Finding 953745 (2023-004)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2024-03-14
Audit: 295111
Organization: Floyd County Medical Center (IA)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The Hospital claimed expenses for services scheduled after the funding period, indicating a lack of effective internal controls.
  • Impacted Requirements: Compliance with 2 CFR 200.303(a) is necessary to ensure proper management of federal awards.
  • Recommended Follow-Up: The Hospital should strengthen internal control policies to verify that all claimed expenditures align with grant terms.

Finding Text

Department of Health and Human Services Federal Financial Assistance Listing #93.498 COVID‐19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year – Period 4 TIN #420868216 Activities Allowed or Unallowed and Allowable Costs/Cost Principles 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 Hospital claimed expenses in the HHS special report for Period 4 that were related to services to be performed after the period of availability. Cause: The Hospital did not have an internal control process in place to ensure that all expenditures claimed met the terms and conditions of the federal award. Effect: Without an improved internal control process there is a possibility that ineligible expenditures may be claimed under the program. Questioned Costs: None over the $25,000 threshold. Context: A nonstatistical sample of 65 items ($592,145) from a total population exceeding 250 items ($1,708,935) were tested. Repeat Finding from Prior Years: No Recommendation: We recommend the Hospital enhance internal control policies to ensure that the federal expenditures meet the terms and conditions of the grant. Views of Responsible Officials: Management agrees with the finding.

Categories

Allowable Costs / Cost Principles Eligibility Significant Deficiency

Other Findings in this Audit

  • 377303 2023-004
    Significant Deficiency
  • 377304 2023-005
    Significant Deficiency Repeat
  • 377305 2023-006
    Significant Deficiency
  • 953746 2023-005
    Significant Deficiency Repeat
  • 953747 2023-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $1.71M
93.301 Small Rural Hospital Improvement Grant Program $254,631
93.697 Covid-19 Testing for Rural Health Clinics $100,000