Finding 47671 (2022-001)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2023-02-21

AI Summary

  • Core Issue: The Hospital lacks written procurement policies and procedures for managing federal awards, which is a significant deficiency.
  • Impacted Requirements: This affects compliance with federal regulations for tracking and using federal funds, increasing the risk of improper expenditures.
  • Recommended Follow-Up: The Hospital should formalize its existing practices into written policies that align with federal requirements for federal award management.

Finding Text

2022-001 Policies and Procedures for Federal Awards Federal Agency U.S. Department of Homeland Security U.S. Department of Treasury Federal Assistance Listing Numbers 97.036 ? Disaster Grants-Public Assistance 21.019 ? Coronavirus Relief Fund Criteria [ ] Compliance Finding [ X ] Significant Deficiency [ ] Material Weakness Recipients of federal awards should maintain written policies and procedures for the tracking and usage of federal awards. Condition The Hospital did not have written procurement policies and procedures with all of the required elements for federal awards for the year ended September 30, 2022. Context This finding appears to be a systemic problem. Cause Management is still developing and implementing internal controls as of September 30, 2022. Effect There is a risk that federal funds may be expended out of conformity with federal regulations and compliance requirements. Recommendation We recommend the Hospital write policies and procedures for the tracking and usage of federal awards that conform to federal regulations and compliance requirements. Views of responsible officials and planned corrective actions We did not have a written policy and procedure in place for fiscal year end related to the tracking and usage of federal awards. We have had in place for several years a committee that meets monthly to review grant applications, the acceptance of grant funds, and the usage of those funds and submissions, we however never put this into a formal written policy. We will be putting into a written format a policy and procedure for the tracking and usage of federal awards that reflects the work we?ve already been doing for several years in this area.

Categories

Procurement, Suspension & Debarment Material Weakness Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 47670 2022-001
    Significant Deficiency
  • 624112 2022-001
    Significant Deficiency
  • 624113 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.019 Coronavirus Relief Fund $994,737
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $831,915
10.766 Community Facilities Loans and Grants $447,325
21.027 Coronavirus State and Local Fiscal Recovery Funds $32,000
93.241 State Rural Hospital Flexibility Program $20,000
93.426 Improving the Health of Americans Through Prevention and Management of Diabetes and Heart Disease and Stroke $19,321
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $13,522
93.301 Small Rural Hospital Improvement Grant Program $11,786
93.461 Covid-19 Testing for the Uninsured $7,287