TRIAD HEALTH SYSYEMS INC

EIN: 208963925

UEI: CQ71GNJ374E5

Data as of August 25, 2026

TRIAD HEALTH SYSYEMS INC10 audit years4 findings1 repeat
10
Audit Years
4
Total Findings
1
Repeat Findings

FY 2022-12-31

Management decision deadline — for entities that funded this organization

The FAC accepted this audit on October 3, 2023. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by April 3, 2024 (874 days ago).

What is a management decision? →
2022-001
Reporting
MATERIAL WEAKNESSREPEAT

MATERIAL WEAKNESS Federal Agency: U.S. Department of Health and Human Services Assistance Listing Number: 93.498 – COVID-19 – Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution 2022-001: Improper Reporting of Lost Revenues on Phase 4 PRF Submission Compliance Requirement(s): Reporting Criteria: Reporting requirements stipulate that when submitting information related to lost revenues attributable to coronavirus on the Health Resources and Services Administration (“HRSA”) Provider Relief Funding reporting portal, patient service revenues must be entered on a quarterly basis from the first quarter of 2019 through the fourth quarter of 2022. Condition – Improper reporting of lost revenues on Phase 4 PRF submission: When submitting information related to Phase 4 of the Provider Relief Fund (“PRF”) program to HRSA, various quarters were not corrected from the incorrect prior year submission, resulting in an overstatement of lost revenues reported in THS’s official filing. Cause – The cause of this deficiency is due to the lack of internal controls to ensure proper reporting of lost revenues on the reporting portal. Effect – The effect is an overstatement of lost revenues reporting to HRSA on the reporting portal. Recommendation – We recommend that THS implement internal control procedures to ensure proper reporting on the HRSA reporting portal in future reporting periods. Management’s Response – We will implement internal control procedures to ensure proper reporting of lost revenues, as is required under the reporting guidelines stipulated by HRSA, in future reporting periods. We do not believe the overstatement of lost revenues resulted in an overstatement of THS’s received allowable funds to be utilized as part of the Provider Relief Fund program.

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MATERIAL WEAKNESS Federal Agency: U.S. Department of Health and Human Services Assistance Listing Number: 93.498 – COVID-19 – Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution 2022-001: Improper Reporting of Lost Revenues on Phase 4 PRF Submission Compliance Requirement(s): Reporting Criteria: Reporting requirements stipulate that when submitting information related to lost revenues attributable to coronavirus on the Health Resources and Services Administration (“HRSA”) Provider Relief Funding reporting portal, patient service revenues must be entered on a quarterly basis from the first quarter of 2019 through the fourth quarter of 2022. Condition – Improper reporting of lost revenues on Phase 4 PRF submission: When submitting information related to Phase 4 of the Provider Relief Fund (“PRF”) program to HRSA, various quarters were not corrected from the incorrect prior year submission, resulting in an overstatement of lost revenues reported in THS’s official filing. Cause – The cause of this deficiency is due to the lack of internal controls to ensure proper reporting of lost revenues on the reporting portal. Effect – The effect is an overstatement of lost revenues reporting to HRSA on the reporting portal. Recommendation – We recommend that THS implement internal control procedures to ensure proper reporting on the HRSA reporting portal in future reporting periods. Management’s Response – We will implement internal control procedures to ensure proper reporting of lost revenues, as is required under the reporting guidelines stipulated by HRSA, in future reporting periods. We do not believe the overstatement of lost revenues resulted in an overstatement of THS’s received allowable funds to be utilized as part of the Provider Relief Fund program.

Corrective Action Plan

September 29, 2023 U.S. Department of Health and Human Services Triad Health Systems, Inc. respectively submits the following corrective action plan for the year ended December 31, 2022. Name and address of independent public accounting firm: Blue & Co., LLC 2650 Eastpoint Pkwy., Suite 300 Louisville, Kentucky 40223 Audit period: Year ended December 31, 2022. The findings from the schedule of findings and questioned costs for the year ended December 31, 2022, are discussed below. The findings are numbered consistently with the numbers assigned in the Schedule. FINDINGS – FEDERAL AWARD PROGRAM AUDITS 2022-001 Condition: Improper reporting of lost revenues on Phase 4 PRF submission: When submitting information related to Phase 4 of the Provider Relief Fund (“PRF”) program to the Health Resources and Services Administration (“HRSA”), various quarters were not corrected from the incorrect prior year submission, resulting in an overstatement of lost revenues reported in the THS’s official filing. Action: Management will implement internal control procedures by December 31, 2023, to ensure the proper reporting of any potential lost revenues on future PRF program submission to HRSA. If the U.S. Department of Health and Human Services has questions regarding this plan, please call Adam Craft, CEO, at (859) 567-1591. Sincerely, Adam Craft Chief Executive Officer

Prior Finding References

2021-002

About Reporting →

FY 2021-12-31

FAC accepted this audit on September 29, 2022 — management decision was due March 29, 2023.

2021-002
Reporting
MATERIAL WEAKNESS

MATERIAL WEAKNESS Federal Agency: U.S. Department of Health and Human Services Assistance Listing Number: 93.498 ? COVID-19 ? Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution 2021-002: Reporting of Lost Revenues Attributable to Coronavirus Compliance Requirement(s): Reporting Criteria: Reporting requirements stipulate that when submitting information related to lost revenues attributable to coronavirus on the Health Resources and Services Administration (?HRSA?) Provider Relief Funding reporting portal, patient service revenues must be entered on a quarterly basis from the first quarter of 2019 through the second quarter of 2021. Condition ? During our testing of the underlying information supporting lost revenue reported by THS, we noted two quarters where no patient service revenue was added to the portal for reporting purposes. Cause ? The cause of this deficiency is due to the lack of internal controls to ensure proper reporting of lost revenues on the reporting portal. Effect ? The effect is an overstatement of lost revenues reporting to HRSA on the reporting portal. Recommendation ? We recommend that THS implement internal control procedures to ensure proper reporting on the HRSA reporting portal in future reporting periods. Management?s Response ? We will implement internal control procedures to ensure proper reporting of lost revenues, as is required under the reporting guidelines stipulated by HRSA, in future reporting periods. We do not believe the overstatement of lost revenues resulted in an overstatement of THS?s received allowable funds to be utilized as part of the Provider Relief Fund program.

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MATERIAL WEAKNESS Federal Agency: U.S. Department of Health and Human Services Assistance Listing Number: 93.498 ? COVID-19 ? Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution 2021-002: Reporting of Lost Revenues Attributable to Coronavirus Compliance Requirement(s): Reporting Criteria: Reporting requirements stipulate that when submitting information related to lost revenues attributable to coronavirus on the Health Resources and Services Administration (?HRSA?) Provider Relief Funding reporting portal, patient service revenues must be entered on a quarterly basis from the first quarter of 2019 through the second quarter of 2021. Condition ? During our testing of the underlying information supporting lost revenue reported by THS, we noted two quarters where no patient service revenue was added to the portal for reporting purposes. Cause ? The cause of this deficiency is due to the lack of internal controls to ensure proper reporting of lost revenues on the reporting portal. Effect ? The effect is an overstatement of lost revenues reporting to HRSA on the reporting portal. Recommendation ? We recommend that THS implement internal control procedures to ensure proper reporting on the HRSA reporting portal in future reporting periods. Management?s Response ? We will implement internal control procedures to ensure proper reporting of lost revenues, as is required under the reporting guidelines stipulated by HRSA, in future reporting periods. We do not believe the overstatement of lost revenues resulted in an overstatement of THS?s received allowable funds to be utilized as part of the Provider Relief Fund program.

Corrective Action Plan

CORRECTIVE ACTION PLAN September 29, 2022 U.S. Department of Health and Human Services Triad Health Systems, Inc. respectively submits the following corrective action plan for the year ended December 31, 2021. Name and address of independent public accounting firm: Blue & Co., LLC 2650 Eastpoint Pkwy., Suite 300 Louisville, Kentucky 40223 Audit period: Year ended December 31, 2021. The findings from the schedule of findings and questioned costs for the year ended December 31, 2021, are discussed below. The findings are numbered consistently with the numbers assigned in the Schedule. FINDINGS - FINANCIAL STATEMENT AUDIT 2021-001 Condition: Lack of documentation: Invoices paid to various vendors lacked receiving reports to support the amounts being paid. Action: Management will implement internal control procedures by December 31, 2022, to ensure the matching of receiving documentation with invoices prior to payment to vendors. FINDINGS ? FEDERAL AWARD PROGRAM AUDITS 2021-002 Condition: Lack of documentation: When submitting information related to Phase I of the Provider Relief Fund (?PRF?) program to the Health Resources and Services Administration (?HRSA?), two quarters did not have quarterly patient service revenue entered, resulting in an overstatement of lost revenues reported in the Organization?s official filing. Action: Management will implement internal control procedures by December 31, 2022, to ensure the proper reporting of any potential lost revenues on future PRF program submission to HRSA. If the U.S. Department of Health and Human Services has questions regarding this plan, please call Adam Craft, CEO, at (859) 567-1591. Sincerely, Adam Craft Chief Executive Officer

About Reporting →

FY 2018-12-31

FAC accepted this audit on January 5, 2020 — management decision was due July 5, 2020.

2018-003
Special Tests & Provisions

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

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2018-004
Cash Management

GSA_MIGRATION

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GSA_MIGRATION

Corrective Action Plan

GSA_MIGRATION

About Cash Management →

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