Finding 1078414 (2023-006)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-10-07
Audit: 324123
Organization: Logan Health (MT)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: There was a material weakness in internal controls over compliance, leading to a major program missing from the consolidated schedule of expenditures.
  • Impacted Requirements: The lack of adequate procedures for identifying all grants resulted in incomplete reporting, violating federal guidelines.
  • Recommended Follow-Up: Management should enhance procedures and controls for tracking federal programs to ensure all grants are accurately included in the schedule.

Finding Text

2023-006 U.S. Department of Health and Human Services All grant awards and pass-through entities Federal Assistance Listing #93.391 Activities to Support State, Tribal, Local, and Territorial (STLT) Health Department Response to Public Health or Healthcare Crisis Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance – Other (Repeat of 2023-005 due to requirement of the Federal Audit Clearinghouse) Criteria – A good system of internal accounting control contemplates an adequate system for preparing the consolidated schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition – During the course of our engagement, we noted a material program missing from the Schedule that was not identified by management, until completing the subsequent period audit for the nine-months ended December 31, 2023. Cause – Management’s process for identifying all grant to be included in the Schedule did not include sufficient procedures to address completeness of the population of grants across all entities, which resulted in certain grants being missed, including a major program. Effect – This control deficiency resulted in us having to assist in the preparation of the Schedule and would have resulted in a material misstatement to the Schedule that was not prevented, or detected and corrected, by internal personnel in a timely manner. This control deficiency also resulted in a reissuance of the Federal Awards Report in accordance with the Uniform Guidance for the year ended March 31, 2023. Questioned Costs – None reported. Context/Sampling – Sampling was not used. Repeat Findings from Prior Years – No. Recommendation – We recommend that management update procedures and controls over tracking and recording of federal programs within the Schedule. Views of Responsible Officials – Management agrees with the finding.

Categories

Internal Control / Segregation of Duties Material Weakness Reporting

Other Findings in this Audit

  • 501968 2023-002
    Significant Deficiency
  • 501969 2023-003
    Material Weakness Repeat
  • 501970 2023-004
    Material Weakness Repeat
  • 501971 2023-005
    Material Weakness
  • 501972 2023-006
    Material Weakness
  • 501973 2023-006
    Material Weakness
  • 1078410 2023-002
    Significant Deficiency
  • 1078411 2023-003
    Material Weakness Repeat
  • 1078412 2023-004
    Material Weakness Repeat
  • 1078413 2023-005
    Material Weakness
  • 1078415 2023-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.498 Covid-19 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $27.13M
93.575 Child Care and Development Block Grant $619,408
93.697 Covid-19 Rural Health Clinic Covid-19 Testing and Mitigation Program $279,735
93.391 Covid-19 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $142,341
93.435 The Innovative Cardiovascular Health Program $50,000
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $49,529
10.558 Child and Adult Care Food Program $37,478
93.110 Maternal and Child Health Federal Consolidated Programs $20,510