Finding Text
Criteria – The Hospital is required to establish and maintain effective internal control over federal awards that provides reasonable assurance the entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards.
Condition – Costs relating to the United States Department of Homeland Security program were not reduced for financial assistance received from another source, such as Medicare cost reimbursement.
Context – The errors had no impact on the amount of federal awards the Hospital was allowed to retain due to the excess of related costs over the amount of federal awards received.
Cause – The Hospital inadvertently did not reduce costs by their Medicare cost reimbursement, which represents financial assistance received from another source.
Effect – The cost amounts were inaccurate.
Recommendation – We recommend that management review procedures and change as necessary to ensure costs are reduced by financial assistance received from another source.
Views of Responsible Officials and Planned Corrective Actions – Management agrees with this finding. The policies are being reviewed and new procedures put in place as needed to ensure proper compliance.