develop internal controls to ensure FTCH is appropriately monitoring and aplying NHI salary caps. View of Responsible Official: The Organization concurs with this finding. We acknowledge that salary cap limitations were not applied correctly during the period under review and have implemented enhanced controls to prevent recurrence. These corrective actions include strengthened review procedures, augmented pre-submission compliance checks, and targeted traning for staff involved in grants and financial administration. These measurs will be fully in place by May 31, 2026 to ensure consistent and accurate application of NIH salary cap requirements gong forward. The Organization remains committed to strong financial stewardship and full compliance with all applicable Federal regulations and award terms.