FAC Explorer

Audit 293610

FY End
2023-09-30
Total Expended
$1.21M
Findings
2
Programs
5
Organization: Walter Knox Memorial Hospital Doing Business As Valor Health (ID)
Year: 2023 Accepted: 2024-03-05
Auditor: Dingus Zarecor & Associates PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
372300 2023-001 Significant Deficiency Yes ABL
948742 2023-001 Significant Deficiency Yes ABL

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $714,772 Yes 1
93.155 Rural Health Research Centers $255,217 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $212,119 - 0
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $14,658 - 0
93.301 Small Rural Hospital Improvement Grant Program $10,840 - 0

Contacts

Name Title Type
N6B1UR9HU1A1 Corey Furin Auditee
2083653561 Luke Zarecor Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on this 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. The Hospital has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Hospital has not elected 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 Walter Knox Memorial Hospital doing business as Valor Health, a component unit of Gem County, Idaho (the Hospital), under programs of the federal government for the year ended September 30, 2023. Amounts reported on the Schedule for Federal Assistance Listing Number 93.498 – Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution are based upon the December 31, 2022, Provider Relief Fund report. 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 Hospital, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Hospital.

Finding Details

Finding 2023-001
2023-001 Policies and Procedures for Federal Awards Federal Agency U.S. Department of Health and Human Services Federal Assistance Listing Numbers 93.498 – Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria [ ] Compliance Finding [ X ] Significant Deficiency [ ] Material Weakness Recipients of federal awards should maintain written policies and procedures for the tracking and usage of federal awards. Condition The Hospital did not have written procurement policies and procedures with all of the required elements for federal awards for the year ended September 30, 2023. Context This finding appears to be a systemic problem. Cause Management is still developing and implementing internal controls as of September 30, 2023. Effect There is a risk that federal funds may be expended out of conformity with federal regulations and compliance requirements. Recommendation We recommend the Hospital write policies and procedures for the tracking and usage of federal awards that conform to federal regulations and compliance requirements. Views of responsible officials and planned corrective actions Valor Health completed a policy and procedure in FY23 to satisfy the previous year’s finding, and with this year’s audit it was discovered that additional details and procedures need to be included and outlined. Valor Health will work in collaboration with auditing firm to improve the current policy and procedures to include all the details and items necessary to satisfy this requirement. Auditing firm will supply samples and documents and ensure that we are compliant with this particular finding in the appropriate timeframes. The responsible parties from Valor Health will be the CFO and Controller.
Finding 2023-001
2023-001 Policies and Procedures for Federal Awards Federal Agency U.S. Department of Health and Human Services Federal Assistance Listing Numbers 93.498 – Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria [ ] Compliance Finding [ X ] Significant Deficiency [ ] Material Weakness Recipients of federal awards should maintain written policies and procedures for the tracking and usage of federal awards. Condition The Hospital did not have written procurement policies and procedures with all of the required elements for federal awards for the year ended September 30, 2023. Context This finding appears to be a systemic problem. Cause Management is still developing and implementing internal controls as of September 30, 2023. Effect There is a risk that federal funds may be expended out of conformity with federal regulations and compliance requirements. Recommendation We recommend the Hospital write policies and procedures for the tracking and usage of federal awards that conform to federal regulations and compliance requirements. Views of responsible officials and planned corrective actions Valor Health completed a policy and procedure in FY23 to satisfy the previous year’s finding, and with this year’s audit it was discovered that additional details and procedures need to be included and outlined. Valor Health will work in collaboration with auditing firm to improve the current policy and procedures to include all the details and items necessary to satisfy this requirement. Auditing firm will supply samples and documents and ensure that we are compliant with this particular finding in the appropriate timeframes. The responsible parties from Valor Health will be the CFO and Controller.