Finding 32040 (2022-005)

-
Requirement
ABL
Questioned Costs
$1
Year
2022
Accepted
2023-05-07
Audit: 30908
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The Organization failed to submit the required special report for Period 4 by the March 31, 2023 deadline.
  • Impacted Requirements: Noncompliance with 2 CFR 200.303(a) regarding effective internal controls over federal awards.
  • Recommended Follow-Up: Implement a control process with secondary review and approval for timely report submissions to ensure compliance.

Finding Text

Department of Health and Human Services Federal Assistance Listing/CFDA #93.498 COVID-19 Provider Relief Fund and American Rescue Plan Applicable Federal Award Number and Year ? Period 4 TIN #390819992 Activities Allowed or Unallowed and Allowable Costs/Cost Principles and Reporting Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Organization is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Condition: The Organization?s special report required to be submitted to the Department of Health and Human Services for Period 4 TIN #390819992 was not filed by the required due date of March 31, 2023. Cause: The Organization did not have an internal control process in place to ensure the report was submitted to the Department of Health and Human Services for Period 4 timely. Effect: The Organization is not in compliance with the programs reporting requirements. Questioned Costs: $95,395. Context: The Period 4 Department of Health and Human Services special report was not filed. Repeat Finding from Prior Years: No Recommendation: We recommend the Organization implement a control process which includes a secondary review and approval of the required reports to be submitted to the federal agency be documented. Views of Responsible Officials: Management agrees with the finding. We will follow our policy of ?Review of Reports Filed with Federal Agencies? as a control over reporting and compliance. While we attempted to file our report prior to the deadline multiple times, we first identified internal communication problems and then IT connectivity problems each time we attempted our submission and were unable to resolve by the deadline. Following the deadline, we were successful in submitting our Request to Report Late (RRL) Form on April 25th prior to its deadline of April 28, 2023.

Corrective Action Plan

Cognizant or Oversight Agency for Audit U.S. Department of Health and Human Services COVID-19 Provider Relief Fund and Federal Assistance Listing/CFDA #93.498 American Rescue Plan Period 4 TIN #390819992 Findings Relating to Federal Awards and Questioned Costs Finding 2022-005 Activities Allowed or Unallowed and Allowable Costs/Cost Principles and Reporting Noncompliance Finding Summary: The Organization?s special report required to be submitted to the Department of Health and Human Services for Period 4 TIN #390819992 was not filed by the required due date of March 31, 2023. Responsible Individuals: Charles Roeder, Vice President Finance/CFO Corrective Action Plan: The CFO requested the special report to be reopened. If the Department of Health and Human Services approves reopening the report, the CFO will prepare the Organization?s special report which will be reviewed by the CEO of the Organization prior to submission. The Review of Reports Filed with Federal Agencies policy will be followed, and formal approval will be documented and retained to support the amounts reported and included in the federal report. Anticipated Completion Date: September 30, 2023

Categories

Questioned Costs Allowable Costs / Cost Principles Reporting

Other Findings in this Audit

  • 32039 2022-004
    Significant Deficiency
  • 608481 2022-004
    Significant Deficiency
  • 608482 2022-005
    -

Programs in Audit

ALN Program Name Expenditures
14.128 Mortgage Insurance_hospitals $20.25M
93.155 Rural Health Research Centers $126,913
93.498 Provider Relief Fund $95,395