FAC Explorer

Audit 24005

FY End
2022-12-31
Total Expended
$12.22M
Findings
2
Programs
4
Organization: Anderson Healthcare (IL)
Year: 2022 Accepted: 2023-08-15
Auditor: Forvis LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
34795 2022-004 Material Weakness - BL
611237 2022-004 Material Weakness - BL

Programs

ALN Program Spent Major Findings
93.498 Covid-19 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $10.47M Yes 1
21.027 Covid -19 Coronavirus State and Local Fiscal Recovery Funds $894,118 Yes 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $814,456 Yes 0
93.461 Hrsa Covid-19 - Claims Reimbursement for the Uninsured Program and the Covid-19 Coverage Assistance Fund $37,672 - 0

Contacts

Name Title Type
FZDTVXU7NR85 Mike Marshall Auditee
6183916402 Fred Helfrich 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 or the awards terms and conditions, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. 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 Anderson Healthcare (the Organization) under programs of the federal government for the year ended December 31, 2022. 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 Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.
Title: Subsidiaries Included in the Schedule 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 or the awards terms and conditions, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Schedule consists of federal funds received and expended by the Organization and its subsidiaries, Anderson Hospital (AH, TIN #37-0662561), Anderson Medical Group, LLC (AMG, TIN #20-0802394), and Maryville Imaging, LLC (MI, TIN #45-2588783). The Organizations consolidated financial statements include the operations of Community Hospital of Staunton, which expended $7,800,015 in federal awards which are not included in the Organizations schedule of expenditures of federal awards during the year ended December 31, 2022. Our audit did not include the operations of Community Hospital of Staunton as they had a separate single audit with its own Schedule of Expenditure of Federal Awards dated May 24, 2023.
Title: Federal Emergency Management Agency 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 or the awards terms and conditions, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Organization incurred $814,456 of ALN 97.036 Federal Emergency Management Agency (FEMA) expenses in the fiscal year ended December 31, 2021. Based on guidance provided by the FEMA Program and Policy Guide, if the Organization incurs eligible expenditures in its fiscal year 2021 and FEMA approves the Organizations Project Worksheet in the Organizations fiscal year 2022, the Organization records the eligible expenditures in its fiscal year 2022 Schedule of Expenditures of Federal Awards with a footnote that discloses the amount included on the Schedule of Expenditures of Federal Awards that was incurred in a prior year.

Finding Details

Finding 2022-004
Finding: Allowable Costs/Cost Principles and Reporting U.S. Department of Health and Human Services Direct Program: COVID-19 Provider Relief Fund and the American Rescue Plan (ARP) Rural Distribution Federal Assistance Listing No. 93.498, Period 3 Funding Criteria or Specific Requirement ? Reporting (45 CFR 75.342) and Activities Allowed/Unallowed and Cost Principles (Pub L. No. 116-136, 134 Stat. 563 and Pub L. No. 116-139, 134 Stat. 622 and 623). The Provider Relief Fund (PRF) was established in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, P.L. 116-136) to reimburse, through grants or other mechanisms, eligible health care providers for increased expenses or lost revenue attributable to Coronavirus Disease (COVID-19). Entities that received more than $10,000 (either one time or in the aggregate) are required to report the uses of their funds, including the lost revenue reimbursement and documentation of how the lost revenue was calculated. In addition, management is responsible for establishing and maintaining effective internal controls over costs directly and indirectly charged to federal awards. Condition ? The Organization claimed and reported duplicative direct COVID-19 expenditures or amounts that were not able to be supported. Questioned costs ? $860,210 of COVID-19 expenses that were charged and reported were duplicative and/or unsupported. Context ? The Organization incorrectly re-reported and claimed $778,860 of Period 1 expenses in the Period 3 submission, which resulted in overstating expenses claimed against PRF funds of $778,860. In addition, the Organization incorrectly double counted $81,350 in Contract Labor in the Period 3 submission. Effect ? The Other Provider Relief Fund Expenses for Payments Received included unallowable expenses on the portal submission. Cause ? Unallowable costs were included on the portal submission due to the Organization?s lack of appropriate management review. Identification as a Repeat Finding ? Not applicable. Recommendation ? The Organization should continue to improve understanding of the guidance related to this type of reporting and implement additional controls over future reporting periods to help ensure guidance is followed. View of Responsible Official and Planned Corrective Actions ? The Organization agrees with this finding. See separate auditee document for planned corrective action.
Finding 2022-004
Finding: Allowable Costs/Cost Principles and Reporting U.S. Department of Health and Human Services Direct Program: COVID-19 Provider Relief Fund and the American Rescue Plan (ARP) Rural Distribution Federal Assistance Listing No. 93.498, Period 3 Funding Criteria or Specific Requirement ? Reporting (45 CFR 75.342) and Activities Allowed/Unallowed and Cost Principles (Pub L. No. 116-136, 134 Stat. 563 and Pub L. No. 116-139, 134 Stat. 622 and 623). The Provider Relief Fund (PRF) was established in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, P.L. 116-136) to reimburse, through grants or other mechanisms, eligible health care providers for increased expenses or lost revenue attributable to Coronavirus Disease (COVID-19). Entities that received more than $10,000 (either one time or in the aggregate) are required to report the uses of their funds, including the lost revenue reimbursement and documentation of how the lost revenue was calculated. In addition, management is responsible for establishing and maintaining effective internal controls over costs directly and indirectly charged to federal awards. Condition ? The Organization claimed and reported duplicative direct COVID-19 expenditures or amounts that were not able to be supported. Questioned costs ? $860,210 of COVID-19 expenses that were charged and reported were duplicative and/or unsupported. Context ? The Organization incorrectly re-reported and claimed $778,860 of Period 1 expenses in the Period 3 submission, which resulted in overstating expenses claimed against PRF funds of $778,860. In addition, the Organization incorrectly double counted $81,350 in Contract Labor in the Period 3 submission. Effect ? The Other Provider Relief Fund Expenses for Payments Received included unallowable expenses on the portal submission. Cause ? Unallowable costs were included on the portal submission due to the Organization?s lack of appropriate management review. Identification as a Repeat Finding ? Not applicable. Recommendation ? The Organization should continue to improve understanding of the guidance related to this type of reporting and implement additional controls over future reporting periods to help ensure guidance is followed. View of Responsible Official and Planned Corrective Actions ? The Organization agrees with this finding. See separate auditee document for planned corrective action.