Finding 559259 (2024-002)

Significant Deficiency

Requirement

Questioned Costs

Year

2024

Accepted

2025-05-05

Audit: 355477

Organization: Kansas Hospital Association (KS)

Auditor: Wendling Noe Nelson & Johnson LLC

AI Summary

Core Issue: Funds were disbursed to a hospital without a signed subaward agreement.
Impacted Requirements: Eligibility compliance was not met as per the terms and conditions for award recipients.
Recommended Follow-Up: Strengthen controls to ensure funds are only disbursed to entities with signed agreements.

Finding Text

Identification: 93.889 United States Department of Health and Human Services, National Bioterrorism Hospital Preparedness Program; Significant Deficiency; Eligibility Compliance Requirement. Criteria: Eligible award recipients include hospitals that have signed and agreed to the terms and conditions of the subaward. Condition: The Association disbursed funds to a recipient who did not have a signed subaward. The funds were returned to the Association upon discovery of this oversight. Cause: The Association's controls in place did not prevent funds from being disbursed to entity's that did not have a signed subaward agreement. Effect: The Association's controls were inadequate. Questioned costs: None

Corrective Action Plan

Identification: 93.889 United States Department of Health and Human Services, COVID-19 National Bioterrorism Hospital Preparedness Program, Significant Deficiency; Eligibility Requirement. Corrective Action Plan: The Association will implement controls related to future awards so that federal funding is only provided to eligible recipients once a signed subaward agreement is on file. Anticipated completion date: The Association anticipates completion in 2025.

Other Findings in this Audit

559258 2024-001

Material Weakness
1135700 2024-001

Material Weakness
1135701 2024-002

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
93.889	National Bioterrorism Hospital Preparedness Program	$1.06M