Finding 403576 (2023-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-06-27

AI Summary

  • Core Issue: Federal funds from the Medical Assistance Program were not reported in the Schedule of Expenditures for FY2020, FY2021, and FY2022, totaling $226,664.
  • Impacted Requirements: The Schedule must comply with 2 CFR 200.510, ensuring all federal awards are accurately reported and consistent with accounting records.
  • Recommended Follow-up: Management should improve controls to ensure the Schedule is thoroughly reviewed for completeness and accuracy.

Finding Text

Section III – Federal Award Findings and Questioned Costs 2023-001 Federal Award Omitted from Schedule of Expenditures of Federal Awards Grantor: Department of Health and Human Services Award Name: Medical Assistance Program Award Year: FY2020, FY2021, FY2022 Assistance Listing Number: 93.778 Condition During the FY 2023 Uniform Guidance audit, Management identified funds from this program that were not appropriately reported for the fiscal years ended September 30, 2022, 2021, and 2020 in the amounts of $136,828, $18,921, and $71,915, respectively. Criteria 2 CFR 200.510 Financial statements require auditees to prepare a Schedule of Expenditures of Federal Awards (the “Schedule”) for the period covered by the auditee’s financial statements, which must include in the total Federal Awards expensed as determined in accordance with 2 CFR 200.502. The information presented should be consistent with the accounting records and other federal guidance. Cause The cause of the finding was due to insufficient review of the Schedule. Effect A Schedule that is not complete and accurate could impact the scoping of an entity’s major programs and result in incomplete information being provided to the federal government. There was not an impact on our major program determinations in the prior years. Questioned Cost There are no questioned costs associated with this finding. Recommendation Management should enhance the controls in place to review and verify the completeness and accuracy of the Schedule. Management’s Views and Corrective Action Plan Management’s response is included in “Management’s Views and Corrective Action Plan” included at the end of this report after the summary schedule of status of prior audit findings.

Corrective Action Plan

MANAGEMENT’S VIEWS AND CORRECTIVE ACTION PLAN Finding 2023-001 – Federal Award Omitted from Schedule of Expenditures of Federal Awards Award: Medical Assistance Program Federal Agency: Department of Health and Human Services Assistance Listing Number: 93.778 University of Alabama Health Services Foundation, P.C. Management acknowledges and agrees with the finding as presented. Dating back to FY 2020, a single grant was improperly omitted from the Schedule of Expenditures of Federal Awards (the “Schedule”). Upon identification of this omission, Management reached out to the respective pass-through entity. In June 2024, Management corresponded with the Office of Contracts and Grants at the Alabama Department of Mental Health to discuss the finding and reached an agreement that prior year reports would remain unchanged and the Schedule for the year ended September 30, 2023, would only present the current year expenditures of the grant. In June 2024, we incorporated a comprehensive review and reconciliation of all amounts recorded in a fiscal year. This captured federally sourced revenue and expenditures recorded throughout the institution and were to be reported on the Schedule. Further, funded sources identified through this reconciliation were reviewed in depth to confirm federal financial compliance requirements are being met or were corrected immediately. Education to key stakeholders also took place to spread awareness of the compliance requirements regarding federally funded sources that are to be reported on the Schedule. At the completion of each fiscal period, grants accounting, in collaboration with general accounting, will prepare a comprehensive reconciliation of grant revenue recorded throughout the organization. Grant accounting and general accounting personnel will jointly review any and all changes to grant contracts to identify payment changes. Funding sources will be reviewed in depth to confirm federal financial compliance requirements are being met.

Categories

Reporting

Other Findings in this Audit

  • 980018 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Covid-19 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $2.63M
93.959 Block Grants for Prevention and Treatment of Substance Abuse $1.05M
93.788 Opioid Str $232,396
93.778 Medical Assistance Program $49,153
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $5,737