FAC Explorer

Finding 58683 (2022-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2022-12-17
Audit: 55874
Organization: Moravian Home Incorporated (d/b/a Salemtowne) (NC)
Auditor: Forvis LLP

AI Summary

  • Core Issue: There is a material weakness in controls over Portal reporting, leading to inaccurate financial data.
  • Impacted Requirements: Expenditures reported on the HRSA portal were duplicated across submissions, causing overstated reimbursements and understated lost revenues.
  • Recommended Follow-Up: Implement independent reviews of data preparation schedules before submission to ensure accuracy and compliance.

Finding Text

Portal Reporting MATERIAL WEAKNESS Criteria: Controls should be in place to ensure that amounts reported on the Department of Health Resources and Services Administration (HRSA) portal (the Portal) are accurate and properly supported by accounting records. Condition: The same expenditures reported on the Portal were reported on more than one submission. Effect: Reimbursed expenditures were overstated while lost revenues reimbursed by Provider Relief Funds were understated. Cause: The individual who compiled and entered the data for Period 1 reporting left the Community shortly thereafter. A different individual compiled and entered the data for Period 2 reporting inadvertently picking up certain expenditures previously reported in Period 1. Recommendation: We recommend that management implement controls over the preparation of schedules used to input amounts into the Portal and that someone independent of compiling the data review the schedules before the amounts are submitted to HRSA. Views of responsible officials and planned corrective actions: Management agrees with this finding. Please refer to page 38 for the Corrective Action Plan.

Corrective Action Plan

Corrective Action Plan Finding 2022-001 Name of Contact Person: Tracy Biesecker Corrective Action Plan: Management will implement enhanced controls over the preparation of schedules used to input amounts into the Portal and someone independent of compiling the data review the schedules before the amounts are submitted to HRSA. Specifically, amounts reported will be compiled in a source worksheet with all necessary supporting detail. These amounts will be reviewed by a person independent of the source worksheet preparer. Amounts will be submitted to HRSA only after the preparer and independent reviewer agree to the proper classification, valuation and other criteria of the data submitted. This process will be evidenced by a preparer and reviewer signature indicating an attestation that all amounts are properly classified and valued in accordance with the terms and conditions of the PRF. Proposed Completion Date: March 31, 2023

Categories

Material Weakness Reporting

Other Findings in this Audit

  • 635125 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $961,718