Finding 1114712 (2024-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-03-27
Audit: 349285
Organization: Citizens Medical Center (TX)

AI Summary

  • Core Issue: The Medical Center reported inaccurate expenditure amounts in quarterly progress reports, with a discrepancy of $368,111.
  • Impacted Requirements: Compliance with the U.S. Department of the Treasury's reporting rules, which mandate accurate financial reporting on an accrual basis.
  • Recommended Follow-Up: Revise policies and procedures for federal grant reporting to ensure accuracy and completeness of financial information in reports.

Finding Text

Finding: Reporting U.S. Department of the Treasury, passed through the County of Victoria Program: COVID-19 Coronavirus State and Local Fiscal Recovery Funds – 21.027 Criteria or Specific Requirement: According to the 2021 Interim Final Rule, 2022 Final Rule, 2023 Interim Final Rule, and Obligation Interim Final Rule at 31 CFR Part 35, Subpart A, recipients of Coronavirus State and Local Fiscal Recovery Funds (SLFRF) are required to accurately report the amounts expended in their progress reports. The reported amounts should reflect the total expenditures on an accrual basis, as specified in the grant agreement and the compliance supplement. Condition: The Medical Center had discrepancies between the amounts reported in the quarterly progress reports and the actual expenditures. Specifically, the amounts reported in the progress reports did not accurately reflect the total expenditures incurred during the reporting period by $368,111. Questioned Costs: None Context: We tested the four reports submitted during the reporting period to determine whether each report was completed timely and accurately and performed in compliance with the grant agreement and U.S. Department of the Treasury guidelines. Of the four reports tested, one report contained discrepancies between the amounts reported in the quarterly progress reports and the actual expenditures. Specifically, the Medical Center reported the "Total ARPA SLFRF Funds Expended to Date" for both Progress Reports 8 and 9 as $219,505. However, Progress Report 9's actual "Total ARPA SLFRF Funds Expended to Date" totaled $587,615.46, resulting in a variance of $368,110.85 on the progress report. The error was identified by management in the following quarter, and Report 9 was subsequently amended by the Medical Center to report the corrected amount. Effect: The Medical Center submitted a required report with a material error in reported information. Federal oversight agencies, including the U.S. Department of the Treasury and the County of Victoria, depend on accurate reporting to ensure proper spending of the award and compliance with payment terms and conditions. Cause: The Medical Center did not have adequate controls or procedures in place to identify the applicable reporting requirements and ensure the required reports for federal awards include all activity of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with the Uniform Guidance. Identification as a Repeat Finding: Not applicable Recommendation: We recommend policies and procedures over federal grant reporting be modified to ensure required reports are properly and accurately completed using the correct financial information. In addition, we recommend all underlying supporting calculations be reviewed for completeness and accuracy. Views of Responsible Officials and Planned Corrective Actions: The Medical Center agrees with the finding. See separate report for planned corrective action.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 538270 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $988,543