Finding 1173693 (2023-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2026-02-16
Audit: 387400
Auditor: D & CO LLP

AI Summary

  • Core Issue: The System submitted an inaccurate Period 4 Provider Relief Fund report due to an error in expense input, overstating supplies by $1,090,751.
  • Impacted Requirements: Accurate financial reporting is required for compliance with the U.S. Department of Health and Human Services.
  • Recommended Follow-Up: Update policies for federal grant reporting to ensure complete and accurate information; new procedures are set to take effect on November 1, 2024.

Finding Text

COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number 93.498 U.S. Department of Health and Human Services Condition - The System is required to prepare and submit the Period 4 Provider Relief Fund report to the U.S. Department of Health and Human Services. This report is to be prepared using accurate financial information and submitted by the deadline Context - The Period 4 Provider Relief Fund report was tested. An error in the input of expenses caused incorrect reporting of supplies expense in one quarter that resulted in supplies being overstated by $1,090,751. After correcting the error, there is sufficient expenses to cover amounts received and as such, there are no questioned costs. Questioned Costs - None Cause - Internal controls over compliance were not in place to ensure the System properly input expenses in their report. Effect - Expenses were not accurately reported. Recommendation - Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Views of Responsible Officials and Planned Corrective Actions - The System implemented enhanced financial reporting procedures effective November 1, 2024. These procedures include the use of more detailed reports with sub-categories of expenses rather than reliance solely on the Authority’s summarized income statement when aggregating data.

Corrective Action Plan

Coryell County Memorial Hospital Authority implemented enhanced financial reporting procedures effective November 1, 2024. These procedures include the use of more detailed reports with sub-categories of expenses rather than reliance solely on the Authority’s summarized income statement when aggregating data. Although corrective action was implemented prior to issuance of the audit report, the finding is reported because the condition existed during the audit period. Management believes these procedures have been operating effectively since implementation and will prevent recurrence.

Categories

Reporting Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $30.41M
93.498 PROVIDER RELIEF FUND AND AMERICAN RESCUE PLAN (ARP) RURAL DISTRIBUTION $4.15M