SOUTHWEST COMMUNITY HEALTH SYSTEM AND SUBSIDIARIESNon-Profit

2021-001 - ALN, Federal Agency, and Program Name - 97.036, U.S. Department of Homeland Security, COVID-19 - Disaster Grants Public Assistance (Presidentially Declared Disasters) Federal Award Identification Number and Year - FEMA-4507-PA-OH, 2021 Pass through Entity - Ohio Emergency Management Agency Finding Type - Significant deficiency Repeat Finding - No Criteria - This award is subject to the cost principle requirements outlined in 2 CFR 200, Subpart E. In order to comply with the cost principles, non federal entities must establish and maintain effective internal controls over the federal award, as described in 2 CFR 200.303(a). Condition - The System had a control to review the allowable expenses identified under this award; however, the control was ineffective and resulted in the inclusion of a duplicate invoice in the funding application submitted to the grantor. The duplicate expense was ultimately reimbursed. Questioned Costs - $2,198 Identification of How Questioned Costs Were Computed - The questioned costs total the amount of the invoice identified as a duplicate expense. Context - Out of a sample of 60 expenses, we identified expenses from one invoice that were incorrectly included in the detail of expenditures twice. Cause and Effect - The System designed controls related to identification of allowable costs, which included a review of the final listing of expenses; however, the review process did not effectively identify an expense that was included twice. The failure to have an effective control in place caused the System to be reimbursed double the amount of the actual expense incurred. Recommendation - We recommend that the review process include specific procedures to ensure that no expenses have been included more than once. Views of Responsible Officials and Corrective Action Plan - Management of the System agrees with the finding and has created a correction action plan for the finding.