Audit 414852

FY End
2024-06-30
Total Expended
$9.21M
Findings
2
Programs
16
Organization: Wellspan Health (PA)
Year: 2024 Accepted: 2026-10-13
Auditor: KPMG LLP

Organization Exclusion Status:

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Contacts

Name Title Type
GHUMTNSYMNH3 David Rizzuto Auditee
7178513095 Johnny Lewis Auditor
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Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes all federal grants to WellSpan Health (the Company) that had expenditure activity during fiscal year 2024. The Schedule has been prepared in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance), and on the accrual basis of accounting. In accordance with applicable requirements, certain programs may be presented in a fiscal period based on the program-specific guidance (see Note 2). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements of the Company. For purposes of the Schedule, federal awards include any assistance provided by a federal agency either directly or indirectly in the form of grants, contracts, cooperative agreements, direct appropriations, loan and loan guarantees, and other noncash assistance. During the year ended June 30, 2024, the Organization did not pass through federal awards to subrecipients. Accordingly, no amounts have been presented as subrecipient expenditures on the Schedule of Expenditures of Federal Awards. Direct and indirect costs are charged to awards in accordance with cost principles contained in the United States Department of Health and Human Services Cost Principles for Hospitals at 45 CFR Part 75 Appendix IX for awards subject to the Uniform Guidance. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. The Uniform Guidance provides for a 10% de minimis indirect cost rate election. The Company has elected to use the 10% de minimis indirect cost rate as covered in Uniform Guidance section 2 CFR 200.414 Indirect (F&A) costs.
The Company received a disaster grant awards in 2024 related to COVID-19. Expenditures included in the Schedule for Disaster Grants – Public Assistance (Presidentially Declared Disasters) (ALN 97.036) of $6.0 million relate to the recovery of expenses incurred by the Company prior to the year ended June 30,2024.
The following table details grant expenditures recognized, grant receipts, and receivables for grants received from the Department of Health and Human Services and passed through the Pennsylvania Department of Health for the year ended June 30, 2024: Assistance Listing Number 93.994: Contract number 4100088125: Accrued grants receivable at July 1, 2023 $ 20,308 Less total federal funding received during the year ended June 30, 2024 (68,345) Plus federal expenditures recognized during the year ended June 30, 2024 78,334 Accrued grants receivable at June 30, 2024 $ 30,297
The Schedule has been restated to include expenditures of $4,852,462 for the Disaster Grants - Public Assistance (Presidentially Declared Disasters) (AL #97.036). These expenditures were inadvertently omitted from the Schedule.

Finding Details

The Company omitted $4,852,462 of federal expenditures on the SEFA for the year ended June 30, 2024. The expenditures relate to three different projects within Disaster Grants - Public Assistance (Presidentially Declared Disasters) program. Through inspection of documentation supporting the obligation date of the three projects, it was identified that the obligation date occurred during the Company’s fiscal year ended June 30, 2024.
The Company experienced de-obligations of previously awarded FEMA funding totaling $1,736,959 related to two projects under the Disaster Grants – Public Assistance (Presidentially Declared Disasters) Program (ALN 97.036). The de-obligations resulted from duplication of benefits (DoB) determinations identified during reviews performed by the Homeland Security Operational Analysis Center (HSOAC), operated by the RAND Corporation and acting on behalf of the U.S. Department of Homeland Security and FEMA. The Company performed its duplication of benefit analysis using its fiscal year-end 2019 financial results (July 1, 2018 through June 30, 2019) as the baseline period. FEMA, utilizing HSOAC's standard methodology described in Methods of Assessing Duplication of Benefits with Patient Care Revenue, As Applied by the Federal Emergency Management Agency to Health Care Providers' Public Assistance Claims During the COVID-19 Emergency (December 18, 2024), required the use of calendar year 2019 financial results as the baseline period. Application of FEMA's standard methodology resulted in the determination that previously awarded funding represented a duplication of benefits and led to the de-obligation of grant funding.