Audit 26844

FY End

2022-12-31

Total Expended

$1.05M

Findings

2

Programs

2

Organization: Swift County-Benson Hospital (MN)

Year: 2022 Accepted: 2023-10-01

Auditor: Eide Bailly LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
31320	2022-002	Significant Deficiency	Yes	ABL
607762	2022-002	Significant Deficiency	Yes	ABL

ALN	Program	Spent	Major	Findings
93.498	Provider Relief Fund	$984,648	Yes	1
93.155	Rural Health Research Centers	$65,326	-	0

Contacts

Name	Title	Type
W3X8DSSQ3NK1	Andrea Miller	Auditee
3202512700	Ashley Brandt-Duda	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. 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 Organization does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Swift County-Benson Hospital (the Organization) 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 Organization, it is not intended to and does not present the net position, changes in net position, or cash flows of the Organization.

Title: COVID-19 Provider Relief Funds and American Rescue Plan Rural Distribution Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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 Organization does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. The Organization received amounts from the U.S. Department of Health and Human Services (HHS) through the COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution program (Federal Financial Assistance Listing #93.498) during the years ended December 31, 2021 and 2020. The Organization incurred eligible expenditures and, therefore, recognized revenues totaling $2,753,951 and $1,989,784 for the years ended December 31, 2021 and 2020, respectively, on the financial statements. In accordance with the 2021 Compliance Supplement, the PRF expenditures recognized on the Schedule are based on the reporting to HHS for Period 1, defined as payments received during April 10, 2020, through June 30, 2020, and Period 2, defined as payments received during July 1, 2020, to December 31, 2020, of $3,759,087, plus interest earned of $1,385, as required under the PRF program. In accordance with the 2022 compliance supplement, the PRF expenditures recognized on the Schedule are based on the reporting to HHS for Period 4, defined as payments received during July 1,2021, to December 31, 2021, of $984,648.The total amount of PRF expenditures included on the Schedule requires management to make estimates and assumptions that affect the reported amounts. Accordingly, such expenditures are considered a significant estimate. Estimates and assumptions may include reducing actual expenses by amounts that have been reimbursed or are obligated to be reimbursed by other sources and estimating marginal increases in expensesrelated to coronavirus. Actual amounts could differ from those estimates.

Finding Details

Finding 2022-002

2022-002 Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #411670269 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Reporting Significant Deficiency in Internal Control over Compliance 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 Organization?s expense workbook and special reports submitted to the Department of Health and Human Services for Period 4 were not reviewed and approved by a separate individual outside of the preparer. Cause: The Organization did not have an adequate internal control policy in place to ensure review and approval over the final expenditure listing or preparation of HHS Period 4 reporting were documented. Effect: The lack of adequate policies governing review and approval increases the risk that employees participating in the federal award administration may not be able to detect and correct noncompliance in a timely manner. Questioned Costs: None reported. Context: Key line items were tested on the Period 4 Department of Health and Human Services special report and supporting expense tracker documents. Repeat Finding from Prior Years: Yes, Finding 2021-002. Recommendation: We recommend the Organization implement a control process which includes a secondary review and approval of required reports and internal supporting documents such as the expense tracking. Views of Responsible Officials: Management agrees with the finding.

Finding 2022-002

2022-002 Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #411670269 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and Reporting Significant Deficiency in Internal Control over Compliance 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 Organization?s expense workbook and special reports submitted to the Department of Health and Human Services for Period 4 were not reviewed and approved by a separate individual outside of the preparer. Cause: The Organization did not have an adequate internal control policy in place to ensure review and approval over the final expenditure listing or preparation of HHS Period 4 reporting were documented. Effect: The lack of adequate policies governing review and approval increases the risk that employees participating in the federal award administration may not be able to detect and correct noncompliance in a timely manner. Questioned Costs: None reported. Context: Key line items were tested on the Period 4 Department of Health and Human Services special report and supporting expense tracker documents. Repeat Finding from Prior Years: Yes, Finding 2021-002. Recommendation: We recommend the Organization implement a control process which includes a secondary review and approval of required reports and internal supporting documents such as the expense tracking. Views of Responsible Officials: Management agrees with the finding.