Finding 385322 (2023-001)

Assistance Listing, Federal Agency, and Program Name - 21.027, COVID-19: Coronavirus State and Local Fiscal Recovery Funds Federal Award Identification Number and Year - N/A, 2023 Pass-through Entity - Michigan Hospital Association Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per review of the grant agreement, Hurley Medical Center was required to complete Expense Reporting via a specific schedule. This report was required to be submitted by the 30th of the month following the period end date. Condition - The Medical Center's controls for reporting submissions did not identify that it had a reporting requirement deadline, and the report was submitted late. Questioned Costs - None Context - Expense reporting was required to be submitted by a specific schedule, which for period end date, May 31, 2023 was June 30, 2023. The Medical Center completed this however, this was not completed by the required deadline and was submitted late on July 3, 2023. Cause and Effect - Appropriate review of the grant agreement was not completed to identify the reporting requirements needed, which led to expense reporting not being reported timely. As a result, the expense reporting was not submitted by the required date of June 30th. Recommendation - We recommend Hurley Medical Center implement controls, including levels of review, to ensure expense reports are submitted within the required time frame for grant agreement. Views of Responsible Officials and Corrective Action Plan - The grant administrator and accountant will review the contract for reporting requirements and add submission dates to work calendars with reminders.