Finding 958731 (2023-001)

Information of the federal program: Federal Grantor: United States Department of Housing and Urban Development Assistance Listing No.: 14.241, Housing Opportunities for Persons with AIDS Ascension Ministry Market: Illinois Pass-Through Grantor: AIDS Foundation of Chicago Federal Grantor: United States Department of Justice Assistance Listing No.: 16.560, National Institute of Justice Research, Evaluation, and Development Project Grants Ascension Ministry Market: Texas Federal Grantor: United States Department of Justice Assistance Listing No.: 16.710, Public Safety Partnership and Community Policing Grants Ascension Ministry Market: Illinois Pass-Through Grantor: The Village of Arlington Heights Police Department Federal Grantor: United States Department of the Treasury Assistance Listing No.: 21.027, COVID-19 Coronavirus State and Local Fiscal Recovery Funds Ascension Ministry Market: Maryland Pass-Through Grantor: Mayor and City Council of Baltimore, through MONSE Federal Grantor: United States Department of Health and Human Services Assistance Listing No.: 93.650, Accountable Health Communities Ascension Ministry Market: Illinois Federal Grantor: United States Department of Health and Human Services Assistance Listing No.: 93.958, Block Grants for Community Mental Health Services Ascension Ministry Market: Illinois Pass-Through Grantor: The State of Illinois Department of Human Services Federal Grantor: United States Department of Homeland Security Assistance Listing No.: 97.036, Disaster Grants – Public Assistance (Presidentially Declared Disasters) Ascension Ministry Market: Florida Pass-Through Grantor: Florida Division of Emergency ManagementFederal Grantor: United States Department of Homeland Security Assistance Listing No.: 97.039, Hazard Mitigation Grant Ascension Ministry Market: Florida Pass-Through Grantor: Florida Division of Emergency Management Criteria or specific requirement (including statutory, regulatory, or other citation): 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).” The Uniform Guidance 2 CFR section 200.510 states, “(b) Schedule of expenditures of Federal awards. The auditee must also prepare a schedule of expenditures of federal awards (SEFA) for the period covered by the auditee’s financial statements which must include the total Federal awards expended as determined in accordance with §200.502 Basis for determining Federal awards expended.” Condition: A grant with expenditures of $55,702 under Assistance Listing No. 14.241 was not included on the preliminary schedule of expenditures of federal awards (the Schedule) provided by management; the final Schedule was corrected. (Alexian Brothers-Bonaventure House, Illinois) A grant with expenditures of $204,574 under Assistance Listing No. 16.560 was not included on the preliminary Schedule provided by management; the final Schedule was corrected. (Ascension Seton, Texas) Expenditures in the amount of $89,084 under Assistance Listing No. 16.710 were improperly classified as Assistance Listing No. 93.958; the final Schedule was corrected. (Presence Behavioral Health, Illinois) A grant with expenditures of $230,108 under Assistance Listing No. 21.027 was included on the preliminary Schedule and was subsequently excluded when it was identified as a beneficiary award and not a subrecipient award; the final Schedule was corrected (Ascension Via Christi Hospitals Wichita, Inc., Kansas). A grant with expenditures of $164,195 under Assistance Listing No. 21.027 was not included on the preliminary Schedule provided by management; the final Schedule was corrected. (St. Agnes Healthcare, Inc., Maryland) Expenditures under Assistance Listing No. 93.650 were reported twice on the preliminary Schedule, resulting in overstatement of $314,551; the final Schedule was corrected. (Alexian Brothers Hospital Network, Illinois) A grant with expenditures of $232,713 under Assistance Listing No. 97.039 was misclassified as Assistance Listing No. 97.036; the final Schedule was corrected. (St. Vincent’s Health System, Florida) Cause: Ascension’s (the System) internal controls in place over the preparation of the Schedule were not sufficient to properly accumulate and accurately report all expenditures of federal awards. Effect or Potential Effect: Inaccurate or improper reporting of expenditures results in a misstated Schedule and can also potentially result in insufficient testing of the major programs or improper identification of major programs for audit purposes. Questioned costs: None. Context:The table below shows the preliminary and adjusted assistance listing on the Schedule. See table/chart in the finding. Identification as a repeat finding, if applicable: The finding is not a repeat finding from the prior year. Recommendation: Management should implement more robust internal controls to ensure the assistance listing numbers are appropriately listed on the Schedule and all federal expenditures are appropriately identified and reported on the Schedule. Views of responsible officials: The System will enhance grant management award processes by revising its onboarding procedures and add additional controls to monitor for accuracy of the core data. Management will reinforce the importance of timeliness and accuracy of the SEFA reporting totals to facilitate accurate reporting. Award amounts were changed on the SEFA reporting schedules after management’s review was executed. Management will implement preventive controls to lock down market SEFA templates after management final review.