CORRECTIVE ACTION PLAN April 25, 2023 Bath Community Hospital respectfully submits the following corrective action plan for the year ended December 31, 2022. Name and address of independent public accounting firm: Brown, Edwards & Company, L.L.P. 1909 Financial Drive Harrisonburg, Virginia 22801 ...
CORRECTIVE ACTION PLAN April 25, 2023 Bath Community Hospital respectfully submits the following corrective action plan for the year ended December 31, 2022. Name and address of independent public accounting firm: Brown, Edwards & Company, L.L.P. 1909 Financial Drive Harrisonburg, Virginia 22801 Audit period: December 31, 2022 The findings from the December 31, 2022 Schedule of Findings and Questioned Costs (the ?Schedule?) are discussed below. The findings are numbered consistently with the number assigned in the Schedule. FINDINGS AND QUESTIONED COSTS ? MAJOR FEDERAL AWARD PROGRAM AUDIT 2022-01: Controls Over Payroll Action Forms ? Provider Relief Funds ? AL# 93.498 (Significant Deficiency in Controls Over Compliance) Condition: During our review of payroll expenses charged to the program, we noted payroll action forms were either not updated or missing entirely. Criteria: Controls must be in place to ensure employee time charged to the program is supported by internal rate forms. Cause: Payroll action forms were out of date or missing and thus did not support the rate charged to the program. Effect: There was no audit trail to support approval of pay rates charged to the program. Questioned Cost Amount: Not applicable. Perspective Information: Four items out of 25 tested. Context: Controls were not implemented to ensure payroll action forms were properly used and reviewed prior to recording employee time to the program. Recommendation: We recommend that payroll action forms or other documentation be maintained to support payroll rates charged to federal programs. Views of Responsible Officials and Planned Corrective Action: Management was receptive of the finding and will continue to have heighted scrutiny in its review of personnel files. 2022-02: Controls Over Payroll Review ? Provider Relief Funds ? AL# 93.498 (Significant Deficiency in Controls Over Compliance) Condition: During our review of payroll expenses charged to the program, we noted that there were not adequate controls in place to review timecards prior to charging the payroll expense to the program. Criteria: Controls must be in place to ensure employee time cards are approved to ensure time charged to the program is appropriate. Cause: During the transition between payroll systems, there was a lack of reviews to ensure proper amounts were being charged to the program. Effect: Payroll timecards were not reviewed or approved for the first two payrolls after the transition to the new software. Questioned Cost Amount: Not applicable. Perspective Information: Three items out of 25 tested. Context: The Hospital was transitioning to a new payroll system. During that time, they did not maintain adequate controls. Recommendation: We recommend that all timecards are approved. Additionally, if the payroll processor does not keep such information electronically, we recommend maintaining physical documents as support. Views of Responsible Officials and Planned Corrective Action: Management was receptive of the finding and will continue to have heighted scrutiny in its review of time sheets. If the Federal Audit Clearinghouse has questions regarding this plan, please call Tom Vandenhoven, CFO at 540-839-7000.