Finding 1155513 (2024-101)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-09-26
Audit: 367793
Organization: Covenant Health, Inc. (MA)

AI Summary

  • Core Issue: The Schedule of Expenditures of Federal Awards was found to be incomplete and inaccurate during the audit.
  • Impacted Requirements: Management is responsible for ensuring the Schedule reconciles fully with the general ledger.
  • Recommended Follow-Up: Management should establish better processes and controls to guarantee the accuracy and completeness of future submissions.

Finding Text

Completeness of the Schedule of Expenditures of Federal Awards - Federal Agency: Department of Health and Human Services. Award Name: Health Resources and Services Administration: Community Project Funding/Congressionally Directed Spending – Construction. Program Year: January 1, 2024 – December 31, 2024. Assistance Listing Number: 93.493. Criteria: Management is responsible for preparing a complete and accurate Schedule of Expenditures of Federal Awards. Condition: During compliance testing, it was determined that the Schedule of Expenditures of Federal Awards provided to us to begin our audit was not complete and accurate. Context: Management was unable to fully reconcile the Schedule of Expenditures of Federal Awards to the general ledger. Cause: The information contained in the Schedule of Expenditures of Federal Awards was not accurate. Effect: As a result of the condition, management was unable to fully reconcile the Schedule of Expenditures of Federal Awards to the general ledger. Recommendation: In the future, management should ensure it implements appropriate processes and controls to ensure the Schedule of Expenditures of Federal Awards contains complete and accurate data. Views of Responsible Officials: Management acknowledges the finding and will implement appropriate processes and controls to ensure the Schedule of Expenditures of Federal Awards contains complete and accurate data.

Corrective Action Plan

Completeness of the Schedule of Expenditures of Federal Awards - Federal Agency: Department of Health and Human Services. Award Name: Health Resources and Services Administration: Community Project Funding/Congressionally Directed Spending – Construction. Program Ye ar: January 1, 2024 – December 31, 2024. Assistance Listing Number: 93.493. Criteria: Management is responsible for preparing a complete and accurate Schedule of Expenditures of Federal Awards. Condition: During compliance testing, it was determined that the Schedule of Expenditures of Federal Awards provided to us to begin our audit was not complete and accurate. Context: Management was unable to fully reconcile the Schedule of Expenditures of Federal Awards to the general ledger. Cause: The information contained in the Schedule of Expenditures of Federal Awards was not accurate. Effect: As a result of the condition, management was unable to fully reconcile the Schedule of Expenditures of Federal Awards to the general ledger. Recommendation: In the future, management should ensure it implements appropriate processes and controls to ensure the Schedule of Expenditures of Federal Awards contains complete and accurate data. Views of Responsible Officials: Management acknowledges the finding and will implement appropriate processes and controls to ensure the Schedule of Expenditures of Federal Awards contains complete and accurate data. Corrective Actions Taken or Planned: The System will implement appropriate processes and controls to ensure the Schedule of Expenditures of Federal Awards contains complete and accurate data. Responsible Parties: Stephen W. Forney, Senior Vice-President/Chief Financial Officer. Anticipated Completion Date: December 31, 2025.

Categories

Reporting

Programs in Audit

ALN Program Name Expenditures
93.493 Congressional Directives $5.10M
93.527 Grants for New and Expanded Services Under the Health Center Program $327,797
84.063 Federal Pell Grant Program $194,522
97.008 Non-Profit Security Program $150,000
93.268 Immunization Cooperative Agreements $147,388
97.007 Homeland Security Preparedness Technical Assistance Program $141,082
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $40,615
93.211 Telehealth Programs $19,675