Finding Text
Finding 2022-002 ? Material weakness over amounts reported on the Schedule of Expenditures of Federal Awards (SEFA) Identification of the federal program: Assistance Listing Number 93.461: ? COVID-19 ? HRSA COVID-19 Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund ? U.S. Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA) ? Federal award identification number ? Various ? Federal award year ?October 1, 2021 through September 30, 2022 Criteria or specific requirement: 2 CFR Section 200.303 of the Uniform Guidance states the following regarding internal control: ?The non-Federal entity must: (a) Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).? Condition: The preliminary SEFA expenditures for the HRSA COVID-19 Claims Reimbursement for the Uninsured program incorrectly included claims reimbursements which were later refunded to HRSA, did not appropriately cut off transactions based on date of service for the year ended September 30, 2022, and incorrectly excluded HRSA COVID-19 claims reimbursements received by Champlain Valley Physicians Hospital. Cause: Management did not have effective internal controls in place to ensure accurate reporting of the payments received for the HRSA COVID-19 Claims Reimbursement for the Uninsured program. Effect or potential effect: The payments were incorrected reported in the preliminary SEFA for the year ended September 30, 2022. Questioned costs: None. Context: A preliminary version of the SEFA prepared by management included expenditures for the HRSA COVID-19 Claims Reimbursement for the Uninsured program of $524,543. After commencement of the Uniform Guidance audit procedures and resolution of the issues noted above, adjustments of ($201,253) were made to correct the SEFA expenditures to $323,290. Identification as a repeat finding, if applicable: No. Recommendation: Management should reassess its internal controls over reporting of the payments received for the HRSA COVID-19 Claims Reimbursement for the Uninsured program. Views of responsible individuals: Management agrees with finding as noted above. Management notes that this program is complete, and expenditures will not be incurred nor included on the SEFA in future years. However, management acknowledges the need for complete and accurate reporting on the SEFA. The Network Grants Management Finance team is expanding to work toward centralization of grant tracking. Management has budgeted for an additional FTE within the GMF team in FY23 to engage in this work to centralize grant tracking, which will continue to enhance our controls to ensure completeness and accuracy of the consolidated Network Schedule of Expenditures of Federal Awards.