FAC Explorer

Audit 18733

FY End
2022-12-31
Total Expended
$34.96M
Findings
2
Programs
3
Organization: Trinidad Area Health Association, Inc. (CO)
Year: 2022 Accepted: 2023-07-09
Auditor: Stockman Kast Ryan + CO LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
21553 2022-001 Significant Deficiency - B
597995 2022-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $32.67M Yes 0
93.498 Provider Relief Fund $2.15M Yes 1
93.155 Rural Health Research Centers $135,569 - 0

Contacts

Name Title Type
S6LTYZAM5GF1 Calvin Carey Auditee
7198468042 Mike Rowe Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The Schedule of Expenditures of Federal Awards (the schedule) includes the Federal awards activity of Trinidad Area Health Association, Inc. (the Hospital) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Because the schedule presents only a selected portion of the operations of the Hospital, it is not intended to and does not present the financial position, results of operations, changes in net assets, or cash flows of the Hospital. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. COMMUNITY FACILITIES LOANS AND GRANTS (10.766) - Balances outstanding at the end of the audit period were 31863849. The Amount Expended under CFDA 10.766, Community Facilities Loans and Grants, represents the beginning loan balances under the United States Department of Agriculture (USDA) insured loan with MidFirst Bank and the Direct Loans with the USDA (totaling $32,618,280 at the beginning of the year), as well as grant funds received and expended during the year of $49,967.
Title: Subrecipients Accounting Policies: The Schedule of Expenditures of Federal Awards (the schedule) includes the Federal awards activity of Trinidad Area Health Association, Inc. (the Hospital) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Because the schedule presents only a selected portion of the operations of the Hospital, it is not intended to and does not present the financial position, results of operations, changes in net assets, or cash flows of the Hospital. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Hospital provided no federal awards to subrecipients.
Title: Expenditures under CFDA 93.498 Accounting Policies: The Schedule of Expenditures of Federal Awards (the schedule) includes the Federal awards activity of Trinidad Area Health Association, Inc. (the Hospital) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards. Because the schedule presents only a selected portion of the operations of the Hospital, it is not intended to and does not present the financial position, results of operations, changes in net assets, or cash flows of the Hospital. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures under CFDA 93.498, Provider Relief Fund (PRF) applies the guidance of the U.S. Department of Health and Human Services (HHS). For the PRF program, the amounts on the schedule are reported based on the PRF portal submission guidelines. Payments from HHS for the PRF are assigned to one of five Payment Received Periods based upon the date each payment from the PRF was received. Each Period has a specified Period of Availability and timing of reporting requirements. The schedule includes those qualifying expenditures and/or lost revenues that were reported in the PRF portal for Period 4 (Payment Received Periods from July 1, 2021 to December 31, 2021 and Period of Availability from January 1, 2020 to December 31, 2022). The Hospital was not required to submit a Period 3 filing. The amount presented in this schedule may differ from amounts presented in the basic financial statements.The Hospital did not receive any donated federal personal protective equipment (PPE) during the year ended December 31, 2022.

Finding Details

Finding 2022-001
Criteria or Specific Requirement ? The Hospital is required to submit filings with the Health Resource and Service Administration (HRSA) with respect to the Provider Relief Fund (PRF). Such filings include reporting of COVID-19 costs and lost revenues, as defined. Providers are not allowed to use PRF payments to reimburse expenses that have been reimbursed from other sources. Condition ? The Hospital?s Provider Relief Fund filing with HRSA for Reporting Period 4 did not consider COVID-19 costs that were potentially already reimbursed with a Paycheck Protection Program (PPP) loan. The PPP loan was subsequently forgiven. Context ? The Hospital engaged an independent firm to prepare its PRF filing for Reporting Period 4. Cause ? That firm did not consider the possibility that COVID-19 costs reported to the PRF could have been previously reimbursed by a PPP loan. The Hospital did not detect this oversight in its review of the Reporting Period 4 filing. Effect or Potential Effect ? The allowable COVID-19 costs incurred by the Hospital for Filing Period 4 exceeded the Filing Period 4 PRF payments received. Also, the costs included on the PPP loan forgiveness application exceeded the PPP loan. The Hospital performed an analysis which concluded that no COVID-19 costs included in the PRF Period 4 filing were previously reimbursed through the PPP loan forgiveness. Also, the Hospital incurred significant COVID-19 costs in 2022 that were not reported in the Period 4 Filing due to the aforementioned excess of costs during 2020 and 2021. However, the initial lack of consideration of the PPP loan forgiveness is an internal control deficiency. Questioned Costs ? There are no questioned costs. As noted above, the Hospital has concluded that the filing for Reporting Period 4 does not include costs that were previously reimbursed. Recommendation ? We recommend that the Hospital implement review procedures for any future filings with HRSA that ensure consideration of all relevant rules and regulations. Views of Responsible Officials and Planned Corrective Actions ? Management agrees with the finding and has taken steps to ensure any future filings consider all relevant rules and regulations.
Finding 2022-001
Criteria or Specific Requirement ? The Hospital is required to submit filings with the Health Resource and Service Administration (HRSA) with respect to the Provider Relief Fund (PRF). Such filings include reporting of COVID-19 costs and lost revenues, as defined. Providers are not allowed to use PRF payments to reimburse expenses that have been reimbursed from other sources. Condition ? The Hospital?s Provider Relief Fund filing with HRSA for Reporting Period 4 did not consider COVID-19 costs that were potentially already reimbursed with a Paycheck Protection Program (PPP) loan. The PPP loan was subsequently forgiven. Context ? The Hospital engaged an independent firm to prepare its PRF filing for Reporting Period 4. Cause ? That firm did not consider the possibility that COVID-19 costs reported to the PRF could have been previously reimbursed by a PPP loan. The Hospital did not detect this oversight in its review of the Reporting Period 4 filing. Effect or Potential Effect ? The allowable COVID-19 costs incurred by the Hospital for Filing Period 4 exceeded the Filing Period 4 PRF payments received. Also, the costs included on the PPP loan forgiveness application exceeded the PPP loan. The Hospital performed an analysis which concluded that no COVID-19 costs included in the PRF Period 4 filing were previously reimbursed through the PPP loan forgiveness. Also, the Hospital incurred significant COVID-19 costs in 2022 that were not reported in the Period 4 Filing due to the aforementioned excess of costs during 2020 and 2021. However, the initial lack of consideration of the PPP loan forgiveness is an internal control deficiency. Questioned Costs ? There are no questioned costs. As noted above, the Hospital has concluded that the filing for Reporting Period 4 does not include costs that were previously reimbursed. Recommendation ? We recommend that the Hospital implement review procedures for any future filings with HRSA that ensure consideration of all relevant rules and regulations. Views of Responsible Officials and Planned Corrective Actions ? Management agrees with the finding and has taken steps to ensure any future filings consider all relevant rules and regulations.