FAC Explorer

Finding 391081 (2023-002)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-04-01
Audit: 301691
Organization: Avera Health (SD)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: There is a material weakness in internal controls over compliance related to the preparation of the consolidated schedule of expenditures for federal awards.
  • Impacted Requirements: Proper financial reporting controls were insufficient to prevent or detect misstatements in the Schedule for COVID-19 relief funds.
  • Recommended Follow-up: Strengthen controls around the preparation of the Schedule to ensure accurate reporting in the future.

Finding Text

Department of Health and Human Services Federal Financial Assistance Listing #93.498 COVID-19 Provider Relief Funds and American Rescue Plan (ARP) Rural Distribution Preparation of the Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance - Other Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (the Schedule) and the accompanying notes to the Schedule. Condition: Management prepared the Schedule for the year ended June 30, 2023. During the audit process, changes were proposed to increase the amount reported related to the COVID-19 Provider Relief Funds and American Rescue Plan (ARP) Rural Distribution program. Cause: Controls that were in place did not detect a misstatement to the Schedule. Effect: There is a reasonable possibility that misstatements to the Schedule may not be prevented and detected in a timely fashion. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Year: No Recommendation: We recommend the Organization review and strengthen the controls surrounding the preparation of the Schedule. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Department of Health and Human Services Federal Financial Assistance Listing #93.498 COVID-19 Provider Relief Funds and American Rescue Plan (ARP) Rural Distribution Preparation of the Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance - Other Finding Summary: Management prepared the Schedule for the year ended June 30, 2023. During the audit process, changes were proposed to increase the amount reported related to the COVID-19 Provider Relief Funds and American Rescue Plan (ARP) Rural Distribution programs. Responsible Individuals: Jamie Schaefer, John Neth Corrective Action Plan: The Organization will review and strengthen the controls surrounding the preparation of the Consolidated Schedule of Expenditures of Federal Awards. There are no questioned costs related to this finding. The Organization is hiring additional financial staff in which the position duties are focused on reporting with an emphasis on the Consolidated Schedule of Expenditures of Federal Awards specifically. Additionally, the Organization is in the process of implementing a new enterprise resource planning software which will include a grant module. The Organization is working with the software staff to develop an automated Consolidated Schedule of Expenditures of Federal Awards that will be imbedded in the software module. Anticipated Completion Date: October 1, 2024

Categories

Reporting Material Weakness

Other Findings in this Audit

  • 391082 2023-003
    Significant Deficiency
  • 391083 2023-004
    Significant Deficiency
  • 391084 2023-005
    Significant Deficiency
  • 391085 2023-005
    Significant Deficiency
  • 391086 2023-005
    Significant Deficiency
  • 391087 2023-005
    Significant Deficiency
  • 391088 2023-005
    Significant Deficiency
  • 391089 2023-005
    Significant Deficiency
  • 391090 2023-005
    Significant Deficiency
  • 391091 2023-005
    Significant Deficiency
  • 391092 2023-005
    Significant Deficiency
  • 391093 2023-005
    Significant Deficiency
  • 391094 2023-005
    Significant Deficiency
  • 391095 2023-005
    Significant Deficiency
  • 391096 2023-005
    Significant Deficiency
  • 391097 2023-005
    Significant Deficiency
  • 391098 2023-005
    Significant Deficiency
  • 391099 2023-006
    Significant Deficiency
  • 967523 2023-002
    Material Weakness
  • 967524 2023-003
    Significant Deficiency
  • 967525 2023-004
    Significant Deficiency
  • 967526 2023-005
    Significant Deficiency
  • 967527 2023-005
    Significant Deficiency
  • 967528 2023-005
    Significant Deficiency
  • 967529 2023-005
    Significant Deficiency
  • 967530 2023-005
    Significant Deficiency
  • 967531 2023-005
    Significant Deficiency
  • 967532 2023-005
    Significant Deficiency
  • 967533 2023-005
    Significant Deficiency
  • 967534 2023-005
    Significant Deficiency
  • 967535 2023-005
    Significant Deficiency
  • 967536 2023-005
    Significant Deficiency
  • 967537 2023-005
    Significant Deficiency
  • 967538 2023-005
    Significant Deficiency
  • 967539 2023-005
    Significant Deficiency
  • 967540 2023-005
    Significant Deficiency
  • 967541 2023-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $39.98M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $9.39M
93.697 Covid-19 Testing for Rural Health Clinics $2.10M
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $1.40M
16.582 Crime Victim Assistance/discretionary Grants $1.28M
10.855 Distance Learning and Telemedicine Loans and Grants $860,254
93.279 Drug Abuse and Addiction Research Programs $498,726
93.393 Cancer Cause and Prevention Research $435,993
93.884 Grants for Primary Care Training and Enhancement $416,480
20.509 Formula Grants for Rural Areas and Tribal Transit Program $302,469
93.155 Rural Health Research Centers $293,589
16.589 Rural Domestic Violence, Dating Violence, Sexual Assault, and Stalking Assistance Program $245,812
93.211 Telehealth Programs $199,755
93.838 Lung Diseases Research $198,636
21.027 Coronavirus State and Local Fiscal Recovery Funds $185,714
93.395 Cancer Treatment Research $154,575
93.301 Small Rural Hospital Improvement Grant Program $117,099
93.359 Nurse Education, Practice Quality and Retention Grants $117,065
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $93,480
93.865 Child Health and Human Development Extramural Research $58,504
93.136 Injury Prevention and Control Research and State and Community Based Programs $57,316
93.461 Covid-19 Testing for the Uninsured $50,423
16.575 Crime Victim Assistance $47,000
10.331 Food Insecurity Nutrition Incentive Grants Program $46,943
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $29,447
93.837 Cardiovascular Diseases Research $25,417
93.268 Immunization Cooperative Agreements $13,790
93.994 Maternal and Child Health Services Block Grant to the States $10,195
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $8,146
93.310 Trans-Nih Research Support $7,042
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $5,137
45.025 Promotion of the Arts_partnership Agreements $1,600
93.800 Organized Approaches to Increase Colorectal Cancer Screening $661
93.069 Public Health Emergency Preparedness $462