FAC Explorer

Audit 295333

FY End
2023-06-30
Total Expended
$21.01M
Findings
2
Programs
2
Organization: Corry Memorial Hospital Association D/b/a Lecom Health Corry Memorial (PA)
Year: 2023 Accepted: 2024-03-15
Auditor: Baker Tilley US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
380546 2023-001 Material Weakness - L
956988 2023-001 Material Weakness - L

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $20.09M Yes 0
93.498 Provider Relief Fund $925,113 Yes 1

Contacts

Name Title Type
NL6BAYJGX3M5 Tim McGahen Auditee
8146644641 James Raley 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 with the exception of the amounts presented in relation to the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) and the Community Facilities Loans and Grants. 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Hospital has not elected to use the 10% de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Corry Memorial Hospital Association d/b/a LECOM Health Corry Memorial Hospital and Subsidiaries (the Hospital) under programs of the federal government for the year ended June 30, 2023. 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 balance sheet, statement of operations and changes in net assets or cash flows of the Hospital.
Title: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting with the exception of the amounts presented in relation to the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) and the Community Facilities Loans and Grants. 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Hospital has not elected to use the 10% de minimis indirect cost rate. For the U.S. Department of Health and Human Service (HHS) award related to the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) program, the HHS has indicated the amounts on the Schedule be reported corresponding to reporting requirements of the Health Resources and Services Administration (HRSA) PRF Reporting Portal. Payments from the HHS for PRF are assigned to 'Payment Received Periods' (each, a Period) based upon the date each payment from the PRF was received. Each Period has a specified Period of Availability and timing of reporting requirements. Entities report into the HRSA PRF Reporting Portal after each Period's deadline to use the funds (i.e., after the end of the Period of Availability). The Schedule includes $925,113 received from the HHS between July 1, 2021, and December 31, 2021. In accordance with guidance from the HHS, these amounts were presented as Period 4. Such amounts were recognized as other operating revenue in The Organization's financial statements in the year ended June 30, 2022. The tax identification number of the Organization is 250987222.
Title: Summary of U.S. Department of Agriculture Community Facilities Loans and Grants Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting with the exception of the amounts presented in relation to the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) and the Community Facilities Loans and Grants. 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Hospital has not elected to use the 10% de minimis indirect cost rate. The Schedule includes $20,088,587 received from the USDA. In accordance with guidance from the USDA, these amounts represent the outstanding loans at the beginning of the audit period (i.e., the June 30, 2022, balance). There were no interest subsidies, cash, administrative cost allowances or new loans made or received during the year ended June 30, 2023 (the audit period covered by the Schedule). The balance of the loan as of June 30, 2023 amounted to $19,708,856.

Finding Details

Finding 2023-001
Federal Program: COVID -19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number: 93.498 Federal Agency: U.S. Department of Health and Human Services Award Number: N/A Compliance Requirement: Reporting Questioned Costs: None noted Criteria: Non-federal entities in receipt of federal funds must comply with the requirements of 2 CFR 200.303(a), which require an entity to establish and maintain effective internal control over the Federal award to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) payments must be used for allowable expenses and lost revenue described in the PRF terms and conditions and specified in guidance issued by the U.S. Department of Health and Human Services. Activities allowed have been defined as expense used to prevent, prepare for, and respond to coronavirus, domestically or internationally, for necessary expenses to reimburse, through grants or other mechanisms, eligible health care providers for health care related expenses or lost revenues that are attributable to coronavirus. Additionally, all recipients of PRF payments must comply with the reporting requirements described in the PRF terms and conditions and specified in directions issued by the U.S. Department of Health and Human Services. Condition and Context: The Organization did not complete the PRF reporting in accordance with the U.S. Department of Health and Human Services guidance. We noted that the Organization erroneously excluded certain transactions from the lost revenue calculation, resulting in lost revenues being overstated $95,765. The Organization reported lost revenues amounting to $471,219 on distributions totaling $925,113. The Organization had excess lost revenues from previous periods available to be used through June 30, 2023 amounting to $1,218,904. Effect: The amounts reported to HRSA were not in accordance with established U.S. Department of Health and Human Services guidance. Cause: The Organization's review was inadequate. Recommendation: We recommend that management implement procedures to ensure that the most recent guidance is reviewed and understood, and that information used in accumulating allowable lost revenues is reviewed, with errors addressed prior to submission. Views of Responsible Officials: The Organization agrees with the finding.
Finding 2023-001
Federal Program: COVID -19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number: 93.498 Federal Agency: U.S. Department of Health and Human Services Award Number: N/A Compliance Requirement: Reporting Questioned Costs: None noted Criteria: Non-federal entities in receipt of federal funds must comply with the requirements of 2 CFR 200.303(a), which require an entity to establish and maintain effective internal control over the Federal award to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) payments must be used for allowable expenses and lost revenue described in the PRF terms and conditions and specified in guidance issued by the U.S. Department of Health and Human Services. Activities allowed have been defined as expense used to prevent, prepare for, and respond to coronavirus, domestically or internationally, for necessary expenses to reimburse, through grants or other mechanisms, eligible health care providers for health care related expenses or lost revenues that are attributable to coronavirus. Additionally, all recipients of PRF payments must comply with the reporting requirements described in the PRF terms and conditions and specified in directions issued by the U.S. Department of Health and Human Services. Condition and Context: The Organization did not complete the PRF reporting in accordance with the U.S. Department of Health and Human Services guidance. We noted that the Organization erroneously excluded certain transactions from the lost revenue calculation, resulting in lost revenues being overstated $95,765. The Organization reported lost revenues amounting to $471,219 on distributions totaling $925,113. The Organization had excess lost revenues from previous periods available to be used through June 30, 2023 amounting to $1,218,904. Effect: The amounts reported to HRSA were not in accordance with established U.S. Department of Health and Human Services guidance. Cause: The Organization's review was inadequate. Recommendation: We recommend that management implement procedures to ensure that the most recent guidance is reviewed and understood, and that information used in accumulating allowable lost revenues is reviewed, with errors addressed prior to submission. Views of Responsible Officials: The Organization agrees with the finding.