FAC Explorer

Finding 1240394 (2025-001)

Material Weakness Repeat Finding
Requirement
AB
Questioned Costs
-
Year
2025
Accepted
2026-10-13
Audit: 414892
Organization: Wellspan Health (PA)
Auditor: KPMG LLP

AI Summary

  • Answer: The Company could not provide necessary documentation for 15 out of 60 tested non-payroll costs.
  • Trend: This indicates a potential weakness in internal controls related to cost management.
  • List: Follow up by reviewing documentation processes and ensuring compliance with cost principles.

Finding Text

For 15 out of 60 non-payroll cost samples tested, the Company was unable to produce supporting documentation to demonstrate the operating effectiveness of internal controls around activities allowed or unallowed and allowable costs/costs principles.

Corrective Action Plan

Certain non-payroll cost samples tested within the Disaster Grants – Public Assistance (Presidentially Declared Disasters) program (ALN 97.036) were not appropriately supported for the year ended June 30, 2025. Going forward, WellSpan will design and implement enhanced retention policies to ensure appropriate recordkeeping specifically related to expenditures charged to federal grants. Contact Person Responsible for Corrective Action: David Rizzuto, Senior Corporate Controller Anticipated Completion Date: October 31, 2026

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $45.39M
93.696 CERTIFIED COMMUNITY BEHAVIORAL HEALTH CLINIC EXPANSION GRANTS $1.12M
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $654,374
93.059 TRAINING IN GENERAL, PEDIATRIC, AND PUBLIC HEALTH DENTISTRY $389,593
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $374,619
93.395 CANCER TREATMENT RESEARCH $187,605
93.918 GRANTS TO PROVIDE OUTPATIENT EARLY INTERVENTION SERVICES WITH RESPECT TO HIV DISEASE $186,168
97.025 NATIONAL URBAN SEARCH AND RESCUE (US&R) RESPONSE SYSTEM $70,171
93.211 TELEHEALTH PROGRAMS $69,021
93.866 AGING RESEARCH $47,000
93.217 FAMILY PLANNING SERVICES $43,789
93.304 RACIAL AND ETHNIC APPROACHES TO COMMUNITY HEALTH $18,981
93.667 SOCIAL SERVICES BLOCK GRANT $16,088
93.307 MINORITY HEALTH AND HEALTH DISPARITIES RESEARCH $12,075
93.994 MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT TO THE STATES $4,834
93.853 EXTRAMURAL RESEARCH PROGRAMS IN THE NEUROSCIENCES AND NEUROLOGICAL DISORDERS $2,858
93.113 ENVIRONMENTAL HEALTH $1,181
93.840 TRANSLATION AND IMPLEMENTATION SCIENCE RESEARCH FOR HEART, LUNG, BLOOD DISEASES, AND SLEEP DISORDERS $1,000