HOSPITAL SAN CARLOS, INC.Non-Profit

Finding No. 2021-001 Late Filing of Single Audit Reporting Package Federal Program COVID -19 Coronavirus Relief Fund Name of Federal Agency U.S. Department of Treasury Category Significant deficiency in internal control over compliance Criteria As required by the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), ? 200.512 Report submission (a) (1), ? the audit must be completed and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or Federal holiday, the reporting package is due the next business day?. Condition For year ended December 31, 2021, the Hospital did not file on time the reporting package required by CFR ? 200.512. Cause The condition was caused by the combination of a lack of managerial staff, workload caused by the COVID-19 pandemic, and delay in issuing audited financial statements. Effect Failure to make the required reports submissions may be considered by the grantor as a noncompliance with the criteria mentioned above and could lead to administrative sanctions by the grantor. Questioned Cost None. Context OMB granted a six (6) month extension for all single audits that cover recipients in the areas affected by Hurricane Fiona, declared major disaster areas, and have due dates between September 18, 2022, and December 31, 2022. Accordingly, the due date with the abovementioned extension was March 31, 2023. Identification of a repeat finding This is not a repeat finding. Views of responsible officials and planned corrective actions Management of the Hospital agrees with this finding. Please refer to the corrective action plan on page 42. Recommendation The Hospital should determine which of its process and procedures are critical and necessary to ensure that all the required filings are submitted on time. Such selected procedures must be assured to be completed with sufficient anticipation to comply with required deadlines. Assigning the task to a particular employee might also help in achieving this objective.