Finding 404909 (2021-005)

Finding 2021.005 Program Name/CFDA Title: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Federal Assistance Listing Number: 93.498 Federal Agency: U.S. Department of Health and Human Services Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting Condition: The Hospital did not meet its requirements related to timely reporting and filing of financial information, including audited financial statements, for the year ended September 30, 2021. Criteria: All programs which require compliance with Uniform Guidance audits require that a financial statement audit and related Uniform Guidance audits, and their related required reports and findings be filed with the federal audit clearinghouse not later than nine months following the end of a fiscal year, unless an extension has been granted.Context: During the audit, it was determined that because the Hospital had not completed several years of audits and was working on catching up these audits in 2024, the Uniform Guidance audit and its related financial statement audit for the year ended September 30, 2021, were not filed timely in 2022 and remained outstanding until being filed along with the financial statement and Uniform Guidance audit for the year ended September 30, 2023 in June of 2024. The Hospital also has additional financial statement findings related to internal controls and a disclaimer of opinion on the financial statement audit for the year ended September 30, 2021 which are also related to these delayed filings. Cause: Management oversight. Effect: The Hospital is not in compliance with federal regulations and guidelines surrounding the required reporting and audits related the Provider Relief Funds it received and expended in 2021. Recommendation and Current Status: We recommend that management continue to work to catch up required audits and related reporting. Management has completed required financial statement and Uniform Guidance audits which were required through September 30, 2023 in June 2024 and is working to correct financial statement findings toward achieving an unmodified opinion on the financial statements in the future, assuming all proper support is gathered and maintained, as well as improved procedures and policies.