FAC Explorer

Audit 42465

FY End
2022-12-31
Total Expended
$9.51M
Findings
2
Programs
8
Organization: Finger Lakes Regional Health System Inc. Dba Finger Lakes Health (NY)
Year: 2022 Accepted: 2023-09-27
Auditor: Bonadio & CO LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
49856 2022-001 - - I
626298 2022-001 - - I

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $6.90M Yes 0
84.268 Federal Direct Student Loans $690,338 - 0
84.425 Education Stabilization Fund $628,290 Yes 1
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $426,207 - 0
93.155 Rural Health Research Centers $258,376 - 0
84.063 Federal Pell Grant Program $178,751 - 0
93.301 Small Rural Hospital Improvement Grant Program $100,516 - 0
84.007 Federal Supplemental Educational Opportunity Grants $7,500 - 0

Contacts

Name Title Type
KSDFFG66ZVM9 Trisha Koczent Auditee
3157974030 Aimee Jozic Auditor
No contacts on file

Notes to SEFA

Title: General Accounting Policies: Expenditures reported on the Schedule are reported on 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. GENERALThe accompanying Consolidated Schedule of Expenditures of Federal Awards (the Schedule) has been prepared in accordance with accounting principles generally accepted in the United States of America. Amounts included in the Schedule are actual expenditures for the year ended December 31, 2022. The accompanying Schedule presents the activity of all federal award programs of Finger Lakes Regional Health System, Inc. d/b/a Finger Lakes Health (the System). 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 Systems operations, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the System.
Title: PROVIDER RELIEF FUNDS (PRF) Accounting Policies: Expenditures reported on the Schedule are reported on 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The amount included in the schedule of expenditures of federal awards is based upon the September 30, 2022 and March 31, 2023 PRF Reports submitted to the Department of Health and Human Services.

Finding Details

Finding 2022-001
Finding 2022?001 ? Assistance Listing No. 84.425 ? COVID-19 Education Stabilization Fund Criteria The System is required to use procurement procedures for the acquisition of property or services under COVID-19 Education Stabilization Fund, HEERF funding in compliance with the competitive procurement requirements of the Uniform Guidance. The System must maintain records sufficient to detail procurement transactions for the acquisition of property or services, and documentation showing compliance with procurement requirements under the Uniform Guidance. Condition/Context As part of our compliance testing, we reviewed the HEERF institutional funds expended on acquisition of property or services. As a result of this review, we noted that competitive bidding procurement requirements for HEERF awards were not met and competitive bids were not obtained for the School of Nursing project funded by HEERF. Cause The System did not establish a formal documented procurement policy to ensure compliance with applicable requirements under HEERF awards and competitive bids were not obtained. While the System worked collaboratively with the general contractor in the selection of subcontractors for the capital projects, competitive proposals were not obtained for the general contractor in accordance with the requirements of the Uniform Guidance procedure standards. While the System did review and select subcontractors with input from the general contractor, the Systems process for bidding relative to the subcontractors, including the final review and engagement of the subcontractors was not documented. Effect Documentation was not sufficient to demonstrate compliance with applicable procurement standards. Recommendation We recommend that the System establish procurement policies to meet federal compliance requirements. Views of Responsible Officials Management agrees with the recommendation and will establish and document written procurement procedures and maintain sufficient documentation for transactions including acquisition of property or services to ensure competitive bidding is obtained.
Finding 2022-001
Finding 2022?001 ? Assistance Listing No. 84.425 ? COVID-19 Education Stabilization Fund Criteria The System is required to use procurement procedures for the acquisition of property or services under COVID-19 Education Stabilization Fund, HEERF funding in compliance with the competitive procurement requirements of the Uniform Guidance. The System must maintain records sufficient to detail procurement transactions for the acquisition of property or services, and documentation showing compliance with procurement requirements under the Uniform Guidance. Condition/Context As part of our compliance testing, we reviewed the HEERF institutional funds expended on acquisition of property or services. As a result of this review, we noted that competitive bidding procurement requirements for HEERF awards were not met and competitive bids were not obtained for the School of Nursing project funded by HEERF. Cause The System did not establish a formal documented procurement policy to ensure compliance with applicable requirements under HEERF awards and competitive bids were not obtained. While the System worked collaboratively with the general contractor in the selection of subcontractors for the capital projects, competitive proposals were not obtained for the general contractor in accordance with the requirements of the Uniform Guidance procedure standards. While the System did review and select subcontractors with input from the general contractor, the Systems process for bidding relative to the subcontractors, including the final review and engagement of the subcontractors was not documented. Effect Documentation was not sufficient to demonstrate compliance with applicable procurement standards. Recommendation We recommend that the System establish procurement policies to meet federal compliance requirements. Views of Responsible Officials Management agrees with the recommendation and will establish and document written procurement procedures and maintain sufficient documentation for transactions including acquisition of property or services to ensure competitive bidding is obtained.