Finding 504863 (2023-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-11-07
Audit: 327607

AI Summary

  • Core Issue: The System failed to submit its audit reporting package on time, breaching the Uniform Guidance requirements.
  • Impacted Requirements: The submission deadline is within 30 days of receiving auditor reports or nine months after the audit period ends.
  • Recommended Follow-Up: Improve the closing and reporting process to ensure timely completion of audit procedures and compliance with deadlines.

Finding Text

Finding # 2023-001 Significant Deficiency - Reporting Criteria Pursuant to 2 CFR 200.512(a) of the Uniform Guidance, the auditee is responsible for submitting its data collection form and reporting package, including the auditors’ reports, within the earlier of 30 days after receipt of the auditors’ reports or nine months after the end of the audit period to the Federal Audit Clearinghouse. Condition, Context, Cause and Effect The Uniform Guidance audit of the System’s federal awards for the year ended December 31, 2023, was not completed within the nine months following the period-end, and as a result, the System did not submit its Uniform Guidance audit reporting package within the required timeframe. As such, the System did not comply with the aforementioned regulatory requirement. The delay in the issuance of the single audit report for the year ended December 31, 2023, was due to staff turnover in the System’s finance department. Questioned Costs There were no questioned costs identified. Recurring Finding This finding is not a recurring item. Recommendation We recommend that the System enhance their closing and reporting process to ensure that the Uniform Guidance audit procedures are timely completed in order to meet the aforementioned regulatory reporting deadlines. Views of Responsible Officials and Planned Corrective Action Plan We concur with the findings and recommendation above. Management is in the process of implementing a formal process to ensure accounting records are maintained timely to support amounts recorded including the Uniform Guidance audit preparation and future deadlines.

Corrective Action Plan

Finding 2023-001 Reporting – Significant Deficiency in Internal Control Condition and Effect: The single audit of the Hunterdon Healthcare System’s (the System) federal awards for the year ended December 31, 2023 was not completed within the nine months following the period-end and as a result, the System did not submit its single audit reporting package within the required timeframe. As such, the System did not comply with the aforementioned regulatory requirements. View of Responsible Officials and Planned Corrective Action: The System will review the single audit compilation process to identify where automation can be better utilized to increase timing of information gathering. In addition, cross training will be instituted to enable knowledge sharing amongst various teams to mitigate delays due to staff turnover. Name of Contract Person: Mr. Herbert White Chief Financial Officer Hunterdon Healthcare System, Inc. (908) 788-6153 hwhite@hhsnj.org Completion Date: December 31, 2024 Herbert While,

Categories

Reporting Significant Deficiency

Other Findings in this Audit

  • 1081305 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $2.39M
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $1.99M
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $33,430