Finding 635268 (2022-003)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-10-01

AI Summary

  • Core Issue: The Hospital lacks a proper internal control system for preparing the Schedule of Expenditures of Federal Awards, leading to potential inaccuracies.
  • Impacted Requirements: Financial reporting standards require accurate preparation of the Schedule, which the Hospital struggles to meet without auditor assistance.
  • Recommended Follow-Up: Management should enhance awareness of financial reporting requirements and strengthen internal controls related to the Schedule preparation.

Finding Text

U.S. Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Preparation of Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control Over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the 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 of expenditures of federal awards being audited. We were requested to draft the Schedule. Cause: Management has requested that the auditor assist with the preparation of the Schedule. Auditor assistance with preparation of the Schedule is not unusual as the Schedule has unique and specialized requirements and preparation is only required when the Hospital meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Hospital would not be able to draft the Schedule that is correct without the assistance of the auditors. Questioned Costs: None reported. White Mountain Regional Medical Center Schedule of Findings and Questioned Costs Year Ended December 31, 2022 Context: No sampling was utilized. Repeat Finding from Prior Years: Yes Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to the Hospital?s schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.

Categories

Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 58826 2022-003
    Significant Deficiency Repeat
  • 58827 2022-005
    Significant Deficiency
  • 58828 2022-003
    Significant Deficiency Repeat
  • 58829 2022-004
    Material Weakness
  • 58830 2022-006
    Significant Deficiency
  • 635269 2022-005
    Significant Deficiency
  • 635270 2022-003
    Significant Deficiency Repeat
  • 635271 2022-004
    Material Weakness
  • 635272 2022-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $680,500
10.766 Community Facilities Loans and Grants $407,215
93.301 Small Rural Hospital Improvement Grant Program $284,442