FAC Explorer

Audit 27070

FY End
2022-12-31
Total Expended
$5.19M
Findings
2
Programs
2
Organization: Decatur Hospital Authority D/b/a Wise Health System and Affiliates (TX)
Year: 2022 Accepted: 2023-09-28
Auditor: Forvis LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
20565 2022-001 Material Weakness Yes AB
597007 2022-001 Material Weakness Yes AB

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $4.64M Yes 1
93.461 Hrsa Covid-19 Claims Reimbursement for the Uninsured Program and the Covid-19 Coverage Assistance Fund $549,778 - 0

Contacts

Name Title Type
D5LDZQ4KBND6 Todd Scroggins Auditee
9406275921 Andrea Sartin 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 Authority 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 (Schedule) includes the federal award activity of Decatur Hospital Authority d/b/a Wise Health System and Affiliates (Authority) 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 Authority, it is not intended to and does not present the financial position, changes in net position or cash flows of the Authority.
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 Authority has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The Authority did not have any federal loan programs during the year ended December 31, 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 Authority has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. For the year ended December 31, 2022, the Authority received $0 in donated PPE in response to the COVID-19 pandemic.

Finding Details

Finding 2022-001
2022-001 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Federal Assistance Listing No. 93.498 U.S. Department of Health and Human Services Period 3 and Period 4 Expenditures Criteria or Specific Requirement: Activities Allowed/Unallowed and Allowable Costs/Cost Principles (Pub. L. No. 116-136, 134 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622 and 623) Condition: The Authority is required to prepare and submit period three and period four Provider Relief Fund (PRF) reporting. This report is to be prepared using accurate financial information and submitted by the deadline established. Questioned Costs: $358,571; the amount of expenses reported that did not have support. Context: The Authority?s submitted reports included the activity of the Authority and their Nursing Home Facilities (Nursing Homes). There are four separate nursing home management companies that provide services to the Authority?s seven Nursing Homes. One nursing home management company was unable to justify that the expenditures charged to the grant were related to specific uses allowed for the nursing home infection control payments received. Effect: The Authority does not have documentation to support certain expenditures related to nursing home infection control payments that were charged to the PRF grant in period three. These expenses may not be allowable. Cause: The Authority?s internal controls did not ensure detailed listings of expenses charged to PRF were maintained for all Nursing Homes. Identification as a Repeat Finding: Repeat finding 2021-001 Recommendation: Policies and procedures over expenditures charged to federal grants should be modified to ensure documentation is maintained. Responsible Official: Todd Scroggins, Chief Financial Officer (CFO) at the Authority. Planned Corrective Actions: See separate auditee document for detail of corrective action plan.
Finding 2022-001
2022-001 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Federal Assistance Listing No. 93.498 U.S. Department of Health and Human Services Period 3 and Period 4 Expenditures Criteria or Specific Requirement: Activities Allowed/Unallowed and Allowable Costs/Cost Principles (Pub. L. No. 116-136, 134 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622 and 623) Condition: The Authority is required to prepare and submit period three and period four Provider Relief Fund (PRF) reporting. This report is to be prepared using accurate financial information and submitted by the deadline established. Questioned Costs: $358,571; the amount of expenses reported that did not have support. Context: The Authority?s submitted reports included the activity of the Authority and their Nursing Home Facilities (Nursing Homes). There are four separate nursing home management companies that provide services to the Authority?s seven Nursing Homes. One nursing home management company was unable to justify that the expenditures charged to the grant were related to specific uses allowed for the nursing home infection control payments received. Effect: The Authority does not have documentation to support certain expenditures related to nursing home infection control payments that were charged to the PRF grant in period three. These expenses may not be allowable. Cause: The Authority?s internal controls did not ensure detailed listings of expenses charged to PRF were maintained for all Nursing Homes. Identification as a Repeat Finding: Repeat finding 2021-001 Recommendation: Policies and procedures over expenditures charged to federal grants should be modified to ensure documentation is maintained. Responsible Official: Todd Scroggins, Chief Financial Officer (CFO) at the Authority. Planned Corrective Actions: See separate auditee document for detail of corrective action plan.