Finding 1208815 (2022-004)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2026-04-24
Audit: 399700
Organization: Sheridan Community Hospital (MI)
Auditor: REDW LLC

AI Summary

  • Core Issue: The Hospital failed to submit the single audit reporting package within the required timeframe, violating Uniform Guidance 2 CFR 200.512(a.
  • Impacted Requirements: Timely reconciliation of accounting records and completion of audits are essential for compliance.
  • Recommended Follow-Up: The Hospital should enhance internal controls to ensure accurate and timely financial statements and audits moving forward.

Finding Text

Federal Program Information: Program: All Funding Agency: All Assistance Listing Number: All Criteria or Specific Requirement: The Uniform Guidance 2 CFR 200.512(a) requires the audit package and data collection form be submitted 30 days after receipt of the auditor’s report or 9 months after the end of the fiscal year, whichever comes first. Condition/Context: The Hospital’s fiscal year 2022 single audit reporting package was not submitted within nine months after the end of the audit period. Cause: The Hospital did not have appropriate internal control policies and procedures in place to ensure accounting records and financial statements were reconciled timely and the audit conducted to meet compliance requirements. Effect: The single audit reporting package was submitted after the required reporting time period. Questioned Costs: None. Auditor’s Recommendation: To ensure compliance with the Uniform Guidance, the Hospital should prepare accurate, complete and timely financial statements and ensure an audit is performed to ensure the timely submission of the single audit reporting package. Views of Responsible Officials: In FY 2020 through FY 2022, the hospital was going through a transition due to financial constraints, hence several internal operations were affected. Even though we have internal policy to schedule Annual Financial audits 90 days after close of every Fiscal year, we fell behind and for a period of two years were unable to schedule annual financial audits timely. At the time when the FY 2022 single Audit was due, we had not even completed our FY2020 Audit hence the delay. Currently, the hospital is working toward getting caught up with the annual financial audits to get back on track with our policy. We just completed FY 2023 and are working on FY 2024. We hope to be done with FY 2025 and FY 2026 in the Fall of calendar year 2026.

Corrective Action Plan

In FY 2020 through FY 2022, the hospital was going through a transition due to financial constraints, hence several internal operations were affected. Even though we have internal policy to schedule Annual Financial audits 90 days after close of every Fiscal year, we fell behind and for a period of two years were unable to schedule annual financial audits timely. At the time when the FY 2022 single Audit was due, we had not even completed our FY2020 Audit hence the delay. Currently, the hospital is working toward getting caught up with the annual financial audits to get back on track with our policy. We just completed FY 2023 and are working on FY 2024. We hope to be done with FY 2025 and FY 2026 in the Fall of calendar year 2026.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1208814 2022-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution $3.68M