FAC Explorer

Finding 563798 (2022-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2025-06-04
Audit: 358011
Organization: Taylor Regional Hospital, Inc. (GA)
Auditor: Draffin & Tucker LLP

AI Summary

  • Core Issue: The Hospital lacks an effective internal control system, resulting in two federal grants totaling $571,332 being omitted from the 2022 Schedule of expenditures.
  • Impacted Requirements: The Hospital failed to meet the criteria for accurate financial reporting as required by the U.S. Department of Health and Human Services.
  • Recommended Follow-Up: Implement stronger internal controls and review processes to ensure all federal grants are accurately included in future financial reports.

Finding Text

2022-001 - Material Weakness Federal agency: U.S. Department of Health and Human Services (HHS) Federal program title: COVID-19 Testing for Rural Health Clinic (RHCCTM) Assistance Listing No.: 93.697 Criteria: Proper controls over financial reporting include preparation of a complete and accurate schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition: The Hospital does not have an internal control system designed to provide for a complete and accurate Schedule. The Hospital did not include two federal grants in the 2022 Schedule. These grants totaled $571,332. Cause: The Hospital did not have adequate internal controls to ensure all grants were identified that needed to be included on the Schedule. Effect: The Hospital did not properly reflect all grants in its 2022 Schedule. Questioned costs: None reported. Recommendation: We recommend the Hospital design and implement controls, including levels of review, to ensure accuracy and completion of the Hospital’s Schedule. Views of responsible officials of the auditee: Management agrees with the finding. See management’s corrective action plan.

Corrective Action Plan

Taylor Regional Hospital, Inc. respectfully submits the following corrective action plan for the year ended March 31, 2022. The finding from the March 31, 2022 Schedule of Findings and Questioned Costs is discussed below. The finding is numbered consistently with the numbers assigned in the schedule. FEDERAL AWARD PROGRAM AUDIT FINDING Material Weakness (2022-001) Recommendation: We recommend the Hospital design and implement controls, including levels of review, to ensure accuracy and completion of the Hospital's Schedule. Planned Corrective Action: The 2022 Schedule was restated to reflect the two federal grants that were originally omitted. The Hospital will design and implement controls over financial reporting to ensure all grants are properly included on the Schedule in accordance with reporting requirements. Jonathon L. Green Chief Executive Officer

Categories

Reporting Material Weakness

Other Findings in this Audit

  • 1140240 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $599,002
93.697 Covid-19 Testing for Rural Health Clinics $567,332
93.461 Covid-19 Testing for the Uninsured $462,764
93.155 Rural Health Research Centers $125,429
21.019 Coronavirus Relief Fund $60,648
93.301 Small Rural Hospital Improvement Grant Program $4,000