FAC Explorer

Finding 1164837 (2021-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2025-12-15
Audit: 374663
Organization: Olympic Medical Center (WA)
Auditor: BAKER TILLY US LLP

AI Summary

  • Core Issue: The Medical Center missed the deadline for submitting the data collection form due to delays in preparing for the single audit.
  • Impacted Requirements: Compliance with 2 CFR 200.512, which mandates timely submission of reporting forms and maintaining effective internal controls.
  • Recommended Follow-Up: Implement a year-round review process to ensure ongoing compliance with reporting requirements.

Finding Text

Finding 2021-001 – Reporting (Significant Deficiency in Internal Control Over Compliance and Instance of Noncompliance) (See chart) Criteria – Per 2 CFR 200.512, the data collection form must be submitted within nine months after the end of the audit period. Additionally, the Medical Center is required to maintain a structure of internal controls to ensure compliance with applicable reporting requirements. Condition/Context – More time was needed to prepare for the single audit and ensure that the Schedule of Expenditures of Federal Awards (SEFA) was accurate and complete. Effect – The single audit was completed after the data collection form deadline. Cause – Factors contributing to the condition included the high volume of activity related to the new COVID-19 programs, the evolving guidance related to the programs, and the additional time needed to address compliance questions. Repeat Finding – This is not a repeat finding. Recommendation – We recommend the Medical Center develop and implement a review process throughout the year to ensure compliance with reporting requirements as outlined in Uniform Guidance, as applicable. Views of Responsible Officials – The responsible officials acknowledge the finding and concur with the recommendation. None to be reported.

Corrective Action Plan

November 10,2025 Clallam County Public Hospital District No. 2, dba Olympic Medical Center (OMC) Corrective Action Plan Year Ended December 31,202I Finding 2021-001 Responsible Official: Dennis Stillman, Interim CFO Correction Action and Timing: With the volume of COVID-19 federal programs and the related complexities associated with the evolving guidance, it was challenging to prepare the Schedule of Expenditures of Federal Awards (SEFA) and related support completely and accurately for the single audit by the required due dates. Before the COVID-19 pandemic, grant expenditures related to federal programs rarely surpassed the single audit threshold, and the single audit threshold for OMC is unlikely to be surpassed in the future. To prepare for the possibility of future federal grant awards, all applications and contracts for federal awards will require review and approval by OMC's Contracts department. All applications for federal awards will be forwarded to the Chief Financial Officer for evaluation, acceptance, and record-keeping for Schedule of Expenditure of Federal Awards, SEFA. The recordkeeping for SEFA will be for accuracy, completeness, and reconciliation with accounting records. These records will support the performance of the single audit. OMC will implement this Corrective Action Plan effective November I,2025 Stillman Interim CFO Contracts Manager Controller cc

Categories

Reporting

Other Findings in this Audit

  • 1164836 2021-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.498 COVID -19 PROVIDER RELIEF FUND AND AMERICAN RESCUE PLAN (ARP) RURAL DISTRIBUTION $13.15M
97.036 COVID-19 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $828,511
93.461 HRSA COVID-19 CLAIMS REIMBURSEMENT FOR THE UNINSURED PROGRAM AND THE COVID-19 COVERAGE ASSISTANCE FUND $396,403