CORRECTIVE ACTION PLAN
November 13, 2024
Frontier Health respectfully submits the following corrective action plan for the year ended June 30, 2024. Name and address of independent public accounting firm:
Brown, Edwards & Company, L.L.P. 636 Shelby Street, Suite 400
Bristol, TN 37620
Audit period: June 30, 2024
The findings from the June 30, 2024, Schedule of Findings and Questioned Costs (the "Schedule") are discussed below. The findings are numbered consistently with the number assigned in the Schedule.
FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAM AUDIT
2024-001: Opioid State Targeted Response - AL# 93.788, Unallowable Costs
Condition: Food and beverage items were charged to the grant that were unallowable.
Criteria: Only allowable costs should be charged to the grant.
Cause: Procedures in place to ensure that only allowable expenditures were charged were not followed.
Effect: The food and beverage items are subject to disallowance.
Questioned Costs: NIA
Perspective Information: One out of twenty-five items tested contained unallowable items. The amount of the unallowable costs was $59 out of a total of $7,912 dollars tested.
Repeat Finding: No
Recommendation: Frontier Health should review all grant agreements and approved budgets to ensure only allowable items are being charged to the grant.
Corrective Action: Frontier Health will request that in future contracts they be allowed to charge food/beverage expenses for meetings since they are legitimate expenses. This was corrected in September 2024. We reached out to the state rep and due to the small amount of the item we were advised to make an adjustment to back off this amount from food and beverage expense and charge it to a covered expense. This grant runs from October 1st to Sept 30th each year.
2024-002: Substance Abuse and Mental Health Services -AL# 93.243, Overcharged Grant Condition: The Impact August 2023 expenditures were overcharged to the grant. Criteria: Only allowable costs should be charged to the grant.
Cause: Procedures in place to ensure that only the correct amount of expenditures were charged
were not followed.
Effect: The overcharged amount is subject to disallowance.
Questioned Costs: NI A
Perspective Information: One month out of eleven months where expenditures were tested contained an overcharge of amounts to the grant.
Repeat Finding: No
Recommendation: Frontier Health should review all grant expenditure documents to ensure the correct amount of expenditures are being charged to the grant.
Corrective Action: Frontier Health has issued a check back to the grantor for the overcharged amount and will ensure only the correct amounts are submitted for reimbursement in the future.
If the Federal Audit Clearinghouse has questions regarding this plan, please call Allen Harris, CFO, at 423-467- 3723.
Sincerely yours,
Allen Harris
Chief Financial Officer