2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.
Finding 2022-001 Identification of the Federal Program: Federal Agency: U.S. Department of Health and Human Services, United States Department of Defense Assistance Listing: Various ? Research & Development (R&D) Cluster Pass-Through Grantor: Various Pass-Through Award Number: Various Pass-Through Award Period: Various Federal Agency: Department of Homeland Security Assistance Listing: 97.036 ? COVID-19 Disaster Grants ? Public Assistance (Presidentially Declared Disasters) (FEMA) Pass-Through Grantor: Michigan State Police Emergency Management and Homeland Security Division Pass-Through Award Number: 4494-DR-MI Pass-Through Award Period: 1/20/2020-7/1/2022 Federal Agency: U.S. Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA) Assistance Listing: 93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Pass-Through Award Period: 1/1/2020-12/31/2022 (Periods 3 and 4) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): 2 CFR Section 200.303 of the Uniform Guidance States the Following Regarding Internal Control: ?The 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 or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 2 CFR 200.510 requires that the ?auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended in accordance with Section 200.502.? 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: The Schedule of Expenditures of Federal Awards (the Schedule) prepared by the Corewell Health and Subsidiaries (the System) did not appropriately reflect the federal expenses incurred. The final Schedule was corrected for the differences identified. Cause: Management did not design internal controls to ensure appropriate accumulation of the data necessary to complete the Schedule. Effect or Potential Effect: Federal expenditures were inappropriately included or excluded from the Schedule. Questioned Costs: None Context: Total federal expenses included on the Schedule were $102,235,937 for the year ended December 31, 2022. Total expenses included on the final Schedule were $101,562,371 for the year ended December 31, 2022. The federal expenditures were misstated as follows: See Schedule of Findings and Questioned Costs. Identification as a Repeat Finding: Partial Repeat Finding of Corewell Health East 2021-001. Recommendation: Management should assess its internal controls over the identification of federal expenditures to ensure the Schedule is complete. Views of Responsible Officials: The enhanced Schedule process and controls implemented by Corewell Health East in 2023 will be reviewed. The misstated amounts of the R&D Cluster occurred as a result of the timing of posted expenses during the first month of the merger of Spectrum Health and Beaumont Health in February 2022. This was a one-time occurrence and we do not anticipate that this will be an issue in future years. In addition, the successful implementation and transition to Workday, a new Corporate financial management system, has improved award setup functionality that enables improved differentiation of awards, identifying which need to be included on the annual Schedule of Expenditures of Federal Awards and those that should be excluded. The understatement related to FEMA was a one-time occurrence related to the clarification of guidelines on the inclusion of a new Category Z FEMA obligation in 2022 on the SEFA. This has been corrected in 2023. The overstatement related to PRF was due to an improper inclusion of Corewell Health East funding on the Schedule and an adjustment related to the submitted amount of Corewell Health West funding on the Schedule. On the 2023 SEFA we will implement a management review and sign-off of the inputs prior to submission.
Finding 2022-001 Identification of the Federal Program: Federal Agency: U.S. Department of Health and Human Services, United States Department of Defense Assistance Listing: Various ? Research & Development (R&D) Cluster Pass-Through Grantor: Various Pass-Through Award Number: Various Pass-Through Award Period: Various Federal Agency: Department of Homeland Security Assistance Listing: 97.036 ? COVID-19 Disaster Grants ? Public Assistance (Presidentially Declared Disasters) (FEMA) Pass-Through Grantor: Michigan State Police Emergency Management and Homeland Security Division Pass-Through Award Number: 4494-DR-MI Pass-Through Award Period: 1/20/2020-7/1/2022 Federal Agency: U.S. Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA) Assistance Listing: 93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Pass-Through Award Period: 1/1/2020-12/31/2022 (Periods 3 and 4) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): 2 CFR Section 200.303 of the Uniform Guidance States the Following Regarding Internal Control: ?The 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 or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 2 CFR 200.510 requires that the ?auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended in accordance with Section 200.502.? 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: The Schedule of Expenditures of Federal Awards (the Schedule) prepared by the Corewell Health and Subsidiaries (the System) did not appropriately reflect the federal expenses incurred. The final Schedule was corrected for the differences identified. Cause: Management did not design internal controls to ensure appropriate accumulation of the data necessary to complete the Schedule. Effect or Potential Effect: Federal expenditures were inappropriately included or excluded from the Schedule. Questioned Costs: None Context: Total federal expenses included on the Schedule were $102,235,937 for the year ended December 31, 2022. Total expenses included on the final Schedule were $101,562,371 for the year ended December 31, 2022. The federal expenditures were misstated as follows: See Schedule of Findings and Questioned Costs. Identification as a Repeat Finding: Partial Repeat Finding of Corewell Health East 2021-001. Recommendation: Management should assess its internal controls over the identification of federal expenditures to ensure the Schedule is complete. Views of Responsible Officials: The enhanced Schedule process and controls implemented by Corewell Health East in 2023 will be reviewed. The misstated amounts of the R&D Cluster occurred as a result of the timing of posted expenses during the first month of the merger of Spectrum Health and Beaumont Health in February 2022. This was a one-time occurrence and we do not anticipate that this will be an issue in future years. In addition, the successful implementation and transition to Workday, a new Corporate financial management system, has improved award setup functionality that enables improved differentiation of awards, identifying which need to be included on the annual Schedule of Expenditures of Federal Awards and those that should be excluded. The understatement related to FEMA was a one-time occurrence related to the clarification of guidelines on the inclusion of a new Category Z FEMA obligation in 2022 on the SEFA. This has been corrected in 2023. The overstatement related to PRF was due to an improper inclusion of Corewell Health East funding on the Schedule and an adjustment related to the submitted amount of Corewell Health West funding on the Schedule. On the 2023 SEFA we will implement a management review and sign-off of the inputs prior to submission.
Finding 2022-001 Identification of the Federal Program: Federal Agency: U.S. Department of Health and Human Services, United States Department of Defense Assistance Listing: Various ? Research & Development (R&D) Cluster Pass-Through Grantor: Various Pass-Through Award Number: Various Pass-Through Award Period: Various Federal Agency: Department of Homeland Security Assistance Listing: 97.036 ? COVID-19 Disaster Grants ? Public Assistance (Presidentially Declared Disasters) (FEMA) Pass-Through Grantor: Michigan State Police Emergency Management and Homeland Security Division Pass-Through Award Number: 4494-DR-MI Pass-Through Award Period: 1/20/2020-7/1/2022 Federal Agency: U.S. Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA) Assistance Listing: 93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Pass-Through Award Period: 1/1/2020-12/31/2022 (Periods 3 and 4) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): 2 CFR Section 200.303 of the Uniform Guidance States the Following Regarding Internal Control: ?The 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 or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 2 CFR 200.510 requires that the ?auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended in accordance with Section 200.502.? 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: The Schedule of Expenditures of Federal Awards (the Schedule) prepared by the Corewell Health and Subsidiaries (the System) did not appropriately reflect the federal expenses incurred. The final Schedule was corrected for the differences identified. Cause: Management did not design internal controls to ensure appropriate accumulation of the data necessary to complete the Schedule. Effect or Potential Effect: Federal expenditures were inappropriately included or excluded from the Schedule. Questioned Costs: None Context: Total federal expenses included on the Schedule were $102,235,937 for the year ended December 31, 2022. Total expenses included on the final Schedule were $101,562,371 for the year ended December 31, 2022. The federal expenditures were misstated as follows: See Schedule of Findings and Questioned Costs. Identification as a Repeat Finding: Partial Repeat Finding of Corewell Health East 2021-001. Recommendation: Management should assess its internal controls over the identification of federal expenditures to ensure the Schedule is complete. Views of Responsible Officials: The enhanced Schedule process and controls implemented by Corewell Health East in 2023 will be reviewed. The misstated amounts of the R&D Cluster occurred as a result of the timing of posted expenses during the first month of the merger of Spectrum Health and Beaumont Health in February 2022. This was a one-time occurrence and we do not anticipate that this will be an issue in future years. In addition, the successful implementation and transition to Workday, a new Corporate financial management system, has improved award setup functionality that enables improved differentiation of awards, identifying which need to be included on the annual Schedule of Expenditures of Federal Awards and those that should be excluded. The understatement related to FEMA was a one-time occurrence related to the clarification of guidelines on the inclusion of a new Category Z FEMA obligation in 2022 on the SEFA. This has been corrected in 2023. The overstatement related to PRF was due to an improper inclusion of Corewell Health East funding on the Schedule and an adjustment related to the submitted amount of Corewell Health West funding on the Schedule. On the 2023 SEFA we will implement a management review and sign-off of the inputs prior to submission.
Finding 2022-001 Identification of the Federal Program: Federal Agency: U.S. Department of Health and Human Services, United States Department of Defense Assistance Listing: Various ? Research & Development (R&D) Cluster Pass-Through Grantor: Various Pass-Through Award Number: Various Pass-Through Award Period: Various Federal Agency: Department of Homeland Security Assistance Listing: 97.036 ? COVID-19 Disaster Grants ? Public Assistance (Presidentially Declared Disasters) (FEMA) Pass-Through Grantor: Michigan State Police Emergency Management and Homeland Security Division Pass-Through Award Number: 4494-DR-MI Pass-Through Award Period: 1/20/2020-7/1/2022 Federal Agency: U.S. Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA) Assistance Listing: 93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Pass-Through Award Period: 1/1/2020-12/31/2022 (Periods 3 and 4) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): 2 CFR Section 200.303 of the Uniform Guidance States the Following Regarding Internal Control: ?The 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 or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 2 CFR 200.510 requires that the ?auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended in accordance with Section 200.502.? 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: The Schedule of Expenditures of Federal Awards (the Schedule) prepared by the Corewell Health and Subsidiaries (the System) did not appropriately reflect the federal expenses incurred. The final Schedule was corrected for the differences identified. Cause: Management did not design internal controls to ensure appropriate accumulation of the data necessary to complete the Schedule. Effect or Potential Effect: Federal expenditures were inappropriately included or excluded from the Schedule. Questioned Costs: None Context: Total federal expenses included on the Schedule were $102,235,937 for the year ended December 31, 2022. Total expenses included on the final Schedule were $101,562,371 for the year ended December 31, 2022. The federal expenditures were misstated as follows: See Schedule of Findings and Questioned Costs. Identification as a Repeat Finding: Partial Repeat Finding of Corewell Health East 2021-001. Recommendation: Management should assess its internal controls over the identification of federal expenditures to ensure the Schedule is complete. Views of Responsible Officials: The enhanced Schedule process and controls implemented by Corewell Health East in 2023 will be reviewed. The misstated amounts of the R&D Cluster occurred as a result of the timing of posted expenses during the first month of the merger of Spectrum Health and Beaumont Health in February 2022. This was a one-time occurrence and we do not anticipate that this will be an issue in future years. In addition, the successful implementation and transition to Workday, a new Corporate financial management system, has improved award setup functionality that enables improved differentiation of awards, identifying which need to be included on the annual Schedule of Expenditures of Federal Awards and those that should be excluded. The understatement related to FEMA was a one-time occurrence related to the clarification of guidelines on the inclusion of a new Category Z FEMA obligation in 2022 on the SEFA. This has been corrected in 2023. The overstatement related to PRF was due to an improper inclusion of Corewell Health East funding on the Schedule and an adjustment related to the submitted amount of Corewell Health West funding on the Schedule. On the 2023 SEFA we will implement a management review and sign-off of the inputs prior to submission.
Finding 2022-001 Identification of the Federal Program: Federal Agency: U.S. Department of Health and Human Services, United States Department of Defense Assistance Listing: Various ? Research & Development (R&D) Cluster Pass-Through Grantor: Various Pass-Through Award Number: Various Pass-Through Award Period: Various Federal Agency: Department of Homeland Security Assistance Listing: 97.036 ? COVID-19 Disaster Grants ? Public Assistance (Presidentially Declared Disasters) (FEMA) Pass-Through Grantor: Michigan State Police Emergency Management and Homeland Security Division Pass-Through Award Number: 4494-DR-MI Pass-Through Award Period: 1/20/2020-7/1/2022 Federal Agency: U.S. Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA) Assistance Listing: 93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Pass-Through Award Period: 1/1/2020-12/31/2022 (Periods 3 and 4) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): 2 CFR Section 200.303 of the Uniform Guidance States the Following Regarding Internal Control: ?The 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 or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 2 CFR 200.510 requires that the ?auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended in accordance with Section 200.502.? 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: The Schedule of Expenditures of Federal Awards (the Schedule) prepared by the Corewell Health and Subsidiaries (the System) did not appropriately reflect the federal expenses incurred. The final Schedule was corrected for the differences identified. Cause: Management did not design internal controls to ensure appropriate accumulation of the data necessary to complete the Schedule. Effect or Potential Effect: Federal expenditures were inappropriately included or excluded from the Schedule. Questioned Costs: None Context: Total federal expenses included on the Schedule were $102,235,937 for the year ended December 31, 2022. Total expenses included on the final Schedule were $101,562,371 for the year ended December 31, 2022. The federal expenditures were misstated as follows: See Schedule of Findings and Questioned Costs. Identification as a Repeat Finding: Partial Repeat Finding of Corewell Health East 2021-001. Recommendation: Management should assess its internal controls over the identification of federal expenditures to ensure the Schedule is complete. Views of Responsible Officials: The enhanced Schedule process and controls implemented by Corewell Health East in 2023 will be reviewed. The misstated amounts of the R&D Cluster occurred as a result of the timing of posted expenses during the first month of the merger of Spectrum Health and Beaumont Health in February 2022. This was a one-time occurrence and we do not anticipate that this will be an issue in future years. In addition, the successful implementation and transition to Workday, a new Corporate financial management system, has improved award setup functionality that enables improved differentiation of awards, identifying which need to be included on the annual Schedule of Expenditures of Federal Awards and those that should be excluded. The understatement related to FEMA was a one-time occurrence related to the clarification of guidelines on the inclusion of a new Category Z FEMA obligation in 2022 on the SEFA. This has been corrected in 2023. The overstatement related to PRF was due to an improper inclusion of Corewell Health East funding on the Schedule and an adjustment related to the submitted amount of Corewell Health West funding on the Schedule. On the 2023 SEFA we will implement a management review and sign-off of the inputs prior to submission.
Finding 2022-001 Identification of the Federal Program: Federal Agency: U.S. Department of Health and Human Services, United States Department of Defense Assistance Listing: Various ? Research & Development (R&D) Cluster Pass-Through Grantor: Various Pass-Through Award Number: Various Pass-Through Award Period: Various Federal Agency: Department of Homeland Security Assistance Listing: 97.036 ? COVID-19 Disaster Grants ? Public Assistance (Presidentially Declared Disasters) (FEMA) Pass-Through Grantor: Michigan State Police Emergency Management and Homeland Security Division Pass-Through Award Number: 4494-DR-MI Pass-Through Award Period: 1/20/2020-7/1/2022 Federal Agency: U.S. Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA) Assistance Listing: 93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Pass-Through Award Period: 1/1/2020-12/31/2022 (Periods 3 and 4) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): 2 CFR Section 200.303 of the Uniform Guidance States the Following Regarding Internal Control: ?The 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 or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 2 CFR 200.510 requires that the ?auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended in accordance with Section 200.502.? 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: The Schedule of Expenditures of Federal Awards (the Schedule) prepared by the Corewell Health and Subsidiaries (the System) did not appropriately reflect the federal expenses incurred. The final Schedule was corrected for the differences identified. Cause: Management did not design internal controls to ensure appropriate accumulation of the data necessary to complete the Schedule. Effect or Potential Effect: Federal expenditures were inappropriately included or excluded from the Schedule. Questioned Costs: None Context: Total federal expenses included on the Schedule were $102,235,937 for the year ended December 31, 2022. Total expenses included on the final Schedule were $101,562,371 for the year ended December 31, 2022. The federal expenditures were misstated as follows: See Schedule of Findings and Questioned Costs. Identification as a Repeat Finding: Partial Repeat Finding of Corewell Health East 2021-001. Recommendation: Management should assess its internal controls over the identification of federal expenditures to ensure the Schedule is complete. Views of Responsible Officials: The enhanced Schedule process and controls implemented by Corewell Health East in 2023 will be reviewed. The misstated amounts of the R&D Cluster occurred as a result of the timing of posted expenses during the first month of the merger of Spectrum Health and Beaumont Health in February 2022. This was a one-time occurrence and we do not anticipate that this will be an issue in future years. In addition, the successful implementation and transition to Workday, a new Corporate financial management system, has improved award setup functionality that enables improved differentiation of awards, identifying which need to be included on the annual Schedule of Expenditures of Federal Awards and those that should be excluded. The understatement related to FEMA was a one-time occurrence related to the clarification of guidelines on the inclusion of a new Category Z FEMA obligation in 2022 on the SEFA. This has been corrected in 2023. The overstatement related to PRF was due to an improper inclusion of Corewell Health East funding on the Schedule and an adjustment related to the submitted amount of Corewell Health West funding on the Schedule. On the 2023 SEFA we will implement a management review and sign-off of the inputs prior to submission.
Finding 2022-001 Identification of the Federal Program: Federal Agency: U.S. Department of Health and Human Services, United States Department of Defense Assistance Listing: Various ? Research & Development (R&D) Cluster Pass-Through Grantor: Various Pass-Through Award Number: Various Pass-Through Award Period: Various Federal Agency: Department of Homeland Security Assistance Listing: 97.036 ? COVID-19 Disaster Grants ? Public Assistance (Presidentially Declared Disasters) (FEMA) Pass-Through Grantor: Michigan State Police Emergency Management and Homeland Security Division Pass-Through Award Number: 4494-DR-MI Pass-Through Award Period: 1/20/2020-7/1/2022 Federal Agency: U.S. Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA) Assistance Listing: 93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Pass-Through Award Period: 1/1/2020-12/31/2022 (Periods 3 and 4) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): 2 CFR Section 200.303 of the Uniform Guidance States the Following Regarding Internal Control: ?The 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 or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? 2 CFR 200.510 requires that the ?auditee must also prepare a Schedule of Expenditures of Federal Awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended in accordance with Section 200.502.? 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: The Schedule of Expenditures of Federal Awards (the Schedule) prepared by the Corewell Health and Subsidiaries (the System) did not appropriately reflect the federal expenses incurred. The final Schedule was corrected for the differences identified. Cause: Management did not design internal controls to ensure appropriate accumulation of the data necessary to complete the Schedule. Effect or Potential Effect: Federal expenditures were inappropriately included or excluded from the Schedule. Questioned Costs: None Context: Total federal expenses included on the Schedule were $102,235,937 for the year ended December 31, 2022. Total expenses included on the final Schedule were $101,562,371 for the year ended December 31, 2022. The federal expenditures were misstated as follows: See Schedule of Findings and Questioned Costs. Identification as a Repeat Finding: Partial Repeat Finding of Corewell Health East 2021-001. Recommendation: Management should assess its internal controls over the identification of federal expenditures to ensure the Schedule is complete. Views of Responsible Officials: The enhanced Schedule process and controls implemented by Corewell Health East in 2023 will be reviewed. The misstated amounts of the R&D Cluster occurred as a result of the timing of posted expenses during the first month of the merger of Spectrum Health and Beaumont Health in February 2022. This was a one-time occurrence and we do not anticipate that this will be an issue in future years. In addition, the successful implementation and transition to Workday, a new Corporate financial management system, has improved award setup functionality that enables improved differentiation of awards, identifying which need to be included on the annual Schedule of Expenditures of Federal Awards and those that should be excluded. The understatement related to FEMA was a one-time occurrence related to the clarification of guidelines on the inclusion of a new Category Z FEMA obligation in 2022 on the SEFA. This has been corrected in 2023. The overstatement related to PRF was due to an improper inclusion of Corewell Health East funding on the Schedule and an adjustment related to the submitted amount of Corewell Health West funding on the Schedule. On the 2023 SEFA we will implement a management review and sign-off of the inputs prior to submission.
2022-002 Internal Control over Compliance and Compliance with Reporting (Preparation of the Schedule of Expenditures of Federal Awards) Information on the Federal Program: United States Department of State Assistance Listing Number: 19.706 Assistance Listing Name: Partnership for Regional East Africa Counterterrorism Award Numbers: Direct Award Numbers Award Period SLMAQM20CA2264 September 28, 2020 through March 29, 2024 SLMAQM20GR2364 September 28, 2020 through September 30, 2024 Criteria: CFR Section ?200.510(b) states in part: ?The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section ?200.502 Basis for determining Federal awards expended.? The schedule must provide total Federal awards expended for each individual Federal program. In accordance with ?200.302 Financial Management, a non-federal entity?s financial management systems, including records documenting compliance with federal statutes, regulations, and the terms and conditions of the federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the federal statutes, regulations, and the terms and conditions of the federal award. The financial management system of each non-federal entity must provide for the following: (1) Identification, in its accounts, of all federal awards received and expended and the federal programs under which they were received. (2) Accurate, current, and complete disclosure of the financial results of each federal award or program in accordance with the reporting requirements set forth in ?200.327 Financial Reporting and ?200.328 Monitoring and Reporting Program Performance. (3) Records that identify adequately the source and application of funds for federally-funded activities. (4) Effective control over, and accountability for, all funds, property, and other assets. Condition: The internal controls established for the review and approval of the SEFA to ensure its completeness and accuracy did not operate as designed. During our testing of management?s preparation of the SEFA, BDO identified two awards whose assistance listing number was changed by the federal entity in award amendments issued prior to December 31, 2022. Management failed to update the assistance listing number for the awards within the SEFA to address the award modifications. Questioned Costs: None. Context: The nature of these findings is detailed in the condition section above. Cause: The internal controls established for the review and approval of the SEFA to ensure its completeness and accuracy did not fully operate as designed. The Organization did not adequately review award modifications for changes to existing awards. Effect: The SEFA initially provided to BDO resulted in incorrect major program selection as prescribed under the Unform Guidance. During the review of the award agreements, BDO identified the assistance listing numbers for the two awards had been modified. This issue resulted in a different major program selection once the SEFA was updated to reflect the correct assistance listing numbers. Repeat Finding: This finding is not a repeat finding from prior year. Recommendation: We recommend management to continue to focus on training for both preparer and reviewers of the SEFA to ensure the documented policies and procedures can be performed as prescribed to comply with Section ?200.510(b). This will ensure that the SEFA provides all relevant information as proscribed.
2022-002 Internal Control over Compliance and Compliance with Reporting (Preparation of the Schedule of Expenditures of Federal Awards) Information on the Federal Program: United States Department of State Assistance Listing Number: 19.706 Assistance Listing Name: Partnership for Regional East Africa Counterterrorism Award Numbers: Direct Award Numbers Award Period SLMAQM20CA2264 September 28, 2020 through March 29, 2024 SLMAQM20GR2364 September 28, 2020 through September 30, 2024 Criteria: CFR Section ?200.510(b) states in part: ?The auditee must also prepare a schedule of expenditures of Federal awards for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with CFR Section ?200.502 Basis for determining Federal awards expended.? The schedule must provide total Federal awards expended for each individual Federal program. In accordance with ?200.302 Financial Management, a non-federal entity?s financial management systems, including records documenting compliance with federal statutes, regulations, and the terms and conditions of the federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the federal statutes, regulations, and the terms and conditions of the federal award. The financial management system of each non-federal entity must provide for the following: (1) Identification, in its accounts, of all federal awards received and expended and the federal programs under which they were received. (2) Accurate, current, and complete disclosure of the financial results of each federal award or program in accordance with the reporting requirements set forth in ?200.327 Financial Reporting and ?200.328 Monitoring and Reporting Program Performance. (3) Records that identify adequately the source and application of funds for federally-funded activities. (4) Effective control over, and accountability for, all funds, property, and other assets. Condition: The internal controls established for the review and approval of the SEFA to ensure its completeness and accuracy did not operate as designed. During our testing of management?s preparation of the SEFA, BDO identified two awards whose assistance listing number was changed by the federal entity in award amendments issued prior to December 31, 2022. Management failed to update the assistance listing number for the awards within the SEFA to address the award modifications. Questioned Costs: None. Context: The nature of these findings is detailed in the condition section above. Cause: The internal controls established for the review and approval of the SEFA to ensure its completeness and accuracy did not fully operate as designed. The Organization did not adequately review award modifications for changes to existing awards. Effect: The SEFA initially provided to BDO resulted in incorrect major program selection as prescribed under the Unform Guidance. During the review of the award agreements, BDO identified the assistance listing numbers for the two awards had been modified. This issue resulted in a different major program selection once the SEFA was updated to reflect the correct assistance listing numbers. Repeat Finding: This finding is not a repeat finding from prior year. Recommendation: We recommend management to continue to focus on training for both preparer and reviewers of the SEFA to ensure the documented policies and procedures can be performed as prescribed to comply with Section ?200.510(b). This will ensure that the SEFA provides all relevant information as proscribed.
Item 2022-001 ?Schedule of Expenditures of Federal Awards (SEFA) Reporting Awarding Agency: U.S. Department of Housing and Urban Development Federal Program: 14.228 ? COVID-19 Community Development Block Grants/State?s Program and Non-Entitlement Grants in Hawaii Federal Award Identification Number: MSC221029-CV Grant Period: June 2022 to July 2023 Criteria: 2 CFR 200.510(b) requires the auditee to prepare a SEFA that must contain all federal awards expended during the period. Additionally, 2 CFR 200.514(a) states audits must cover the entire operations of the auditee based on the audits prepared and filed with the government, and that the financial statements and schedule of expenditures of Federal awards must be for the same audit period. Condition: We determined a federal award under SEMI Foundation with current period expenditures of $240,245 was improperly excluded from the auditee prepared SEFA. Cause: The financial statements of the Group are consolidated and include SEMI Foundation. As a result, the SEFA should also include SEMI Foundation?s federal expenditures. The Group maintains a system of controls designed to flag federal awards, but the award was mistakenly excluded from the SEFA because management did not initially believe the federal award was subject to audit in the current period on a stand-alone basis for SEMI Foundation. Current period federal expenditures for SEMI Foundation were below the audit threshold, but the SEFA should have included federal expenditures of both SEMI and SEMI Foundation. Effect: The SEFA was incomplete and impacted federal audit applicability determinations as well as the auditors? major program determination. Questioned Cost: None Context: The improperly excluded expenditures were only applicable to 1 out of 4 federal awards reported on the SEFA, and represented approximately 2 percent of total reported federal expenditures for the year ended December 31, 2022. Repeat Finding: No Recommendation: We recommend for management to implement processes to ensure the SEFA includes all federal expenditures for entities covered in its consolidated financial statements, which is currently SEMI and SEMI Foundation. Views of Responsible Official: SEMI concurs with this finding and will evaluate current period expenditures of federal awards on a consolidated basis going forward.
Section III ? Federal Award Findings and Questioned Costs 2022-001 Internal Control over Compliance and Compliance with Reporting - Preparation of the Schedule of Expenditures of Federal Awards Information on the Major Federal Program ? General Services Administration Assistance Listing Number: 39.RD Assistance Listing Name: Advisory & Assistance Services Criteria - The Uniform Guidance in 2 CFR ?200.510 (b) states in part: ?The auditee must also prepare a schedule of expenditures of Federal awards (SEFA) for the period covered by the auditee?s financial statements which must include the total Federal awards expended as determined in accordance with CFR ?200.502 Basis for determining Federal awards expended.? Condition - Certain contract expenditures related to the Advisory & Assistance Services award with General Services Administration (GSA) were incorrectly reported in the initial SEFA. The total federal expenditures initially reported in the SEFA for this award totaled $3,719,891. However, based on testing by the auditors, contract expenditures totaling $3,119,210 were determined to not qualify for SEFA presentation based on CFR Section ?200.502 due to a certain task within the award being firm fixed price. Cause ? One task of the Advisory & Assistance Services award was incorrectly labeled as cost-reimbursable with the Organization?s accounting system. This error resulted in the Organization not following its policies and procedures in place to ensure compliance with the requirements regarding the preparation of the SEFA. Effect or Potential Effect - Failure to comply with the reporting requirements of the Uniform Guidance related to the preparation of the SEFA could result in expenses from Federal awards being inaccurately reported. Questioned Costs - None. Context - This is a condition identified based upon our review of the Organization?s compliance with specified requirements required based on CFR ?200.502. The prevalence of these findings is detailed in the condition section above. Repeat finding ? This is not a repeat finding. Recommendation ? We recommend that the Organization implement policies and procedures to ensure that Federal expenditures reported on the SEFA are properly included based on underlying Federal and award requirements. Views of Responsible Officials - Management agrees with the finding. The inclusion of the contract task was an oversight as the project type was mislabeled in the accounting system. Riverside will implement an additional review of projects created in the accounting system to ensure the reliance of the information to identify only the amount of Federal awards that are required to be reported under CFR ?200.502. Additionally, the one task of the Advisory & Assistance Services award that was the cause of the issue has been corrected within the accounting system.
Finding No. 2022-002: Incomplete Schedule of Expenditures of Federal Awards?Material Weakness and Material Noncompliance U.S Department of State (19.518) Overseas Refugee Assistance Programs for Western Hemisphere passed through from Asylum Access Criteria: 2 CFR Part 200.510 (b) requires that the Organization must prepare a Schedule of Expenditures of Federal Awards (SEFA) for the period covered by the auditee's financial statements which must include the total Federal awards expended as determined in accordance with 2 CFR Part 200.502. In a proper system of internal controls, the Organization is required to have procedures in place that correctly identify federal grants which are required to follow the compliance requirements of 2 CFR Part 200. Cause: The Organization did not properly identify a grant under Assistance Listing Number (ALN) 19.518 as being required to follow the requirements of 2 CFR Part 200 and, as a result, the initial SEFA omitted expenditures received under this grant. Condition: During our audit, we identified a grant under ALN 19.518 that is required to comply with the applicable requirements of 2 CFR Part 200 and thus should have been included in the SEFA. Effect: The Organization did not properly identify the applicability of 2 CFR Part 200 and thus a grant was improperly omitted from the initial SEFA. Once this grant was properly included, the Organization exceeded $750,000 in qualifying federal expenditures thus meeting the requirement for a Uniform Guidance audit to be required. Questioned costs: None Context: The Organization did not have a proper set of internal controls in place to appropriately identify the applicability of 2 CFR Part 200 to all federal awards. Repeat Finding?: No Recommendation: We recommend that management implement policies and procedures to evaluate all grants received to identify federal funding. Views of responsible officials: The Organization agrees with the finding. See corrective action plan.
Finding 2022-006: Federal Financial Reporting Requirements (Significant Deficiency) Information on the Federal Program: U.S. Department of State ALN 19.040 Criteria or Specific Requirement: Code of Federal Regulations (CFR) Section 200.303(b) requires non-federal entities to establish and maintain effective internal control over federal awards that provide reasonable assurance that the non-federal entity is managing federal awards in compliance with federal statutes, regulations, and terms and conditions of the federal award. CFR Section 200.502(a) states that the determination of when a federal award is expended should be based on when the activity related to the federal award occurs. CFR Section 200.510 states that the auditee must prepare a schedule of expenditures of federal awards for the period covered by the auditee's financial statements which must include the total federal awards expended as determined in accordance with CFR Section 200.502. Condition: The schedule of expenditures of federal awards for the year ended December 31, 2022, did not originally include indirect costs totaling $43,632. Questioned Costs: None Cause: FCE's management prepared the schedule of expenditures of federal awards using only direct costs. However, FCE had applied the 10-percent de minimis indirect cost rate when submitting its financial reports. Effect or Potential Effect: The exclusion of indirect costs caused inaccurate amounts to be reported in the SEFA at the start of the audit. This could have caused an inaccurate major program determination. Recommendation: FCE should implement a process for preparing the SEFA that includes comparing amounts reported in the SEFA to amounts included in financial reports of expenditures that are submitted to federal agencies.
Finding 2022-002: SEFA Preparation Agency U.S. Department of Treasury pass-through from City of Alexandria ALN 21.027 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number 55-547-8853 Criteria In accordance with 2 CFR 200.508(b), the auditee is required to prepare appropriate financial statements, including the schedule of expenditures of Federal awards (SEFA) in accordance with ?200.510. Condition and Context During our audit, we identified a conditional contribution that ACT had recorded as revenue upon receipt of the advanced funds and before the applicable barrier to recognition had been satisfied. In addition, the full amount of advanced funds was presented on the schedule of expenditures of SEFA. As a result, net assets without donor restrictions were overstated in the financial statements and expenditures were overstated on the SEFA. Cause Controls and processes were not effectively designed to ensure conditional contributions are properly recorded within the general ledger and that the SEFA is complete and accurate. Effect Net assets without donor restrictions and expenses on the SEFA were overstated by $44,999 at December 31, 2022. Repeat Finding No Recommendation We recommend management review policies and procedures over contributions received to ensure timely and effective review for any barriers to recognition and over preparation of the SEFA to ensure completeness and accuracy of the SEFA. Views of Responsible Officials of the Auditee Management agrees with the finding. See corrective action plan. Questioned Cost None.
Finding 2022-002: SEFA Preparation Agency U.S. Department of Treasury pass-through from City of Alexandria ALN 21.027 Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number 55-547-8853 Criteria In accordance with 2 CFR 200.508(b), the auditee is required to prepare appropriate financial statements, including the schedule of expenditures of Federal awards (SEFA) in accordance with ?200.510. Condition and Context During our audit, we identified a conditional contribution that ACT had recorded as revenue upon receipt of the advanced funds and before the applicable barrier to recognition had been satisfied. In addition, the full amount of advanced funds was presented on the schedule of expenditures of SEFA. As a result, net assets without donor restrictions were overstated in the financial statements and expenditures were overstated on the SEFA. Cause Controls and processes were not effectively designed to ensure conditional contributions are properly recorded within the general ledger and that the SEFA is complete and accurate. Effect Net assets without donor restrictions and expenses on the SEFA were overstated by $44,999 at December 31, 2022. Repeat Finding No Recommendation We recommend management review policies and procedures over contributions received to ensure timely and effective review for any barriers to recognition and over preparation of the SEFA to ensure completeness and accuracy of the SEFA. Views of Responsible Officials of the Auditee Management agrees with the finding. See corrective action plan. Questioned Cost None.