Finding 614933 (2022-008)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-24

AI Summary

  • Core Issue: The hospital struggled to complete the Schedule of Federal Expenditures (SEFA) without external help, indicating a significant internal control weakness.
  • Impacted Requirements: Management must ensure they have a reliable process and skilled personnel to complete the SEFA independently.
  • Recommended Follow-Up: Management should enhance internal controls and training to reduce reliance on external auditors for SEFA completion.

Finding Text

FINDING 2022-008 INTERNAL CONTROLS OVER COMPLETION OF SCHEDULE OF FEDERAL EXPENDITURES - MATERIAL WEAKNESS Criteria Management should have a process in place to ensure the internal completion of the Schedule of Federal Expenditures (SEFA) including all required disclosures. Conditions Management required significant assistance from the external auditors to complete the SEFA. Cause The Hospital had limited personnel with the appropriate experience levels to complete the SEFA without assistance. Effect and recommendation Management required assistance from the auditors to accurately complete the SEFA. We recommend management review its current internal controls over completion of the SEFA to ensure it can be completed with limited assistance provided by its external auditors. Views of responsible officials and planned corrective actions Management agrees with the noted finding and although we have limited personnel, we will continue to monitor and enhance our internal controls over the completion of the SEFA.

Categories

Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 38488 2022-005
    Material Weakness
  • 38489 2022-006
    Material Weakness
  • 38490 2022-007
    Material Weakness
  • 38491 2022-008
    Material Weakness
  • 614930 2022-005
    Material Weakness
  • 614931 2022-006
    Material Weakness
  • 614932 2022-007
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $702,434
93.697 Covid-19 Testing for Rural Health Clinics $100,000
93.461 Covid-19 Testing for the Uninsured $12,693
93.301 Small Rural Hospital Improvement Grant Program $6,750