Finding 964004 (2023-002)

Condition – The Corporation did not report $2,000,000 of CSLFRF grant expenditures received by Saint Agnes Medical Center Fresno (“Fresno”) in the consolidated SEFA for the year ended June 30, 2022. This resulted in an understatement of CSLFRF expenditures on the Corporation’s SEFA for the year ended June 30, 2022. This issue was discussed with the County of Fresno, the pass-through granting agency for this program, who requested the omitted CSLFRF expenditures be tested and included in the Corporation’s SEFA for the year ended June 30, 2023. Criteria – According to § 200.510(b) of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, “The auditee must also prepare a schedule of expenditures of Federal awards 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.” Cause – The Fresno accounting department reported the CSLFRF grant to the Trinity Health Financial Reporting team incorrectly which resulted in the Fresno CSLFRF grant not being included in ALN 21.027, which was a major program for the year ended June 30, 2022. Effect – The Corporation’s SEFA for the year ended June 30, 2022 was understated by $2,000,000. Consequences for failure to comply with grant conditions may include a reduction of overall award and/or a restriction or reduction in future awards. Questioned costs – None Context – The Corporation did not report $2,000,000 of CSLFRF funds on its prior year SEFA. Repeat Finding from Prior Year – No Recommendation – The Corporation should institute additional policies and procedures to ensure grant expenditures reported by all locations are appropriately and completely included in the consolidated SEFA.