Audit 47950

FY End

2022-06-30

Total Expended

$23.63M

Findings

2

Programs

1

Organization: Froedtert Health, Inc. and Affiliates (WI)

Year: 2022 Accepted: 2022-12-12

Auditor: Kpmg LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
39872	2022-001	Material Weakness	Yes	ABL
616314	2022-001	Material Weakness	Yes	ABL

ALN	Program	Spent	Major	Findings
93.498	Covid-19 Provider Relief Fund	$23.63M	Yes	1

Contacts

Name	Title	Type
KYSEBY3LV4G9	David Dirksmeyer	Auditee
4147770929	Charles Klescewski	Auditor
No contacts on file

Notes to SEFA

Accounting Policies: (1) Basis of PresentationThe schedule of expenditures of federal awards (the Schedule) includes all grants, contracts and similaragreements, loans, and loan guarantee agreements entered into directly between Froedtert Health, Inc.and Affiliates (Froedtert) and agencies and departments of the federal government, as well as awards frompass-through entities, and should be read in conjunction with Froedterts consolidated financial statements.For the year ended June 30, 2022, Froedtert had no expenditures in the form of noncash assistance, nofederally provided insurance in effect during the year, and no loans or loan guarantees outstanding. Theaccompanying 2022 Schedule is prepared on the accrual basis of accounting.Expenditures consist of direct and indirect costs. Direct costs are those that can be easily identified with anindividual Federally sponsored project; whereas, indirect costs cannot be easily identified with an individualsponsored project. Indirect costs are the costs of services and resources that benefit many sponsoredprojects as well as non-sponsored projects and activities. The information in this Schedule is presented inaccordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, UniformAdministrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance).Froedtert and Federal agencies use an indirect cost rate to charge indirect costs to individual sponsoredprojects. In 2022, Froedtert charged no indirect costs to programs. (2) Major program:Provider Relief FundsThe Provider Relief Fund (PRF) program is administered by the Health Resources and ServicesAdministration to support eligible providers during the COVID 19 pandemic and was approved for fundingoriginally under the Coronavirus Aid, Relief and Economic Securities Act. Funds were provided to eligibleproviders to support healthcare related expenses or lost revenues attributable to the Coronavirus withoutapplication but rather with terms and conditions. These terms and conditions required acceptance throughan online portal or the funds were to be returned. Froedtert accepted the terms and conditions.The accompanying schedule of expenditures of Federal awards includes PRF for Periods 2 and 3 definedas payments received between July 1, 2020 to June 30, 2021. Tax Identification Numbers (TIN) forFroedtert include:Entity name TINSt. Josephs Hospital of West Bend 390806302St Josephs Hospital of West Bend Surgery Center 391954169Froedtert & The Medical College of Wisconsin Community Physicians Inc. 272042610Community Memorial Hospital of Menomonee Falls Inc. 390987025Froedtert Memorial Lutheran Hospital 396105970Froedtert Surgery Center LLC 201499345 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001

Per 2 CFR 200.303, guidance requires non-Federal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include establishing and maintaining adequate controls over the accuracy of financial reports required for the program. Condition and Context In preparing to report for Period 2 and Period 3 Provider Relief Funds (PRF) on the portal, management had not established adequate internal control procedures and documentation to ensure the accuracy of lost revenues reported in accordance with federal regulations. Cause and Effect/Potential Effect Management did not have appropriate and sufficient review controls in place during the fiscal year to ensure the accuracy of reporting of Period 2 and Period 3 Provider Relief Funds on the portal.

Finding 2022-001

Per 2 CFR 200.303, guidance requires non-Federal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include establishing and maintaining adequate controls over the accuracy of financial reports required for the program. Condition and Context In preparing to report for Period 2 and Period 3 Provider Relief Funds (PRF) on the portal, management had not established adequate internal control procedures and documentation to ensure the accuracy of lost revenues reported in accordance with federal regulations. Cause and Effect/Potential Effect Management did not have appropriate and sufficient review controls in place during the fiscal year to ensure the accuracy of reporting of Period 2 and Period 3 Provider Relief Funds on the portal.