FAC Explorer

Audit 52431

FY End
2022-06-30
Total Expended
$2.13M
Findings
2
Programs
8
Organization: Garrett Regional Medical Center (MD)
Year: 2022 Accepted: 2023-10-01
Auditor: Forvis LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
50945 2022-001 Material Weakness - AN
627387 2022-001 Material Weakness - AN

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $702,833 Yes 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $601,262 Yes 1
10.855 Distance Learning and Telemedicine Loans and Grants $411,921 - 0
93.155 Rural Health Research Centers $184,412 - 0
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $160,757 - 0
93.498 Provider Relief Fund $26,538 - 0
93.074 Hospital Preparedness Program (hpp) and Public Health Emergency Preparedness (phep) Aligned Cooperative Agreements $24,711 - 0
93.301 Small Rural Hospital Improvement Grant Program $12,836 - 0

Contacts

Name Title Type
K24YVQD1CC84 Lori Dixon Auditee
3015334251 Norman Mosrie Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures are reported in the SEFA are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The accompanying Schedule also includes expenditures for Assistance Listing No. 97.036 and Assistance Listing No. 10.766 from their respective grant periods which each began prior to fiscal year 2022.The System has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. 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 (SEFA) includes the federal award activity Garrett County Memorial Hospital and subsidiaries, d/b/a Garrett Regional Medical Center (collectively, the System) under the programs of the federal government for the year ended June 30, 2022. The information in this SEFA is presented in accordance with the requirements of Title 2 US Code of Federal Regulations Part 200, Uniform Administration Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). All federal awards received directly and indirectly from federal agencies are included in this SEFA. Because the SEFA presents only a selected portion of the operations of the System, it is not intended to and does not present the financial position, changes in net assets or cash flows of the System.
Title: Contingencies Accounting Policies: Expenditures are reported in the SEFA are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The accompanying Schedule also includes expenditures for Assistance Listing No. 97.036 and Assistance Listing No. 10.766 from their respective grant periods which each began prior to fiscal year 2022.The System has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. 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 are reported in the SEFA are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The accompanying Schedule also includes expenditures for Assistance Listing No. 97.036 and Assistance Listing No. 10.766 from their respective grant periods which each began prior to fiscal year 2022.The System has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. 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 June 30, 2022 reflects Assistance Listing changes through April 2022.

Finding Details

Finding 2022-001
Finding 2022-001 ? Internal Controls over Allowable Costs, Activities Allowed and Special Tests and Provisions Material Weakness and Material Noncompliance Assistance Listing Number: 97.036 COVID-19 Disaster Grants ? Public Assistance Criteria: 2 CFR 200.303 requires that a non-federal entity must ?(a) 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. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States and the ?Internal Control Integrated Framework,? issued by the Committee of Sponsoring Organizations of the Treadway Commission (?COSO?). Condition: During our testing of compliance and internal controls over allowability and special tests reporting of expenditures, it was determined that internal controls over allowable costs and activities allowed and special tests reporting are not designed to prevent and detect unallowable expenditures from being submitted for reimbursement. Consequently, we noted approximately $8,550 of ineligible expenditures were submitted on the reimbursement request. Questioned Costs ? $8,550 Context: Our testing noted approximately $8,550 of unallowable expenditures, out of a sample tested approximating $68,000, that were reported on the reimbursement request for Disaster Grants- Public Assistance. Our sample was not intended to be statistically valid. Cause: Lack of effectively designed and implemented internal controls over allowability of expenditures and special tests and provisions. Effect: Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be relied upon to effectively prevent or detect noncompliance. Thus, unallowable expenditures may be submitted for reimbursement. Recommendation: Effective supervisory review internal controls over allowable costs, activities allowed and special tests and provisions should be implemented to ensure expenditures submitted for reimbursement meet the criteria established in the terms and conditions. Identification of prior year finding: N/A Management Response: See management?s corrective action plan included at the end of the report.
Finding 2022-001
Finding 2022-001 ? Internal Controls over Allowable Costs, Activities Allowed and Special Tests and Provisions Material Weakness and Material Noncompliance Assistance Listing Number: 97.036 COVID-19 Disaster Grants ? Public Assistance Criteria: 2 CFR 200.303 requires that a non-federal entity must ?(a) 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. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States and the ?Internal Control Integrated Framework,? issued by the Committee of Sponsoring Organizations of the Treadway Commission (?COSO?). Condition: During our testing of compliance and internal controls over allowability and special tests reporting of expenditures, it was determined that internal controls over allowable costs and activities allowed and special tests reporting are not designed to prevent and detect unallowable expenditures from being submitted for reimbursement. Consequently, we noted approximately $8,550 of ineligible expenditures were submitted on the reimbursement request. Questioned Costs ? $8,550 Context: Our testing noted approximately $8,550 of unallowable expenditures, out of a sample tested approximating $68,000, that were reported on the reimbursement request for Disaster Grants- Public Assistance. Our sample was not intended to be statistically valid. Cause: Lack of effectively designed and implemented internal controls over allowability of expenditures and special tests and provisions. Effect: Without the proper implementation of an effectively designed system of internal controls, the internal control system cannot be relied upon to effectively prevent or detect noncompliance. Thus, unallowable expenditures may be submitted for reimbursement. Recommendation: Effective supervisory review internal controls over allowable costs, activities allowed and special tests and provisions should be implemented to ensure expenditures submitted for reimbursement meet the criteria established in the terms and conditions. Identification of prior year finding: N/A Management Response: See management?s corrective action plan included at the end of the report.