Finding 499362 (2023-001)

Significant Deficiency Repeat Finding

Requirement

Questioned Costs

Year

2023

Accepted

2024-09-30

Audit: 322223

Organization: Wheeling Hospital, Inc. (WV)

Auditor: Forvis Mazars LLP

AI Summary

Core Issue: The System lacks controls to ensure written consent from HUD is obtained before new debt or lease arrangements.
Impacted Requirements: Compliance with the Uniform Guidance, which mandates internal controls for obtaining necessary approvals.
Recommended Follow-Up: Management should implement effective controls to secure written consent from HUD prior to any new financial commitments.

Finding Text

2023-001 Special Tests 14.128 Mortgage Insurance Hospitals U.S. Department of Housing and Urban Development Significant Deficiency Criteria: The Uniform Guidance requires appropriate internal controls over compliance for each direct and material compliance requirement. Proper controls should be established to ensure written consent from HUD prior to incurring new debt or lease arrangements is obtained. Condition: The System did not have a control process established to ensure written consent was obtained. Effect: The System did not maintain written consent from HUD prior to obtaining new lease arrangements. Cause: Lack of effectively designed and implemented controls around obtaining written consent from HUD regarding new debt or lease arrangements. Questioned Costs: None. Context: The new lease arrangements were tested and there were no approvals from HUD provided during that testing. Identification of Prior Year Finding: 2022-002 Recommendation: Management should establish effective controls over compliance to ensure the written consent is obtained prior to incurring new debt or lease arrangements. Management Response: See corrective action plan.

Corrective Action Plan

Finding 2023-001- Special Tests Contact Person: William Bane Management Response: Management acknowledges that there were not sufficient controls in place prior to September 28, 2023, to ensure written consent from HUD prior to incurring new debt or lease arrangements. The three lease arrangements in question were all entered prior to the controls put in place on September 28, 2023. Current Management had previously established effective controls to ensure written consent is obtained prior to incurring any new debt or lease arrangements.

Other Findings in this Audit

1075804 2023-001

Significant Deficiency Repeat

Programs in Audit

ALN	Program Name	Expenditures
14.128	Mortgage Insurance_hospitals	$41.36M
93.111	Adolescent Family Life Research Grant	$134,424