FAC Explorer

Audit 295715

FY End
2021-12-31
Total Expended
$7.12M
Findings
2
Programs
1
Organization: Claxton Hepburn Medical Center (NY)
Year: 2021 Accepted: 2024-03-19
Auditor: Bonadio & CO LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
381006 2021-002 Material Weakness - P
957448 2021-002 Material Weakness - P

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $7.12M Yes 1

Contacts

Name Title Type
CE9BS1TKEE85 Sharon Navarra Auditee
3157135355 Jonathan Miller Auditor
No contacts on file

Notes to SEFA

Title: GENERAL 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. De Minimis Rate Used: N Rate Explanation: The Hospital does not allocate indirect costs to federal programs, and as such, does not elect to apply the 10% de minimis rate permitted by the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) has been prepared in accordance with accounting principles generally accepted in the United States of America. Amounts included in the Schedule are actual expenditures for the year ended December 31, 2021. The accompanying Schedule presents the activity of all federal award programs of Claxton-Hepburn Medical Center. 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 Claxton- Hepburn Medical Center’s operations, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Claxton-Hepburn Medical Center.
Title: BASIS OF ACCOUNTING 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. De Minimis Rate Used: N Rate Explanation: The Hospital does not allocate indirect costs to federal programs, and as such, does not elect to apply the 10% de minimis rate permitted by the Uniform Guidance. 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.
Title: INDIRECT COSTS 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. De Minimis Rate Used: N Rate Explanation: The Hospital does not allocate indirect costs to federal programs, and as such, does not elect to apply the 10% de minimis rate permitted by the Uniform Guidance. The Hospital does not allocate indirect costs to federal programs, and as such, does not elect to apply the 10% de minimis rate permitted by the Uniform Guidance.
Title: PROVIDER RELIEF FUNDS (PRF) 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. De Minimis Rate Used: N Rate Explanation: The Hospital does not allocate indirect costs to federal programs, and as such, does not elect to apply the 10% de minimis rate permitted by the Uniform Guidance. The amount included in the schedule of expenditures of federal awards is based upon the December 30, 2021 PRF report.

Finding Details

Finding 2021-002
Program U.S. Department of Health and Human Services; COVID-19 - Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution – Assistance Listing No. 93.498; Grant Period -Year Ended December 31, 2021. Condition Support for and the approval of expenditures of goods and services charged to the Provider Relief Fund program could not be identified. In addition, the Company did not have well documented job responsibilities and there was not adequate documentation of employee time charged to the PRF program. Criteria Controls should be in place to ensure that the expenditures of Provider Relief Funds were used to prevent, prepare for, and respond to the effects of COVID-19. Cause The Company’s accounting and financial practices were not well designed, including the maintenance of employee timecards. Effect Because of the inadequately designed internal control structure, controls were not in place to ensure that the expenditures of Provider Relief Funds were used to prevent, prepare for, and respond to the effects of COVID-19. Recommendation The Company should implement controls to ensure that the procurement and expenditure of goods and services, including staff salaries, are valid and are allocated and charged to appropriate department and federal program. Views of Responsible Officials and Planned Corrective Actions During the period under review, a prior management team was in place. Since that time, the Company’s accounting, payroll, and finance leadership has experienced significant turnover. The current leadership team has worked diligently to address internal control structure of the accounting, payroll, and purchasing processes. The internal control structure is perpetually assessed for additional changes that would enhance internal controls; however, the process continues to prove as a challenge due to the aging accounting system and inherent limitations in the software.
Finding 2021-002
Program U.S. Department of Health and Human Services; COVID-19 - Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution – Assistance Listing No. 93.498; Grant Period -Year Ended December 31, 2021. Condition Support for and the approval of expenditures of goods and services charged to the Provider Relief Fund program could not be identified. In addition, the Company did not have well documented job responsibilities and there was not adequate documentation of employee time charged to the PRF program. Criteria Controls should be in place to ensure that the expenditures of Provider Relief Funds were used to prevent, prepare for, and respond to the effects of COVID-19. Cause The Company’s accounting and financial practices were not well designed, including the maintenance of employee timecards. Effect Because of the inadequately designed internal control structure, controls were not in place to ensure that the expenditures of Provider Relief Funds were used to prevent, prepare for, and respond to the effects of COVID-19. Recommendation The Company should implement controls to ensure that the procurement and expenditure of goods and services, including staff salaries, are valid and are allocated and charged to appropriate department and federal program. Views of Responsible Officials and Planned Corrective Actions During the period under review, a prior management team was in place. Since that time, the Company’s accounting, payroll, and finance leadership has experienced significant turnover. The current leadership team has worked diligently to address internal control structure of the accounting, payroll, and purchasing processes. The internal control structure is perpetually assessed for additional changes that would enhance internal controls; however, the process continues to prove as a challenge due to the aging accounting system and inherent limitations in the software.