THE METHODIST HOSPITALS, INC.Non-Profit

ALN Number, Federal Agency, and Program Name 93.461, Department of Health and Human Services, COVID 19 Testing for the Uninsured Federal Award Identification Number and Year N/A Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria Per 2 CFR 200.508(b), an auditee must prepare appropriate financial statements, including the schedule of expenditures of federal awards, in accordance with 200.510 financial statements. Per 2 CFR 200.510(b), 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 basis for determining federal awards expended. Condition Controls in place were not adequate to ensure the schedule of federal expenditures was complete and accurate. Questioned Costs N/A Identification of How Questioned Costs Were Computed N/A Context The Methodist Hospitals, Inc. did not initially include the funds received through the HRSA COVID-19 - Testing for the Uninsured on the Schedule due to not capturing the program expenditures on an accrual basis during the original evaluation. Cause and Effect The Hospital did not have a process in place to identify the applicable SEFA reporting period for certain sources of federal funding expended, resulting in the SEFA being incomplete. Initially, no single audit was performed and filed for the year ended December 31, 2020, as the reported federal funds were not in excess of $750,000. Upon discovery of the error, the Hospital prepared a SEFA which included the HRSA COVID-19 Testing for the Uninsured funds. This lack of controls resulted in the single audit not being submitted timely to the federal audit clearinghouse. Recommendation Management should implement controls to ensure all federal funding received is properly identified as such and included on the SEFA. Views of Responsible Officials and Corrective Action Plan Management agrees with the finding as reported. The Hospital will check listing on the U.S. Department of Health and Human Services website at least twice per year and prior to any required reporting.