Finding 6400 (2023-005)

Significant Deficiency Repeat Finding
Requirement
ABL
Questioned Costs
-
Year
2023
Accepted
2023-12-22
Audit: 8319
Organization: Greene County Medical Center (IA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The Medical Center inaccurately reported expenses for the COVID-19 Provider Relief Fund due to a lack of effective internal controls.
  • Impacted Requirements: Compliance with 2 CFR 200.303(a) is compromised, as there was no formal review or approval process for tracking expenditures.
  • Recommended Follow-Up: Enhance internal control policies to ensure thorough documentation and review of all financial reports before submission.

Finding Text

Department of Health and Human Services Federal Financial Assistance Listing #93.498 COVID‐19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year – Period 4 TIN #426037888 Activities Allowed or Unallowed and Allowable Costs/Cost Principles and Reporting Significant Deficiency in Internal Control Over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Medical Center included expenses in the Department of Health and Human Services (HHS) special report for Period 4 that were transcribed incorrectly or were preliminary amounts instead of final expenses which caused the HHS special report to be inaccurate. In addition, there was no evidence of formal review and approval over tracking of expenditures that were claimed for the program. In addition, there was no evidence retained that the Medical Center’s special reports submitted to the Department of Health and Human Services for Period 4 TIN #426037888 were reviewed or approved by an individual separate from the preparer prior to submission. Cause: The Medical Center did not have an internal control process in place to ensure documentation of review and approval of the tracking of expenditures claimed under the federal program and the reports submitted to the Department of Health and Human Services. Effect: The lack of adequate policies governing review and approval increases the risk that employees participating in the federal awards administration may not be able to detect and correct noncompliance in a timely manner. Questioned Costs: None over the $25,000 limit. Context: A sample of 11 ($629,403) from a population of 24 items ($806,374) were tested for activities allowed or unallowed and allowable costs/cost principles. Key line items were tested on the Period 4 HHS special report. Repeat Finding from Prior Years: Yes Recommendation: We recommend the Medical Center enhance internal control policies to ensure that formal documentation of review and approval is obtained and retained, and review is thorough enough to catch mistakes. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Finding 2023-005: Activities Allowed or Unallowed and Allowable Costs/Cost Principles and Reporting Federal Agency Name: Department of Health and Human Services Program Name: COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Federal Financial Assistance Listing Number: 93.498 Finding Summary: The Medical Center included expenses in the Department of Health and Human Services (HHS) special report for Period 4 that were transcribed incorrectly or were preliminary amounts instead of final expenses which caused the HHS special report to be inaccurate. In addition, there was no evidence of formal review and approval over tracking of expenditures that were claimed for the program. In addition, there was no evidence retained that the Medical Center's special reports submitted to the Department of Health and Human Services for Period 4 TIN #426037888 were reviewed or approved by an individual separate from the preparer prior to submission. Responsible Individuals: Mark Wall, CFO Response: Management agrees with the finding and has reviewed the operating procedures of Greene County Medical Center. Management will continue to monitor the Medical Center's operations and procedures. Furthermore, we will continually review the assignment of duties to obtain the maximum internal control possible under the circumstances. Completion Date: Ongoing

Categories

Allowable Costs / Cost Principles Reporting Significant Deficiency

Other Findings in this Audit

  • 6397 2023-004
    Significant Deficiency Repeat
  • 6398 2023-004
    Significant Deficiency Repeat
  • 6399 2023-004
    Significant Deficiency Repeat
  • 582839 2023-004
    Significant Deficiency Repeat
  • 582840 2023-004
    Significant Deficiency Repeat
  • 582841 2023-004
    Significant Deficiency Repeat
  • 582842 2023-005
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $1.00M
93.498 Provider Relief Fund $806,374
93.155 Rural Health Research Centers $218,631
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $31,760
93.268 Immunization Cooperative Agreements $7,575