Finding 39872 (2022-001)

Material Weakness Repeat Finding
Requirement
ABL
Questioned Costs
-
Year
2022
Accepted
2022-12-12
Audit: 47950
Auditor: Kpmg LLP

AI Summary

  • Core Issue: Inadequate internal control procedures led to inaccurate reporting of Provider Relief Funds.
  • Impacted Requirements: Compliance with 2 CFR 200.303 regarding effective internal controls over federal awards.
  • Recommended Follow-Up: Implement stronger review controls and documentation processes for accurate financial reporting.

Finding Text

Per 2 CFR 200.303, guidance requires non-Federal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include establishing and maintaining adequate controls over the accuracy of financial reports required for the program. Condition and Context In preparing to report for Period 2 and Period 3 Provider Relief Funds (PRF) on the portal, management had not established adequate internal control procedures and documentation to ensure the accuracy of lost revenues reported in accordance with federal regulations. Cause and Effect/Potential Effect Management did not have appropriate and sufficient review controls in place during the fiscal year to ensure the accuracy of reporting of Period 2 and Period 3 Provider Relief Funds on the portal.

Corrective Action Plan

Froedtert Health, Inc. and Affiliates Audit in Accordance with Uniform Guidance: Corrective Action Plan Year Ended June 30, 2022 Finding Number: 2022-001 Agency: Department of Health and Human Services Contact Person: David Dirksmeyer, Director of Corporate Finance Corrective Action: Froedtert Health agrees with the finding. Prospectively, Froedtert Health will ensure that all controls relating to review of Provider Relief Fund portal submissions are effectively designed to ensure compliance with regulations for federal funding and are operating effectively. Date of Completion: September 30, 2023

Categories

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 616314 2022-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.498 Covid-19 Provider Relief Fund $23.63M