FAC Explorer

Audit 22796

FY End
2022-12-31
Total Expended
$5.83M
Findings
2
Programs
1
Organization: Olmsted Medical Center (MN)
Year: 2022 Accepted: 2023-09-28
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
20975 2022-001 Significant Deficiency - B
597417 2022-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $5.83M Yes 1

Contacts

Name Title Type
MNKSKN6F9ND9 Matthew Peterson Auditee
5072883443 Ryan Strusz Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: No funds were identified as having been provided to subrecipients by the Medical Center and accordingly, no funds identified in the schedule of expenditures of federal awards are attributable to subrecipient entities. There were no federal awards expended for noncash assistance or insurance. The Medical Center has elected to use the 10% de minimis indirect cost rate allowable under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The Medical Center has elected to use the 10% de minimis indirect cost rate allowable under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Olmsted Medical Centers (the Medical Center) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the applicable 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 of expenditures of federal awards presents only a selected portion of the operations of the Medical Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Medical Center.
Title: RECONCILATION OF SEFA AND FINANCIAL STATEMENTS Accounting Policies: No funds were identified as having been provided to subrecipients by the Medical Center and accordingly, no funds identified in the schedule of expenditures of federal awards are attributable to subrecipient entities. There were no federal awards expended for noncash assistance or insurance. The Medical Center has elected to use the 10% de minimis indirect cost rate allowable under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The Medical Center has elected to use the 10% de minimis indirect cost rate allowable under the Uniform Guidance. The financial statements reflect revenue recognized from the Provider Relief Fund (PRF) and American Rescue Plan (ARP) of $-0- and $5,834,398 for the years ended December 31, 2022 and 2021, respectively. The Schedule includes PRF and ARP funds of $5,834,398 that were received in Period 3 and Period 4 in accordance with the requirements of the compliance supplement for assistance listing number 93.498.

Finding Details

Finding 2022-001
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Provider Relief Fund and American Rescue Plan AL Number: 93.498 Award Period: January 1, 2022 ? June 30, 2022 (Period 3) and July 1, 2022 ? December 31, 2022 (Period 4) Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: PRF and ARP funds cannot be used to cover expenditures for which support of the expense cannot be provided. Condition and Context: During our testing, we noted an amount that was included on the report as an expense, but the expense was subsequently reversed. Cause: Management oversight in submitting costs for reimbursement without adequate support and payment. Effect: Potential to receive improper reimbursement from the Provider Relief Fund. Questioned Costs: $77 Repeat Finding: No Recommendation: We recommend that management review the PRF and ARP guidelines to make sure amounts requested for reimbursement are supported by paid invoices. Management?s Response: Management will review reporting requirements to ensure proper reporting in future periods. However, it is noted there was sufficient unreimbursed expenses to support the PRF and ARP distributions received.
Finding 2022-001
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Provider Relief Fund and American Rescue Plan AL Number: 93.498 Award Period: January 1, 2022 ? June 30, 2022 (Period 3) and July 1, 2022 ? December 31, 2022 (Period 4) Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: PRF and ARP funds cannot be used to cover expenditures for which support of the expense cannot be provided. Condition and Context: During our testing, we noted an amount that was included on the report as an expense, but the expense was subsequently reversed. Cause: Management oversight in submitting costs for reimbursement without adequate support and payment. Effect: Potential to receive improper reimbursement from the Provider Relief Fund. Questioned Costs: $77 Repeat Finding: No Recommendation: We recommend that management review the PRF and ARP guidelines to make sure amounts requested for reimbursement are supported by paid invoices. Management?s Response: Management will review reporting requirements to ensure proper reporting in future periods. However, it is noted there was sufficient unreimbursed expenses to support the PRF and ARP distributions received.