Finding 1141811 (2023-001)

Identification of the Federal Program – 93.498 COVID-19 American Rescue Plan Rural Distribution Program and Provider Relief Funds Criteria – The Uniform Guidance states that the non-federal entity must: (1) 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). (§200.303). In addition, the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. (§200.512(a)). Condition – Federal awards of $3,080,876 were not included in the Schedule of Expenditures of Federal Awards and were not audited in accordance with the Uniform Guidance for the year ended June 30, 2023. The related reporting package and data collection form for the year ended June 30, 2023 were not filed by the deadline to the Federal Audit Clearinghouse. Cause – Federal awards from 93.498 COVID-19 American Rescue Plan Rural Distribution Program and Provider Relief Funds were erroneously not identified for inclusion in the Schedule of Expenditures of Federal Awards due to inadequate internal controls over the unique nature of reporting for these funds. Effect – An audit of federal awards and the reporting package and data collection form for the year ended June 30, 2023 were not completed and submitted to the Federal Audit Clearinghouse in a timely manner. Recommendations – We recommend the Hospital continue to refine policies, procedures, and internal controls, including tracking and monitoring of reporting requirements, to ensure the audit is completed and the reporting package and data collection form are electronically filed with the Federal Audit Clearinghouse within the applicable deadline. Management’s Response – Management concurs with the audit recommendation. See Management’s Corrective Action Plan.