FAC Explorer

Audit 24008

FY End
2022-09-30
Total Expended
$1.39M
Findings
2
Programs
2
Organization: Sweeny Hospital District (TX)
Year: 2022 Accepted: 2023-09-19
Auditor: Forvis

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
35322 2022-002 Material Weakness Yes L
611764 2022-002 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $1.14M Yes 1
93.155 Rural Health Research Centers $255,561 - 0

Contacts

Name Title Type
VYLNT27MJ7V8 Travis Alford Auditee
9795481500 Danielle Zimmerman 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, if any, 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 District has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Sweeny Hospital District d/b/a Sweeny Community Hospital (the District) 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 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.
Title: Federal Loan Programs 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, if any, 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 District has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The District did not have any federal loan programs during the year ended September 30, 2022.
Title: Personal Protective Equipment (PPE) (Unaudited) 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, if any, 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 District has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. For the year ended September 30, 2022, the District received $0 in federally donated personal protective equipment in response to the COVID-19 pandemic.

Finding Details

Finding 2022-002
2022-002 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Distribution Federal Assistance Listing Number 93.498 U.S. Department of Health and Human Services Criteria: Reporting (45 CFR 75.342) Condition: The District is required to prepare and submit period two and three provider relief fund reporting. These reports are to be prepared using accurate financial information and submitted by the deadline established. Revenues were reported on a cash basis, which materially impacted the quarterly lost revenues reported. Questioned costs: None. Context: The period two and period three provider relief fund reports were tested. The District selected option 1 to report lost revenues based on quarterly actuals. A material error in the calculation of the patient service revenue for the quarters reported was identified. This included the use of cash collections rather than the District?s normal method of accounting, accrual basis, materially impacting the quarterly lost revenues reported. Effect: Errors were made in reporting quarterly Total revenue/Net Charges from Patient Care for each year, 2019, 2020, and 2021. Lost revenue was not accurately reported. However, the District utilized allowable costs for Period 2 and 3 funding received, so that no lost revenues were utilized as a basis for the funds received, and as such, there were no questioned costs. Cause: Internal controls of compliance were not in place to ensure the District properly reported revenue. The District selected option one and did not accurately report revenue on the accrual basis. Recommendation: Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Identification as a repeat finding: This is a repeat finding. See 2021-002. Views of responsible officials and planned corrective actions: Management agrees with this finding and will review procedures regarding lost revenue calculations to ensure amounts reported are accurate for future reporting periods. See attached corrective action plan for the District?s response to finding.
Finding 2022-002
2022-002 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Distribution Federal Assistance Listing Number 93.498 U.S. Department of Health and Human Services Criteria: Reporting (45 CFR 75.342) Condition: The District is required to prepare and submit period two and three provider relief fund reporting. These reports are to be prepared using accurate financial information and submitted by the deadline established. Revenues were reported on a cash basis, which materially impacted the quarterly lost revenues reported. Questioned costs: None. Context: The period two and period three provider relief fund reports were tested. The District selected option 1 to report lost revenues based on quarterly actuals. A material error in the calculation of the patient service revenue for the quarters reported was identified. This included the use of cash collections rather than the District?s normal method of accounting, accrual basis, materially impacting the quarterly lost revenues reported. Effect: Errors were made in reporting quarterly Total revenue/Net Charges from Patient Care for each year, 2019, 2020, and 2021. Lost revenue was not accurately reported. However, the District utilized allowable costs for Period 2 and 3 funding received, so that no lost revenues were utilized as a basis for the funds received, and as such, there were no questioned costs. Cause: Internal controls of compliance were not in place to ensure the District properly reported revenue. The District selected option one and did not accurately report revenue on the accrual basis. Recommendation: Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Identification as a repeat finding: This is a repeat finding. See 2021-002. Views of responsible officials and planned corrective actions: Management agrees with this finding and will review procedures regarding lost revenue calculations to ensure amounts reported are accurate for future reporting periods. See attached corrective action plan for the District?s response to finding.