FAC Explorer

Audit 2049

FY End
2022-12-31
Total Expended
$994,947
Findings
2
Programs
2
Organization: Grant County Public Hospital District No. 3 (WA)
Year: 2022 Accepted: 2023-11-01
Auditor: Dingus Zarecor & Associates PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1083 2022-001 Material Weakness - L
577525 2022-001 Material Weakness - L

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $992,832 Yes 1
93.461 Covid-19 Testing for the Uninsured $2,115 - 0

Contacts

Name Title Type
CJMAFSXAU1T3 Anthonie Zimmermann Auditee
5097175200 Shaun Johnson Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on this 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. The District has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: N/A The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Grant County Public Hospital District No. 3 doing business as Columbia Basin Hospital (the District) under programs of the federal government for the year ended December 31, 2022. Amounts reported on the Schedule for Federal Assistance Listing Number 93.498 – Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution are based upon the December 31, 2022, Provider Relief Fund report. 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.

Finding Details

Finding 2022-001
2022-001 Provider Relief Fund Reporting of Lost Revenues Federal Agency Department of Health and Human Services Assistance Listing Number 93.498 – Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Under the terms and conditions of the award, the recipient certifies it will include actual net patient service revenue in its calculation of lost revenue. Condition Net patient service revenue used to calculate lost revenue was overstated. Lost revenue could not be agreed to supporting documents. As a result, lost revenue was not accurately reported. Context This finding appears to be an isolated problem. Cause The District prepared its lost revenue calculation before adjustments for estimated third-party payor settlements were posted. The District also could not reconcile amounts claimed to supporting documents. Effect Lost revenue was not accurately reported. If the adjustment for estimated third-party payor settlements was accurately reflected in the calculation, the District would still have sufficient healthcare-related expenses attributable to coronavirus and lost revenues to use all of the Provider Relief Funds received. Therefore, there is no effect on the District’s retention of the Provider Relief Funds. Recommendation We recommend the District correct its lost revenue calculation in subsequent period reporting for the Provider Relief Fund, and that the District maintain supporting documents and calculations for lost revenue. Views of responsible officials and planned corrective action This issue was an isolated issue related to the timing of the final close of the 2022 financials occurring after Provider Relief Fund reporting deadline. We strongly believe this issue will not likely occur again.
Finding 2022-001
2022-001 Provider Relief Fund Reporting of Lost Revenues Federal Agency Department of Health and Human Services Assistance Listing Number 93.498 – Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria [X] Compliance Finding [ ] Significant Deficiency [X] Material Weakness Under the terms and conditions of the award, the recipient certifies it will include actual net patient service revenue in its calculation of lost revenue. Condition Net patient service revenue used to calculate lost revenue was overstated. Lost revenue could not be agreed to supporting documents. As a result, lost revenue was not accurately reported. Context This finding appears to be an isolated problem. Cause The District prepared its lost revenue calculation before adjustments for estimated third-party payor settlements were posted. The District also could not reconcile amounts claimed to supporting documents. Effect Lost revenue was not accurately reported. If the adjustment for estimated third-party payor settlements was accurately reflected in the calculation, the District would still have sufficient healthcare-related expenses attributable to coronavirus and lost revenues to use all of the Provider Relief Funds received. Therefore, there is no effect on the District’s retention of the Provider Relief Funds. Recommendation We recommend the District correct its lost revenue calculation in subsequent period reporting for the Provider Relief Fund, and that the District maintain supporting documents and calculations for lost revenue. Views of responsible officials and planned corrective action This issue was an isolated issue related to the timing of the final close of the 2022 financials occurring after Provider Relief Fund reporting deadline. We strongly believe this issue will not likely occur again.