FAC Explorer

Audit 9444

FY End
2023-03-31
Total Expended
$15.30M
Findings
6
Programs
5
Organization: Salem Township Hospital (IL)
Year: 2023 Accepted: 2024-01-04
Auditor: Wipfli LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
7274 2023-001 Significant Deficiency - ABL
7275 2023-001 Significant Deficiency - ABHN
7276 2023-001 Significant Deficiency - ABHN
583716 2023-001 Significant Deficiency - ABL
583717 2023-001 Significant Deficiency - ABHN
583718 2023-001 Significant Deficiency - ABHN

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $995,306 Yes 1
93.697 Covid-19 Testing for Rural Health Clinics $298,923 - 0
10.766 Community Facilities Loans and Grants $29,040 - 1
93.301 Small Rural Hospital Improvement Grant Program $11,938 - 0
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $2,500 - 0

Contacts

Name Title Type
JJA7M9FPNVQ6 Amy Gray Auditee
6185483194 Paul Traczek Auditor
No contacts on file

Notes to SEFA

Title: Note 1: Basis of Presentation Accounting Policies: With the exception of expenditures related to the Provider Relief Fund (“PRF”), expenditures on the Schedule are reported on the accrual basis of accounting and 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. The PRF is not subject to cost principles requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF are based on the PRF period of availability, terms and conditions of the PRF program, and amounts reported in the PRF portal for the various reporting periods with due dates through March 31, 2023 De Minimis Rate Used: N Rate Explanation: The Hospital has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (“Schedule”) includes the federal award activity of Salem Township Hospital (the “Hospital”). 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 (the “Uniform Guidance”). Because the schedule presents only a selected portion of the operations of the Hospital, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Hospital.
Title: Note 2: Summary of Significant Accounting Policies Accounting Policies: With the exception of expenditures related to the Provider Relief Fund (“PRF”), expenditures on the Schedule are reported on the accrual basis of accounting and 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. The PRF is not subject to cost principles requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF are based on the PRF period of availability, terms and conditions of the PRF program, and amounts reported in the PRF portal for the various reporting periods with due dates through March 31, 2023 De Minimis Rate Used: N Rate Explanation: The Hospital has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. With the exception of expenditures related to the Provider Relief Fund (“PRF”), expenditures on the Schedule are reported on the accrual basis of accounting and 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. The PRF is not subject to cost principles requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF are based on the PRF period of availability, terms and conditions of the PRF program, and amounts reported in the PRF portal for the various reporting periods with due dates through March 31, 2023.
Title: Note 3: Indirect Cost Accounting Policies: With the exception of expenditures related to the Provider Relief Fund (“PRF”), expenditures on the Schedule are reported on the accrual basis of accounting and 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. The PRF is not subject to cost principles requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF are based on the PRF period of availability, terms and conditions of the PRF program, and amounts reported in the PRF portal for the various reporting periods with due dates through March 31, 2023 De Minimis Rate Used: N Rate Explanation: The Hospital has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Hospital has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 4: Subrecipients Accounting Policies: With the exception of expenditures related to the Provider Relief Fund (“PRF”), expenditures on the Schedule are reported on the accrual basis of accounting and 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. The PRF is not subject to cost principles requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF are based on the PRF period of availability, terms and conditions of the PRF program, and amounts reported in the PRF portal for the various reporting periods with due dates through March 31, 2023 De Minimis Rate Used: N Rate Explanation: The Hospital has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Hospital passed no federal awards through to subrecipients.
Title: Note 5: Interest Earned on Provider Relief Funds Accounting Policies: With the exception of expenditures related to the Provider Relief Fund (“PRF”), expenditures on the Schedule are reported on the accrual basis of accounting and 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. The PRF is not subject to cost principles requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF are based on the PRF period of availability, terms and conditions of the PRF program, and amounts reported in the PRF portal for the various reporting periods with due dates through March 31, 2023 De Minimis Rate Used: N Rate Explanation: The Hospital has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. PRF reported on the Schedule includes $5,852 of interest earned on PRF proceeds and used for allowable purposes.
Title: Note 6: Balance of Outstanding Loans Accounting Policies: With the exception of expenditures related to the Provider Relief Fund (“PRF”), expenditures on the Schedule are reported on the accrual basis of accounting and 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. The PRF is not subject to cost principles requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF are based on the PRF period of availability, terms and conditions of the PRF program, and amounts reported in the PRF portal for the various reporting periods with due dates through March 31, 2023 De Minimis Rate Used: N Rate Explanation: The Hospital has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The loan balances outstanding at the beginning of the year are included in the federal expenditures presented in the Schedule. There were no new loans received during the year ending March 31, 2023. The amount outstanding below represents the balance outstanding on the loans at the end of year as of March 31, 2023. See the Notes to the SEFA for chart/table.

Finding Details

Finding 2023-001
Account Reconciliations and Audit Adjustments Condition – During the audit, it was noted that account reconciliations are not performed on a routine basis for a number of general ledger accounts, which resulted in a significant number of audit adjustments as well as year-end adjustments to the internal financial statements. Criteria – The presence of accounts in an organization’s general ledger that are reconciled only annually or not routinely throughout the year, and the significant inconsistent reporting between the monthly financial statements and annual audited financial statements, are considered an internal control weakness. Effect – Account reconciliations help to ensure that amounts recorded on the general ledger are accurately stated. A lack of account reconciliations can cause numerous audit adjustments and significant differences in financial reporting. Accurate financial reporting is essential for business planning and review of financial information throughout the year. Recommendation – We recommend the Hospital put into place procedures for reconciling key general ledger accounts on a routine basis throughout the year, as well as develop processes to review the reconciliations on a routine basis. Management’s Response – The Hospital hired a new Chief Financial Officer subsequent to the year ended March 31, 2023, and the new Chief Financial Officer has begun implementing policies and procedures to reconcile key accounts on a routine basis throughout the year.
Finding 2023-001
Account Reconciliations and Audit Adjustments Condition – During the audit, it was noted that account reconciliations are not performed on a routine basis for a number of general ledger accounts, which resulted in a significant number of audit adjustments as well as year-end adjustments to the internal financial statements. Criteria – The presence of accounts in an organization’s general ledger that are reconciled only annually or not routinely throughout the year, and the significant inconsistent reporting between the monthly financial statements and annual audited financial statements, are considered an internal control weakness. Effect – Account reconciliations help to ensure that amounts recorded on the general ledger are accurately stated. A lack of account reconciliations can cause numerous audit adjustments and significant differences in financial reporting. Accurate financial reporting is essential for business planning and review of financial information throughout the year. Recommendation – We recommend the Hospital put into place procedures for reconciling key general ledger accounts on a routine basis throughout the year, as well as develop processes to review the reconciliations on a routine basis. Management’s Response – The Hospital hired a new Chief Financial Officer subsequent to the year ended March 31, 2023, and the new Chief Financial Officer has begun implementing policies and procedures to reconcile key accounts on a routine basis throughout the year.
Finding 2023-001
Account Reconciliations and Audit Adjustments Condition – During the audit, it was noted that account reconciliations are not performed on a routine basis for a number of general ledger accounts, which resulted in a significant number of audit adjustments as well as year-end adjustments to the internal financial statements. Criteria – The presence of accounts in an organization’s general ledger that are reconciled only annually or not routinely throughout the year, and the significant inconsistent reporting between the monthly financial statements and annual audited financial statements, are considered an internal control weakness. Effect – Account reconciliations help to ensure that amounts recorded on the general ledger are accurately stated. A lack of account reconciliations can cause numerous audit adjustments and significant differences in financial reporting. Accurate financial reporting is essential for business planning and review of financial information throughout the year. Recommendation – We recommend the Hospital put into place procedures for reconciling key general ledger accounts on a routine basis throughout the year, as well as develop processes to review the reconciliations on a routine basis. Management’s Response – The Hospital hired a new Chief Financial Officer subsequent to the year ended March 31, 2023, and the new Chief Financial Officer has begun implementing policies and procedures to reconcile key accounts on a routine basis throughout the year.
Finding 2023-001
Account Reconciliations and Audit Adjustments Condition – During the audit, it was noted that account reconciliations are not performed on a routine basis for a number of general ledger accounts, which resulted in a significant number of audit adjustments as well as year-end adjustments to the internal financial statements. Criteria – The presence of accounts in an organization’s general ledger that are reconciled only annually or not routinely throughout the year, and the significant inconsistent reporting between the monthly financial statements and annual audited financial statements, are considered an internal control weakness. Effect – Account reconciliations help to ensure that amounts recorded on the general ledger are accurately stated. A lack of account reconciliations can cause numerous audit adjustments and significant differences in financial reporting. Accurate financial reporting is essential for business planning and review of financial information throughout the year. Recommendation – We recommend the Hospital put into place procedures for reconciling key general ledger accounts on a routine basis throughout the year, as well as develop processes to review the reconciliations on a routine basis. Management’s Response – The Hospital hired a new Chief Financial Officer subsequent to the year ended March 31, 2023, and the new Chief Financial Officer has begun implementing policies and procedures to reconcile key accounts on a routine basis throughout the year.
Finding 2023-001
Account Reconciliations and Audit Adjustments Condition – During the audit, it was noted that account reconciliations are not performed on a routine basis for a number of general ledger accounts, which resulted in a significant number of audit adjustments as well as year-end adjustments to the internal financial statements. Criteria – The presence of accounts in an organization’s general ledger that are reconciled only annually or not routinely throughout the year, and the significant inconsistent reporting between the monthly financial statements and annual audited financial statements, are considered an internal control weakness. Effect – Account reconciliations help to ensure that amounts recorded on the general ledger are accurately stated. A lack of account reconciliations can cause numerous audit adjustments and significant differences in financial reporting. Accurate financial reporting is essential for business planning and review of financial information throughout the year. Recommendation – We recommend the Hospital put into place procedures for reconciling key general ledger accounts on a routine basis throughout the year, as well as develop processes to review the reconciliations on a routine basis. Management’s Response – The Hospital hired a new Chief Financial Officer subsequent to the year ended March 31, 2023, and the new Chief Financial Officer has begun implementing policies and procedures to reconcile key accounts on a routine basis throughout the year.
Finding 2023-001
Account Reconciliations and Audit Adjustments Condition – During the audit, it was noted that account reconciliations are not performed on a routine basis for a number of general ledger accounts, which resulted in a significant number of audit adjustments as well as year-end adjustments to the internal financial statements. Criteria – The presence of accounts in an organization’s general ledger that are reconciled only annually or not routinely throughout the year, and the significant inconsistent reporting between the monthly financial statements and annual audited financial statements, are considered an internal control weakness. Effect – Account reconciliations help to ensure that amounts recorded on the general ledger are accurately stated. A lack of account reconciliations can cause numerous audit adjustments and significant differences in financial reporting. Accurate financial reporting is essential for business planning and review of financial information throughout the year. Recommendation – We recommend the Hospital put into place procedures for reconciling key general ledger accounts on a routine basis throughout the year, as well as develop processes to review the reconciliations on a routine basis. Management’s Response – The Hospital hired a new Chief Financial Officer subsequent to the year ended March 31, 2023, and the new Chief Financial Officer has begun implementing policies and procedures to reconcile key accounts on a routine basis throughout the year.