Finding 1179947 (2021-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2026-03-17

AI Summary

  • Core Issue: The District missed the federal deadline for submitting the Single Audit Reporting Package, which was due by September 30, 2022.
  • Impacted Requirements: Compliance with 2 CFR 200.512, which mandates timely filing of the Data Collection Form after receiving the auditor’s report.
  • Recommended Follow-Up: Ensure audit preparations are completed promptly to meet future reporting deadlines.

Finding Text

Finding 2021-002 Program Name/CFDA Title: Provider Relief Fund Federal Assistance Listing Number: 93.498 Federal Agency: U.S. Department of Health and Human Services Type of Finding: Noncompliance, Significant Deficiency Questioned Cost: None Compliance Requirement: Reporting Condition: The federal reporting deadline for the Single Audit reporting package was September 30, 2022; however, the District did not submit its Single Audit Reporting Package by that date. Criteria: The District is required to file the Data Collection Form (SFSAC) within 30 calendar days after receipt of the auditor’s report, or nine months after year end, whichever is first as referenced in 2 CFR 200.512. Cause: As a result of the COVID-19 pandemic, financial constraints and corresponding staffing challenges, the accounting and finance team at the District was unable to complete the required single audit reporting package on a timely basis. At the same time, the accounting and finance team were faced with other administrative and operational matters requiring immediate attention to help ensure the District remained operational. The financial and staffing constraints resulted in the late submissions of the Single Audit reporting package. Effect: The District was not in compliance with federal reporting requirements and regulations. Recommendation: We recommend audit preparations are completed on a timely basis to ensure that the reporting deadline is met. View of Responsible Management agrees with the finding above. Officials:

Corrective Action Plan

The District hired a new Chief Financial Officer in 2023 and was able to catch the District up on three years of financials statements and all missing audits. The new CFO made the following changes to ensure compliance: 1. Update internal controls and monitoring. The new CFO created a Federal Funding Monitoring and Reporting Policy that specifies that responsibilities over compliance, expenditures, and reporting. 2. Implement Process Improvements. The new CFO and Accounts Payable were able to identify grant fund expenditures and work closely to make sure all future grant expenditures are identified and tracked. 3. Communicate with External Audit Team. The new CFO communicates regularly with the external audit team to ensure they are aware of the grant funds received and the type of audit that is required and coordinate audits with plenty of time to complete the audit before deadlines.

Categories

Reporting Significant Deficiency

Other Findings in this Audit

  • 1179948 2021-003
    Material Weakness Repeat
  • 1179949 2021-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.498 PROVIDER RELIEF FUND AND AMERICAN RESCUE PLAN (ARP) RURAL DISTRIBUTION $3.86M
93.461 HRSA COVID-19 CLAIMS REIMBURSEMENT FOR THE UNINSURED PROGRAM AND THE COVID-19 COVERAGE ASSISTANCE FUND $351,360
93.301 SMALL RURAL HOSPITAL IMPROVEMENT GRANT PROGRAM $10,878