Finding 1074894 (2023-003)

FINDING 2023-003 COMPLETION AND TIMELY FILING OF SINGLE AUDIT REPORTS Federal programs Federal Assistance Listing Number 10.766 U.S. Department of Agriculture (USDA) Direct Award, Community Facilities Loans and Grants Federal Assistance Listing Number 93.498 U.S. Department of Health and Human Services COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Material Weakness Criteria The Hospital is required to have its financial statement and compliance audits completed and filed with the Federal Audit Clearinghouse nine months after the end of the audit period. Condition The Hospital’s financial statement and compliance audits for the June 30, 2023 reporting period were not filed within the required timeline. Cause The Hospital implemented a new accounting and electronic health record (EHR) system in May of 2023 and incurred significant issues with the implementation resulting in both the financial statement and compliance audits being significantly delayed. Effect The Hospital was unable to meet the required nine month filing deadline. Questioned costs None. Perspective/Context The majority of the implementation issues were outside of Hospital management’s control and directly related to issues associated with the accounting and EHR system vendor. Hospital management also notified various parties that the financial statement and compliance audits would be delayed due to the implementation issues. Recommendation We suggest Hospital management continue working with its accounting and EHR system vendor to resolve issues to assure timely filing requirements will be met in future periods. Views of responsible officials and planned corrective actions The financial statement and compliance audit will be filed with the Federal Audit Clearinghouse shortly after issuance.