Finding Text
2022-002 – Completeness and accuracy of the Schedule of Expenditures of Federal Awards- Significant Deficiency Cluster: Not applicable Federal Granting Agency: Department of Homeland Security and Emergency Services Award Name: COVID-19 – Disaster Grants- Public Assistance (Presidentially Declared Disasters) Pass-Through from New York State Department of Homeland Security and Emergency Services Assistance Listing #: 97.036 Assistance Listing Title: COVID-19 - Disaster Grants- Public Assistance (Presidentially Declared Disasters) Pass-Through from New York State Department of Homeland Security and Emergency Services Award Year: January 1, 2022- December 31, 2022 Criteria 2 CFR 200.510 Financial statements requires auditees to 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 2 CFR 200.502. The information presented should be consistent with the accounting records and other federal guidance. Condition FEMA funds obligated in 2022 for eligible expenditures expended in prior periods totaling $33,715,590 were excluded from the 2022 consolidated financial statements and Statement of Expenditures of Federal Awards (“SEFA”). Management has revised the consolidated financial statements as of and for the year ended December 31, 2022 and included this amount in the SEFA for the year ended December 31, 2022 (Refer to Note 1 and Note 10 in the accompanying consolidated financial statements and Note 2 and Note 7 in the accompanying SEFA). This error did not impact the major program selection for testing in 2022. Cause The status of the review and approval process by FEMA and New York State Department of Homeland Security and Emergency Services and requirement to record FEMA funds in the consolidated financial statements and SEFA when obligated by FEMA was not interpreted correctly by management. Effect A SEFA that is not complete and accurate could impact the scoping of an entity’s major programs and result in incomplete information being provided to the federal government. Questioned Costs None noted. Recommendation We recommend the Medical Center perform a reconciliation of FEMA project applications reported in the FEMA portal to the consolidated financial statements and SEFA to ensure all FEMA project funds obligated and expended are reported in the proper period. Management’s Views and Corrective Action Plan Management's views and corrective action plan is included at the end of this report after the summary schedule of prior audit findings and status.