FAC Explorer

Finding 519000 (2022-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2025-01-13
Audit: 337494
Organization: The Health Care Authority of the City of Huntsville (AL)
Auditor: Warren Averett

AI Summary

  • Core Issue: The Authority missed the deadline for submitting its audit report.
  • Impacted Requirements: This failure violates 2 CFR Part 200.303(a) and Section 200.512 of the Uniform Guidance.
  • Recommended Follow-Up: The Authority should ensure timely completion and submission of audits and reports moving forward.

Finding Text

Criteria: 2 CFR Part 200.303(a) states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the federal award. Section 200.512 of the Uniform Guidance states that the audit, the data collection form, and the reporting package must be submitted within 30 calendar days after the auditee receives the auditor’sreport or nine months after the end of the audit period (whichever is earlier). Condition and Context: The Authority did not complete its audit report prior to the required deadline. Cause and Effect: Due to a delay in the compiling of records related to the audit, the Authority was not in compliance with the reporting requirements. Questioned costs: None Repeat finding: No Recommendation: We recommend that the Authority complete its audits and submit the required reports by the deadline. Views of responsible officials of the auditee: Management agrees with the finding and the auditors’ recommendation. See Management’s full response in the Corrective Action Plan at the end of this report.

Corrective Action Plan

The Authority strives always to meet all regulatory deadlines. This particular deadline for the Single Audit was complicated by the unprecedented nature of the COVID-19 pandemic (which, for many organizations such as ours, triggered a Single Audit requirement for the first time, and overwhelmed the audit profession with a surge of new Single Audits to conduct that did not exist previously). In the Authority’s case, the situation was further complicated by the fact that we were changing external audit firms moving into this particular reporting period. By the time the incumbent audit firm had issued its Single Audit report for Fiscal 2021, and the successor audit firm could therefore begin the Fiscal 2022 Single Audit, it was already beyond the reporting deadline of March 31, 2023. The Authority will have the same finding for the Fiscal 2023 Single Audit, for the same reason. We are hoping to be able to work successfully with the successor audit firm in order to file our Single Audit for Fiscal 2024 timely on or before March 31, 2025 and also have timely filings thereafter.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 519001 2022-002
    Significant Deficiency
  • 519002 2022-002
    Significant Deficiency
  • 519003 2022-002
    Significant Deficiency
  • 519004 2022-002
    Significant Deficiency
  • 519005 2022-002
    Significant Deficiency
  • 519006 2022-002
    Significant Deficiency
  • 519007 2022-002
    Significant Deficiency
  • 519008 2022-002
    Significant Deficiency
  • 519009 2022-002
    Significant Deficiency
  • 519010 2022-002
    Significant Deficiency
  • 519011 2022-002
    Significant Deficiency
  • 1095442 2022-002
    Significant Deficiency
  • 1095443 2022-002
    Significant Deficiency
  • 1095444 2022-002
    Significant Deficiency
  • 1095445 2022-002
    Significant Deficiency
  • 1095446 2022-002
    Significant Deficiency
  • 1095447 2022-002
    Significant Deficiency
  • 1095448 2022-002
    Significant Deficiency
  • 1095449 2022-002
    Significant Deficiency
  • 1095450 2022-002
    Significant Deficiency
  • 1095451 2022-002
    Significant Deficiency
  • 1095452 2022-002
    Significant Deficiency
  • 1095453 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $25.63M
93.461 Hrsa Covid-19 Claims Reimbursement for the Uninsured Program and the Covid-19 Coverage Assistance Fund $7.26M
21.027 Coronavirus State and Local Fiscal Recovery Funds $3.67M
93.155 Rural Health Research Centers $262,925
93.360 Biomedical Advanced Research and Development Authority (barda), Biodefense Medical Countermeasure Development $98,000
32.006 Covid-19 Telehealth Program $57,167
93.241 State Rural Health Flexibility Program $31,988
93.301 Small Rural Hospital Improvement Grant Program $11,915
93.889 National Bioterrorism Hospital Preparedness Program $4,179
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $1,848