Finding 498782 (2023-101)

-
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2024-09-27
Audit: 321492
Organization: Covenant Health, Inc. (MA)

AI Summary

  • Issue: Employee wages were incorrectly charged to the grant after termination, leading to inaccurate costs.
  • Impacted Requirement: Management must ensure only allowable costs are charged under the grant.
  • Recommended Follow-Up: Management should verify employee costs in the grant worksheet for accuracy before reimbursement requests.

Finding Text

Federal Agency: Department of Health and Human Services. Award Name: American Rescue Plan Act Funding. Program Year: January 1, 2023 – December 31, 2023. Assistance Listing Number: 93.527. Criteria: Management was responsible for only charging allowable costs under the grant. Condition: During compliance testing, it was identified that an employee's wages were being charged to the grant after the employee was terminated. Context: Costs charged to the grant were inaccurate. Cause: Management did not remove the terminated employee from the grant expense calculation. Effect: As a result, amounts charged to the program were overstated by $30,884. Recommendation: Management should review the grant cost worksheet to ensure accuracy of employees prior to submitting for reimbursement. Views of Responsible Officials: Management acknowledges the finding. Management noted there was turnover in fiscal year 2023 which led to lack of some reviews. Controls have been put in place to ensure all worksheets are reviewed for accuracy by the CFO prior to requesting drawdown amount.

Corrective Action Plan

Condition: During compliance testing, it was identified that an employee's wages were being charged to the grant after the employee was terminated. Corrective Action Taken or Planned: Management noted there was turnover in fiscal year 2023 which led to lack of some reviews. Controls have been put in place to ensure all worksheets are viewed for accuracy by the CFO prior to requesting drawdown amount. Name(s) of Contact Person(s) Responsible for Corrective Action Coleen Elias, Chief Executive Officer, Community Clinical Services. Anticipated Completion Date: Controls have been implemented as of the date of the audit report.

Categories

Questioned Costs Cash Management Allowable Costs / Cost Principles

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $1.13M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $946,710
10.225 Community Food Projects $400,000
84.063 Federal Pell Grant Program $165,328
97.008 Non-Profit Security Program $102,088
93.211 Rural Telemedicine Grants $70,048
16.588 Violence Against Women Formula Grants $49,126
97.024 Emergency Food and Shelter National Board Program $26,000
93.268 Immunization Cooperative Agreements $22,968
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $7,388
84.425 Education Stabilization Fund $1,188