FAC Explorer

Audit 10976

FY End
2022-09-30
Total Expended
$7.16M
Findings
2
Programs
2
Organization: Deaf Smith County Hospital District (TX)
Year: 2022 Accepted: 2024-01-11
Auditor: Forvis LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
8274 2022-001 - - L
584716 2022-001 - - L

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $6.90M Yes 1
93.155 Rural Health Research Centers $255,560 - 0

Contacts

Name Title Type
LGHURWYYQAZ3 Paul Gafford Auditee
8063492141 Christa Worley Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Deaf Smith County Hospital District d.b.a. Hereford Regional Medical Center and Hereford Rural Health Clinic (the District) under programs of the federal government for the year ended September 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net position or cash flows of the District.
Title: Federal Loan Programs Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The District did not have any federal loan programs during the year ended September 30, 2022.

Finding Details

Finding 2022-001
COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number 93.498 U.S. Department of Health and Human Services Criteria: Reporting (45 CFR 75.342) The District is required to prepare and submit period two and three provider relief fund reports to the U.S. Department of Health and Human Services. These reports are to be prepared using accurate financial information and submitted by the deadline established. Condition: The District lost revenue reported did not include revenues for the entire period of reporting for Period 2, resulting in material differences in quarterly revenue. Questioned costs: None. Context: The period two provider relief fund report was tested. The District selected option 3 to report lost revenues. A difference in the calculation of lost revenues was identified related to an error in the calculation for quarters 3 and 4 of 2021, as the report only reported lost revenues up to the amount needed to cover period 2 receipts and not the entire reporting period. Cause: Internal controls over compliance were not in place to ensure the District properly calculated and reported lost revenues under option 3 to ensure the calculation included data from the full reporting period. The District is required to prepare and submit period two provider relief fund reporting. These reports are to be prepared using accurate financial information and submitted by the deadline established. The District did not correctly report all quarter data for their lost revenue calculation. Effect: Errors were made in reporting lost revenue for quarters 3 and 4 of 2021. Lost revenue was not accurately reported. Recommendation: Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Identification as a repeat finding: Not a repeat finding. Views of responsible officials and planned corrective actions: Management agrees with the finding of not properly calculating lost revenues under option 3 for reporting period 2. The District still has sufficient lost revenues to cover the amount of provider relief funding received and has updated the period 4 reporting to correct the errors noted above. The CFO, Paul Gafford, was responsible for the corrected data submitted with the period 4 reporting. The corrective action plan was implemented prior to September 30, 2023.
Finding 2022-001
COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number 93.498 U.S. Department of Health and Human Services Criteria: Reporting (45 CFR 75.342) The District is required to prepare and submit period two and three provider relief fund reports to the U.S. Department of Health and Human Services. These reports are to be prepared using accurate financial information and submitted by the deadline established. Condition: The District lost revenue reported did not include revenues for the entire period of reporting for Period 2, resulting in material differences in quarterly revenue. Questioned costs: None. Context: The period two provider relief fund report was tested. The District selected option 3 to report lost revenues. A difference in the calculation of lost revenues was identified related to an error in the calculation for quarters 3 and 4 of 2021, as the report only reported lost revenues up to the amount needed to cover period 2 receipts and not the entire reporting period. Cause: Internal controls over compliance were not in place to ensure the District properly calculated and reported lost revenues under option 3 to ensure the calculation included data from the full reporting period. The District is required to prepare and submit period two provider relief fund reporting. These reports are to be prepared using accurate financial information and submitted by the deadline established. The District did not correctly report all quarter data for their lost revenue calculation. Effect: Errors were made in reporting lost revenue for quarters 3 and 4 of 2021. Lost revenue was not accurately reported. Recommendation: Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Identification as a repeat finding: Not a repeat finding. Views of responsible officials and planned corrective actions: Management agrees with the finding of not properly calculating lost revenues under option 3 for reporting period 2. The District still has sufficient lost revenues to cover the amount of provider relief funding received and has updated the period 4 reporting to correct the errors noted above. The CFO, Paul Gafford, was responsible for the corrected data submitted with the period 4 reporting. The corrective action plan was implemented prior to September 30, 2023.