FAC Explorer

Finding 410382 (2022-004)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-01-29
Audit: 311964
Organization: Washington County Hospital (IL)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The Hospital lacks a proper internal control system to prepare an accurate Schedule of Expenditures of Federal Awards.
  • Impacted Requirements: Compliance with federal financial reporting standards is at risk due to inadequate controls.
  • Recommended Follow-Up: Management should enhance awareness of financial reporting requirements and strengthen internal controls related to the Schedule.

Finding Text

2022-004 Department of Health and Human ServicesFederal Financial Assistance Listing #93.498COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural DistributionApplicable Federal Award Number and Year ? Period 1 TIN #376020408Department of Health and Human ServicesFederal Financial Assistance Listing #93.155COVID-19 Rural Health Research CentersPreparation of Schedule of Expenditures of Federal AwardsMaterial Weakness in Internal Control Over Compliance - OtherCriteria: Proper controls over financial reporting include the ability to prepare the Schedule of Expenditures of Federal Awards (Schedule) and accompanying notes to the Schedule.Condition: The Organization does not have an internal control system designed to provide for a complete and accurate Schedule being audited. We were requested to draft the Schedule.Cause: Auditor assistance with preparation of the Schedule is not unusual as the Schedule has unique and specialized requirements and preparation is only required when the Hospital meets a specified threshold of federal expenditures.Effect: There is a reasonable possibility that the Hospital would not be able to draft the Schedule that is correct without the assistance of the auditors.Questioned Costs: None reported.Context: Sampling was not used.Repeat Finding from Prior Years: NoRecommendation: While we recognize that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to the Hospital?s Schedule and the internal controls that impact financial reporting.Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Finding 2022-004Federal Agency Name: Department of Health and Human ServicesProgram Name: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural DistributionFederal Financial Assistance Listing #93.498Federal Agency Name: Department of Health and Human ServicesProgram Name: COVID-19 Rural Health Research CentersFederal Financial Assistance Listing #93.155Compliance Requirement: Preparation of Schedule of Expenditures of Federal Awards - OtherFinding Summary: The Organization does not have an internal control system designed to provide for a complete and accurate Schedule being audited. The auditors were requested to draft the Schedule.Responsible Individuals: Jennifer Venable, CFOCorrective Action Plan: It is not cost effective to have an internal control system designed to provide for the Schedule of Expenditures of Federal Awards. We requested that our auditors, Eide Bailly LLP, prepared the Schedule. We have designated a member of management to review the drafted Schedule, and we have reviewed with and agree with the documentation proposed.Anticipated Completion Date: Ongoing

Categories

Reporting Material Weakness

Other Findings in this Audit

  • 410383 2022-005
    Material Weakness
  • 410384 2022-005
    Material Weakness
  • 410385 2022-006
    Material Weakness
  • 410386 2022-004
    Material Weakness
  • 410387 2022-007
    Significant Deficiency
  • 986824 2022-004
    Material Weakness
  • 986825 2022-005
    Material Weakness
  • 986826 2022-005
    Material Weakness
  • 986827 2022-006
    Material Weakness
  • 986828 2022-004
    Material Weakness
  • 986829 2022-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $3.82M
93.155 Rural Health Research Centers $256,978
93.301 Small Rural Hospital Improvement Grant Program $10,833
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $7,500