Finding 979799 (2023-005)

Material Weakness Repeat Finding
Requirement
ABL
Questioned Costs
-
Year
2023
Accepted
2024-06-27
Audit: 310474
Organization: Mile Bluff Medical Center, Inc. (WI)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The Medical Center lacks adequate internal controls for reviewing and approving expenditures and reports related to the COVID-19 Provider Relief Fund.
  • Impacted Requirements: Compliance with 2 CFR 200.303(a) is not met, risking ineligible claims and inaccurate reporting.
  • Recommended Follow-Up: Enhance internal control policies to ensure thorough review and approval of all financial documentation related to the federal program.

Finding Text

Department of Health and Human Services Federal 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 #390992883 Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Reporting Material Weakness 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: During our testing, there was no documentation of review and approval of the expenditure listing, lost revenue calculation, or the HHS Period 4 report. Cause: The Medical Center did not have an adequate internal control policy in place to ensure review and approval of expenditures and lost revenue claimed under the federal program, and the HHS Period 4 report was documented. Effect: Without a secondary review and approval, there is a possibility that ineligible expenditures or lost revenue may be claimed under the program and the HHS Period 4 report may not be accurately completed. Questioned Costs: None reported. Context: A nonstatistical sample of 14 expenditures was selected for testing, which accounted for $493,531 of $2,074,596 direct program expenditures. There was one lost revenue calculation, one expenditure detail and one HHS Period 4 report and all three were tested. Repeat Finding from Prior Years: Yes, finding 2021-005. Recommendation: We recommend that the Medical Center enhance internal control policies to ensure the expenditure listing, lost revenue calculation, and HHS reports are reviewed and approved to ensure that all payments are necessary, correct, meet the requirements of the federal program, and are properly recorded in the reports required to be submitted to the federal agency. Views of Responsible Officials: Management agrees with the finding.

Categories

Allowable Costs / Cost Principles Eligibility Material Weakness Reporting

Other Findings in this Audit

  • 403356 2023-004
    Material Weakness Repeat
  • 403357 2023-005
    Material Weakness Repeat
  • 403358 2023-006
    Significant Deficiency Repeat
  • 979798 2023-004
    Material Weakness Repeat
  • 979800 2023-006
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $2.07M
93.697 Covid-19 Testing for Rural Health Clinics $300,459
20.513 Enhanced Mobility of Seniors and Individuals with Disabilities $47,600
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $26,177
93.301 Small Rural Hospital Improvement Grant Program $12,444