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Audit 27421

FY End
2022-03-31
Total Expended
$11.44M
Findings
2
Programs
1
Organization: West Wharton County Hospital District (TX)
Year: 2022 Accepted: 2023-05-02
Auditor: Durbin & Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
35515 2022-002 Significant Deficiency - L
611957 2022-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $11.44M Yes 1

Contacts

Name Title Type
SV4JW31FYF53 David Mak Auditee
9795436251 Andrew Castillo Auditor
No contacts on file

Notes to SEFA

Title: SUBRECIPIENTS Accounting Policies: The schedule of expenditures of federal awards (the Schedule) includes the federal award activity of West Wharton County Hospital District (the District) under programs of the federal government for the year ended March 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 activities of the District, it is not intended to and does not present the net position, changes in net position, or cash flows of the District. Expenditures reported in 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District did not provide any federal awards to subrecipients during the year ended March 31, 2022.
Title: PROVIDER RELIEF FUNDS (#93.498) Accounting Policies: The schedule of expenditures of federal awards (the Schedule) includes the federal award activity of West Wharton County Hospital District (the District) under programs of the federal government for the year ended March 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 activities of the District, it is not intended to and does not present the net position, changes in net position, or cash flows of the District. Expenditures reported in 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures under Catalog of Federal Domestic Assistance #93.498, Provider Relief Fund (PRF) applies the guidance of the U.S. Department of Health and Human Services (HHS). For the PRF program, the amount on the Schedule is reported based on the PRF portal submission guidelines. Payments from HHS for the PRF are assigned to one of four Payment Received Periods based upon the date each payment from the PRF was received. Each Period has a specified Period of Availability and timing of reporting requirements. The Schedule includes those qualifying expenditures and/or lost revenues that were reported in the PRF portal for Period 1 (Payment Received Period from April 10, 2020 to June 30, 2020 and Periods of Availability from January 1, 2020 to June 30, 2021) and Period 2 (Payment Received Period from July 1, 2020 to December 31, 2020 and Periods of Availability from January 1, 2020 to December 31, 2021). As such, the amount presented in this Schedule will differ from the amounts presented in the statements of revenues, expenses, and changes in net position.
Title: PERSONAL PROTECTIVE EQUIPMENT (UNAUDITED) Accounting Policies: The schedule of expenditures of federal awards (the Schedule) includes the federal award activity of West Wharton County Hospital District (the District) under programs of the federal government for the year ended March 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 activities of the District, it is not intended to and does not present the net position, changes in net position, or cash flows of the District. Expenditures reported in 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. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. For the year ended March 31, 2022, the District received $-0- in federally donated personal protective equipment in response to the COVID-19 pandemic (unaudited).

Finding Details

Finding 2022-002
2022-002 U.S. Department of Health and Human Services COVID-19 - Provider Relief Fund ("PRF") and American Rescue Plan ("ARP") Rural Distribution - Period 1 and Period 2 Reporting - Assistance Listing Number 93.498 Condition: Management reported expenditures to the U.S. Department of Health and Human Services through the PRF reporting portal for period 1 and period 2 of availability. During the performance of audit procedures, it was noted management charged lost revenue to the PRF and ARP programs during the first and second periods of availability. However, the period 1 and period 2 portal reports did not report lost revenue. Criteria: Specific terms and conditions were provided by the U.S. Department of Health and Human Services associated with the PRF and ARP programs. In accordance with the terms and conditions, entities receiving PRF payments in excess of $10,000 in the aggregate during a payment received period must report on the use of funds in each applicable reporting period. Management is responsible for establishing processes and procedures over compliance with the reporting requirements related to the PRF and ARP programs. Cause: Proper controls were not established to allow management to accurately report use of PRF and ARP program funds to the U.S. Department of Health and Human Services. Effect: The expenditures reported in the period 1 and period 2 PRF and ARP portal reports were not accurate. Allowable lost revenue was not reported in accordance with the PRF and ARP program terms and conditions. Recommendation: Management should establish and implement processes and procedures to allow for the accurate reporting of use funds in accordance with the PRF and ARP programs terms and conditions. Management should also submit corrected portal reports for period 1 and period 2 to the U.S. Department of Health and Human Services. Views of Responsible Officials and Planned Corrective Actions: During the District's FY 2022 ended March 31, 2022, all nursing homes that were participants in the Quality Incentive Payment Program with the District received Federal governmental payments from the PRF and ARP programs. These types of payments to the nursing homes are rare and almost all of the nursing homes were inexperienced in handling the accounting and reporting aspects of these federal programs. The District will create a monthly monitoring process to ensure that all participating nursing homes have reliable systems in place to accurately report financial matters related to the receipts, expenditures, and lost revenue that are required to be reported in compliance with all federal grant programs.
Finding 2022-002
2022-002 U.S. Department of Health and Human Services COVID-19 - Provider Relief Fund ("PRF") and American Rescue Plan ("ARP") Rural Distribution - Period 1 and Period 2 Reporting - Assistance Listing Number 93.498 Condition: Management reported expenditures to the U.S. Department of Health and Human Services through the PRF reporting portal for period 1 and period 2 of availability. During the performance of audit procedures, it was noted management charged lost revenue to the PRF and ARP programs during the first and second periods of availability. However, the period 1 and period 2 portal reports did not report lost revenue. Criteria: Specific terms and conditions were provided by the U.S. Department of Health and Human Services associated with the PRF and ARP programs. In accordance with the terms and conditions, entities receiving PRF payments in excess of $10,000 in the aggregate during a payment received period must report on the use of funds in each applicable reporting period. Management is responsible for establishing processes and procedures over compliance with the reporting requirements related to the PRF and ARP programs. Cause: Proper controls were not established to allow management to accurately report use of PRF and ARP program funds to the U.S. Department of Health and Human Services. Effect: The expenditures reported in the period 1 and period 2 PRF and ARP portal reports were not accurate. Allowable lost revenue was not reported in accordance with the PRF and ARP program terms and conditions. Recommendation: Management should establish and implement processes and procedures to allow for the accurate reporting of use funds in accordance with the PRF and ARP programs terms and conditions. Management should also submit corrected portal reports for period 1 and period 2 to the U.S. Department of Health and Human Services. Views of Responsible Officials and Planned Corrective Actions: During the District's FY 2022 ended March 31, 2022, all nursing homes that were participants in the Quality Incentive Payment Program with the District received Federal governmental payments from the PRF and ARP programs. These types of payments to the nursing homes are rare and almost all of the nursing homes were inexperienced in handling the accounting and reporting aspects of these federal programs. The District will create a monthly monitoring process to ensure that all participating nursing homes have reliable systems in place to accurately report financial matters related to the receipts, expenditures, and lost revenue that are required to be reported in compliance with all federal grant programs.