FAC Explorer

Audit 16158

FY End
2022-06-30
Total Expended
$25.05M
Findings
2
Programs
4
Organization: Swedishamerican Health System Corporation (IL)
Year: 2022 Accepted: 2022-12-26
Auditor: Rsm US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
12114 2022-001 - - A
588556 2022-001 - - A

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $24.06M Yes 1
93.788 Opioid Str $456,915 - 0
93.461 Covid-19 Testing for the Uninsured $297,378 - 0
93.575 Child Care and Development Block Grant $238,140 - 0

Contacts

Name Title Type
XVEZJEGJBBZ3 Patti Dewane Auditee
7796964009 Linda Dolezalek Auditor
No contacts on file

Notes to SEFA

Title: Note 1. 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. De Minimis Rate Used: Y Rate Explanation: The Corporation has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of SwedishAmerican Health System Corporation and Subsidiaries (the Corporation) under programs of the federal government for the year ended June 30, 2022. The information in the 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 Corporation, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Corporation.
Title: Note 4. Non-Cash Assistance, Insurance, Loans and Loan Guarantees Outstand 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. De Minimis Rate Used: Y Rate Explanation: The Corporation has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Corporation did not receive any non-cash assistance during the year ended June 30, 2022. The Corporation did not have any federal insurance in effect during the year ended June 30, 2022, nor were there any loans or loan guarantees at year end.
Title: Note 5. Subrecipients 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. De Minimis Rate Used: Y Rate Explanation: The Corporation has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Corporation did not pass-through any federal awards to subrecipients during the year ended June 30, 2022.
Title: Note 6. Provider Relief Fund and American Rescue Plan Rural Distribution 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. De Minimis Rate Used: Y Rate Explanation: The Corporation has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. For the federal awards related to the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) (ALN 93.498) program, the U.S. Department of Health and Human Services (HHS) has indicated the amounts on the Schedule be reported corresponding to reporting requirements of the HRSA PRF Reporting Portal. Payments from HHS for PRF are assigned to Payment Received Periods (each, a Period) based upon the date each payment from the PRF was received. Each Period has a specified Period of Availability and timing of reporting requirements. Entities report into the HRSA PRF Reporting Portal after each Periods deadline to use the funds (i.e., after the end of the Period of Availability).The accompanying Schedule includes $10,400,000 of Period 2 distributions received from HHS between July 1, 2020 through December 31, 2020, plus interest earned of $983 for a total of $10,400,983 reported by the Corporation in the HRSA PRF Reporting Portal as used during the corresponding Period of Availability, in accordance with guidance from HHS. The accompanying Schedule includes $13,659,074 of Period 3 distributions received from HHS between January 1, 2021 through June 30, 2021, plus interest earned of $576 for a total of $13,659,650 reported by the Corporation in the HRSA PRF Reporting Portal as used during the corresponding Period of Availability in accordance with guidance from HHS.Due to the PRF reporting requirements, these amounts are not the total PRF received and recognized as CARES Act revenue in the Corporations consolidated statements. PRF distributions recognized as CARES Act revenue in the Corporations consolidated statements of operations and changes in net assets were $3,695,000 and $24,059,000 during the years ended June 30, 2022 and 2021, respectively.

Finding Details

Finding 2022-001
Finding 2022-001? Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Reporting Federal program: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution, ALN 93.498 Criteria: 2. CFR Part 200.303(a) states that the auditee must establish and maintain effective internal control over the federal awards that provides reasonable assurance that the auditee is managing the federal award in compliance with the federal statutes, regulations, and terms and conditions of the federal award. Specific criteria established by the Health Resources and Services Administration (HRSA) reporting guidance, establishes that providers who accept PRF payments agree to the Terms and Conditions of the Program, which include a requirement for providers to report on the use of funds. Providers who receive one or more payments totaling greater than $10,000 in the aggregate during a payment received period must report on use of funds in each applicable reporting period. Condition: Certain amounts reported as lab expenses for Period 2 were overstated by approximately $1,059,000. The Corporation double counted lab expenses from two locations. Cause: Upon review by management subsequent to Period 2 submission to the Reporting Portal, management identified an overstatement of certain lab expenses from two lab locations that were inadvertently included twice in the total eligible expenses within the Reporting Portal. Effect: Certain lab expenses reported for Period 2 in the Reporting Portal were overstated by approximately $1,059,000. Questioned costs: No Context: Lab expenses of approximately $1,059,000 out of total eligible expenses reported to the Reporting Portal for Period 2 of $10,400,983 were overstated. The error was isolated to the expenses from two outside labs reported in Period 2. Repeat finding? No Recommendation: We recommend management review and strengthen its internal control review process over reporting. Views of responsible officials of the auditee: The Corporation?s management agrees with the finding and the auditor?s recommendation.
Finding 2022-001
Finding 2022-001? Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Reporting Federal program: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution, ALN 93.498 Criteria: 2. CFR Part 200.303(a) states that the auditee must establish and maintain effective internal control over the federal awards that provides reasonable assurance that the auditee is managing the federal award in compliance with the federal statutes, regulations, and terms and conditions of the federal award. Specific criteria established by the Health Resources and Services Administration (HRSA) reporting guidance, establishes that providers who accept PRF payments agree to the Terms and Conditions of the Program, which include a requirement for providers to report on the use of funds. Providers who receive one or more payments totaling greater than $10,000 in the aggregate during a payment received period must report on use of funds in each applicable reporting period. Condition: Certain amounts reported as lab expenses for Period 2 were overstated by approximately $1,059,000. The Corporation double counted lab expenses from two locations. Cause: Upon review by management subsequent to Period 2 submission to the Reporting Portal, management identified an overstatement of certain lab expenses from two lab locations that were inadvertently included twice in the total eligible expenses within the Reporting Portal. Effect: Certain lab expenses reported for Period 2 in the Reporting Portal were overstated by approximately $1,059,000. Questioned costs: No Context: Lab expenses of approximately $1,059,000 out of total eligible expenses reported to the Reporting Portal for Period 2 of $10,400,983 were overstated. The error was isolated to the expenses from two outside labs reported in Period 2. Repeat finding? No Recommendation: We recommend management review and strengthen its internal control review process over reporting. Views of responsible officials of the auditee: The Corporation?s management agrees with the finding and the auditor?s recommendation.