Finding Text
2022-001: Schedule of Expenditures of Federal Awards Federal Agency: All Federal Program: All Assistance Listing Number: All Federal Award Number: All Federal Award Year: Fiscal year 2021 Pass-through Entity: All Criteria OMB Uniform Guidance 2 CFR 200.510(b) requires that an auditee prepare a schedule of expenditures of Federal awards for the period covered by the auditee's financial statements which must include the total Federal awards expended. Further, it requires that the auditee provide the Federal awards expended for each individual Federal Program. Condition The 2021 schedule of expenditures of Federal awards (the ?Schedule?) prepared by management improperly included the expenditures of State awards of $16,195,894 and $2,648,682 for the Children?s Health Insurance Program passed through from the Pennsylvania Department of Human Services and New York State Department of Health, respectively. Cause Management performs a reconciliation between the Schedule and the consolidated financial statements, however, the reconciliation performed did not effectively ensure that the Schedule was accurate inclusive only Federal awards. Effect The 2021 Schedule was overstated by $18,844,576, which represents the expenditures of State awards improperly included in the Schedule. There was no impact on our 2021 audit scoping for the improper inclusion of these amounts Recommendation Management of Highmark Health should update its controls over the preparation and review of the Schedule with sufficient precision to ensure all Federal awards are reported on the Schedule accurately. Management?s Views and Corrective Action Plan Refer to Management?s Views and Corrective Action Plan at the end of the report.