FAC Explorer

Audit 19849

FY End
2022-09-30
Total Expended
$16.31M
Findings
2
Programs
4
Organization: Bristol Hospital, Incorporated (CT)
Year: 2022 Accepted: 2023-06-29
Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
20273 2022-001 Significant Deficiency - L
596715 2022-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $10.94M Yes 1
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $3.11M Yes 0
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $1.07M - 0
93.268 Immunization Cooperative Agreements $3,362 - 0

Contacts

Name Title Type
FSBDFB13CGR9 Tim Ajayi Auditee
8605853024 Joseph Loiacono 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, when shown on the Schedule, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented when available. De Minimis Rate Used: N Rate Explanation: The Hospital has not elected to use the 10 percent de minimis indirect cost rate for federal awards under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant expenditures of Bristol Hospital, Incorporated (the Hospital) 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 the 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 Hospital, it is not intended to and does not present the consolidated financial position, changes in net assets or cash flows of the Hospital.
Title: Noncash Assistance 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, when shown on the Schedule, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented when available. De Minimis Rate Used: N Rate Explanation: The Hospital has not elected to use the 10 percent de minimis indirect cost rate for federal awards under the Uniform Guidance. The Schedule includes $1,186,734 of noncash assistance, which includes $1,183,372 for the WIC program (Assisted Listing Number 10.557) in the form of program vouchers issued at the WIC office on behalf of the United Statements Department of Agriculture (USDA) and $3,362 (for the Childhood Immunization Grant vaccine program, Assisted Listing Number 93.268) in the form of childhood vaccines administered at the Hospital's clinic office on behalf of the United States Department of Health and Human Services. These benefits are issued at the local level but tracked at the State of Connecticut pass-through level. The vouchers allow for purchases of approved food items.
Title: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution - As 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, when shown on the Schedule, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Pass-through entity identifying numbers are presented when available. De Minimis Rate Used: N Rate Explanation: The Hospital has not elected to use the 10 percent de minimis indirect cost rate for federal awards under the Uniform Guidance. For the HHS award related to the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) program, HHS has indicated the amounts on the Schedule be reported corresponding to reporting requirements of the Health Resources and Services Administration (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 Period's deadline to use the funds (i.e., after the end of the Period of Availability). The Schedule includes $10,940,729 received from HHS between July 1, 2020 through December 31, 2020. In accordance with guidance from HHS, these amounts are presented as Period 2. The Hospital did not receive funding in Period 3. Such amounts were recognized as COVID-19 grant revenue in the Hospital's consolidated financial statements as shown in the Schedule in the year ended September 30, 2021. The Schedule includes the following entity that received the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution program:Legal Entity NameTax Identification NumberBristol Hospital Inc.060646599

Finding Details

Finding 2022-001
Finding 2022-001: Significant Deficiency in Internal Control Over the Major Federal Program Assistance Listing Number: 93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: N/A Award Number: N/A Award Year: 2020 Compliance Requirement: Reporting Criteria: Recipients of Provider Relief Funds and American Rescue Plan (ARP) Rural Distribution (PRF) payments must comply with the reporting requirements described in the PRF terms and conditions and specified in directions issued by the U.S. Department of Health and Human Services. Condition/Context: The Hospital did not complete the PRF reporting in accordance with the HHS guidance. The Hospital inadvertently reported non-incremental expenses of $3,719,680 for mortgage/rent and insurance. As a result, the total unused lost revenues in period 2 would change from $13,200,472 to $9,480,792. Effect: The amounts reported to Health Resources & Services Administration (HRSA) were not in accordance with established HHS reporting guidance. Questioned Costs: None Cause: An oversight by management to include non-incremental expenses. Recommendation: We recommend that management implement procedures to ensure that the most recent guidance is reviewed, and that information used in preparation of the reports is reviewed. Views of Responsible Officials: The Hospital agrees with the finding. Management will implement procedures to ensure that the most recent guidance is reviewed, and that information used in the preparation of the reports is reviewed by the Chief Financial Officer. The Hospital will not include non-incremental expenses in future reports. The Hospital has sufficient unused lost revenue to cover the expenses noted above.
Finding 2022-001
Finding 2022-001: Significant Deficiency in Internal Control Over the Major Federal Program Assistance Listing Number: 93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: N/A Award Number: N/A Award Year: 2020 Compliance Requirement: Reporting Criteria: Recipients of Provider Relief Funds and American Rescue Plan (ARP) Rural Distribution (PRF) payments must comply with the reporting requirements described in the PRF terms and conditions and specified in directions issued by the U.S. Department of Health and Human Services. Condition/Context: The Hospital did not complete the PRF reporting in accordance with the HHS guidance. The Hospital inadvertently reported non-incremental expenses of $3,719,680 for mortgage/rent and insurance. As a result, the total unused lost revenues in period 2 would change from $13,200,472 to $9,480,792. Effect: The amounts reported to Health Resources & Services Administration (HRSA) were not in accordance with established HHS reporting guidance. Questioned Costs: None Cause: An oversight by management to include non-incremental expenses. Recommendation: We recommend that management implement procedures to ensure that the most recent guidance is reviewed, and that information used in preparation of the reports is reviewed. Views of Responsible Officials: The Hospital agrees with the finding. Management will implement procedures to ensure that the most recent guidance is reviewed, and that information used in the preparation of the reports is reviewed by the Chief Financial Officer. The Hospital will not include non-incremental expenses in future reports. The Hospital has sufficient unused lost revenue to cover the expenses noted above.