FAC Explorer

Audit 296291

FY End
2022-06-30
Total Expended
$32.68M
Findings
2
Programs
9
Organization: University of Kansas Hospital Authority (KS)
Year: 2022 Accepted: 2024-03-21
Auditor: Forvis LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
382705 2022-002 Material Weakness Yes AE
959147 2022-002 Material Weakness Yes AE

Programs

ALN Program Spent Major Findings
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $13.60M Yes 0
93.461 Covid-19 Testing for the Uninsured $5.94M Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $5.62M Yes 0
93.498 Provider Relief Fund $5.56M Yes 0
93.788 Opioid Str $702,479 - 0
93.914 Hiv Emergency Relief Project Grants $427,955 - 0
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $386,614 - 0
93.211 Telehealth Programs $347,700 - 0
17.720 Disability Employment Policy Development $106,358 - 0

Contacts

Name Title Type
QGWZT63766L6 Mark Short Auditee
9132753624 Ryan O'Grady 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 University of Kansas Hospital Authority has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance as the University of Kansas Hospital Authority either uses its negotiated indirect cost rate or the indirect cost rate agreed upon through the grant agreement. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal awards activity of the University of Kansas Hospital Authority under programs of the federal government for the year ended June 30, 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 University of Kansas Hospital Authority, it is not intended to and does not present the financial position, results of operations, changes in net position, or cash flows of the University of Kansas Hospital 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 University of Kansas Hospital Authority has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance as the University of Kansas Hospital Authority either uses its negotiated indirect cost rate or the indirect cost rate agreed upon through the grant agreement. The University of Kansas Hospital Authority did not have any federal loan programs during the year ended June 30, 2022.
Title: Protective Protective Equipment 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 University of Kansas Hospital Authority has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance as the University of Kansas Hospital Authority either uses its negotiated indirect cost rate or the indirect cost rate agreed upon through the grant agreement. The University of Kansas Hospital Authority did not received any donated Personal Protective Equipment (PPE) during the year ended June 30, 2022, (Unaudited).
Title: Restatement 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 University of Kansas Hospital Authority has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance as the University of Kansas Hospital Authority either uses its negotiated indirect cost rate or the indirect cost rate agreed upon through the grant agreement. This Schedule has been restated due to the overstatement of Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution payments under the Assistance Listing Number 93.498. Changes from the previously issued Schedule include a decrease in Assistance Listing Number 93.498 payments reported from $19,346,020 to $5,555,689. This Schedule has also been restated due to an understatement of HIV Emergency Relief Project Grant funds under the Assistance Listing Number 93.914. Changes to the previously issued Schedule include an increase in Assistance Listing Number 93.914 of $66,535 from the previously reported amount. In addition, this Schedule has been restated due to the omission of the COVID-19 Claims Reimbursement for the Uninsured Program payments under the Assistance Listing Number 93.461. Changes from the previously issued Schedule include the addition of expenditures in Assistance Listing Number 93.461 payments reported of $5,935,017.

Finding Details

Finding 2022-002
Department of Health and Human Services HRSA COVID-19 Claims HRSA COVID-19 Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund Assistance Listing 93.461 Program Year 2022 Finding: 2022-002 Criteria: Activities Allowed or Unallowed and Eligibility – Per 2 CFR Part 200, services must be for individuals, who at the time the eligible services were provided, were uninsured as described in the terms and conditions. Condition: The Authority received program funds for three patients who had insurance coverage. Questioned Costs: Known questioned costs are $230 calculated as the amount of federal funds received for individuals who had insurance at the time of service. Context: We tested 40 claims billed to the federal program during 2022, from a total population of 27,170 claims billed to the federal program. The sample was not intended to be, and was not, a statistically valid sample. Three patients were initially considered uninsured, and the claims were billed to the federal program. It was later determined that the patients had insurance coverage; and was not eligible for this program. Effect or Potential Effect: Program funds were drawn to cover claims for patients who had insurance. Cause: Internal controls were not adequately designed and implemented to ensure compliance with the program requirements. Identification as a Repeat Finding: Is a repeat finding. See 2021-002. Recommendation: We recommend implementing controls to ensure review of patient insurance coverage and that the refund process is completed timely.
Finding 2022-002
Department of Health and Human Services HRSA COVID-19 Claims HRSA COVID-19 Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund Assistance Listing 93.461 Program Year 2022 Finding: 2022-002 Criteria: Activities Allowed or Unallowed and Eligibility – Per 2 CFR Part 200, services must be for individuals, who at the time the eligible services were provided, were uninsured as described in the terms and conditions. Condition: The Authority received program funds for three patients who had insurance coverage. Questioned Costs: Known questioned costs are $230 calculated as the amount of federal funds received for individuals who had insurance at the time of service. Context: We tested 40 claims billed to the federal program during 2022, from a total population of 27,170 claims billed to the federal program. The sample was not intended to be, and was not, a statistically valid sample. Three patients were initially considered uninsured, and the claims were billed to the federal program. It was later determined that the patients had insurance coverage; and was not eligible for this program. Effect or Potential Effect: Program funds were drawn to cover claims for patients who had insurance. Cause: Internal controls were not adequately designed and implemented to ensure compliance with the program requirements. Identification as a Repeat Finding: Is a repeat finding. See 2021-002. Recommendation: We recommend implementing controls to ensure review of patient insurance coverage and that the refund process is completed timely.