Audit 20452

FY End
2022-12-31
Total Expended
$2.38M
Findings
2
Programs
6
Organization: Bonner General Hospital, Inc. (ID)
Year: 2022 Accepted: 2023-09-29
Auditor: Eide Bailly LLP

Organization Exclusion Status:

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Contacts

Name Title Type
WJY6NNJK5R65 John Hennessy Auditee
2082651101 Dave Studebaker Auditor
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Notes to SEFA

Title: Note A - Basis of Presentation Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting, with the exception for the COVID-19 Testing for the Uninsured program, which are based on when the claim is deemed eligible as evidenced by the receipt of monies from the federal agency. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Bonner General Hospital, Inc. (the Hospital) under programs of the federal government for the year ended December 31, 2022. The information 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 Hospital, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Hospital.
Title: Note D Provider Relief Fund and American Rescue Plan Funds Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting, with the exception for the COVID-19 Testing for the Uninsured program, which are based on when the claim is deemed eligible as evidenced by the receipt of monies from the federal agency. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Hospital received amounts from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund (PRF) program (Federal Financial Assistance Listing/CFDA #93.498) during the year ended December 31, 2021. The Hospital incurred eligible expenditures, including lost revenue, and therefore, recognized revenues totaling $1,849,222, including interest, for the year ended December 31, 2021 on theconsolidated financial statements. The PRF expenditures are not recognized on the schedule until the expenditures are included in the reporting to HHS as required under the PRF program.

Finding Details

2022-001 - Department of Health and Human Services Federal Assistance Listing/CFDA 93.498 COVID-19 Provider Relief Funds and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 1 TIN #82-0207116 Reporting Material Weakness in Internal Control Over Compliance and Material Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Hospital excluded certain amounts from the amounts reported as ?2021 actuals (calendar year)? patient care revenue within the Period 4 Department of Health and Human Services report submission process. Cause: Management?s review of the schedule did not identify that there was an adjustment to net patient revenue that was not incorporated within the 2021 actuals. Effect: Key line items for reporting related to lost revenue were materially misstated. No lost revenue was claimed during the current period. Questioned Costs: None reported. Context/Sampling: Key line items were tested on the Period 4 Department of Health and Human Services special report. Repeat Finding from Prior Years: No. Recommendation Management should enhance its internal controls over federal award compliance and review to ensure proper reporting of revenue. Views of Responsible Officials: Management agrees with the finding.
2022-001 - Department of Health and Human Services Federal Assistance Listing/CFDA 93.498 COVID-19 Provider Relief Funds and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 1 TIN #82-0207116 Reporting Material Weakness in Internal Control Over Compliance and Material Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Hospital excluded certain amounts from the amounts reported as ?2021 actuals (calendar year)? patient care revenue within the Period 4 Department of Health and Human Services report submission process. Cause: Management?s review of the schedule did not identify that there was an adjustment to net patient revenue that was not incorporated within the 2021 actuals. Effect: Key line items for reporting related to lost revenue were materially misstated. No lost revenue was claimed during the current period. Questioned Costs: None reported. Context/Sampling: Key line items were tested on the Period 4 Department of Health and Human Services special report. Repeat Finding from Prior Years: No. Recommendation Management should enhance its internal controls over federal award compliance and review to ensure proper reporting of revenue. Views of Responsible Officials: Management agrees with the finding.