Finding 635960 (2022-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-28
Audit: 51835
Organization: Aultman Health Foundation (OH)

AI Summary

  • Core Issue: Internal controls over compliance for Provider Relief Funds were ineffective, leading to inaccurate reporting of lost revenue.
  • Impacted Requirements: Funds must only cover health care-related expenses or lost revenues directly tied to coronavirus, without overlap from other sources.
  • Recommended Follow-Up: Implement additional review procedures for revenue reporting before submission to ensure accuracy and compliance.

Finding Text

Federal Agency: US Department of Treasury Federal Program Name: Provider Relief Fund Assistance Listing Number: 93.498 Award Period: Year ended December 31, 2022 Type of Finding: ? Significant Deficiency in Internal Controls over Compliance ? Other Matters Criteria: The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. These funds may not be used to reimburse expenses of losses that have been reimbursed from other sources or that other sources are obligated to reimburse. Condition: The Organization's internal controls over reporting were not effective. Questioned Costs: $-0- Context: During the audit, it was determined that one out of five reports selected for testing included quarterly revenue amounts that did not agree to the underlying revenue information. This resulted in one report understating lost revenue by approximately $550,000. Cause: The revenue information used to populate the reports was not reviewed prior to submission. Effect: Reported lost revenue was calculated incorrectly. After using the underlying revenue information to calculate lost revenue, there was sufficient lost revenue to utilize all the Provider Relief Funds reported. Recommendation: We recommend management implement additional procedures to review reported revenue before submitting reports. Views of Responsible Officials and Planned Corrective Actions: Aultman Health Foundation was able to correct the Period 5 Reporting for Aultman Specialty Hospital. Going forward, Aultman Corporate Finance Leadership will review data submissions, comparing to both internal reporting as well as Trial Balance to account for potential differences.

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 59517 2022-001
    Significant Deficiency
  • 59518 2022-002
    Significant Deficiency
  • 635959 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $16.16M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $3.17M
84.268 Federal Direct Student Loans $1.52M
84.063 Federal Pell Grant Program $420,516
84.033 Federal Work-Study Program $20,731
84.007 Federal Supplemental Educational Opportunity Grants $15,101