FAC Explorer

Audit 298227

FY End
2023-06-30
Total Expended
$2.88M
Findings
2
Programs
4
Organization: Salem Memorial District Hospital (MO)
Year: 2023 Accepted: 2024-03-27
Auditor: Forvis LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
385227 2023-003 Significant Deficiency Yes A
961669 2023-003 Significant Deficiency Yes A

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $2.34M Yes 1
93.461 Covid-19 Testing for the Uninsured $274,170 - 0
93.155 Rural Health Research Centers $258,376 - 0
93.301 Small Rural Hospital Improvement Grant Program $11,411 - 0

Contacts

Name Title Type
FQWNHWLZ6HM6 Douglas Hoban Auditee
5737295917 Jean Nyberg Auditor
No contacts on file

Notes to SEFA

Title: Note 1: 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 or other applicable regulatory guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Salem Memorial District 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 Salem Memorial District 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 Salem Memorial District Hospital, it is not intended to and does not present the financial position, changes in net position, or cash flows of Salem Memorial District Hospital
Title: Note 4: 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 or other applicable regulatory guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Salem Memorial District Hospital has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Salem Memorial District Hospital did not have any federal loan programs outstanding at June 30, 2023.
Title: Note 5: Personal Protective Equipment (PPE) (Unaudited) 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 or other applicable regulatory guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Salem Memorial District Hospital has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Personal Protective Equipment (PPE) (Unaudited): Salem Memorial District Hospital did not receive any federally donated PPE during the year ended June 30, 2023.

Finding Details

Finding 2023-003
COVID-19 Provider Relief Fund and American Rescue (ARP) Rural Distribution ALN No. 93.498 U.S. Department of Health and Human Services 2023 Criteria or Specific Requirement – Reporting (45 CFR 75.342) Condition – The Hospital is required to prepare and submit Period 5 provider relief fund reporting. This report is to be prepared using accurate financial information and submitted by the deadline established. Questioned Costs – None. Context – The Period 5 provider relief fund report was tested. The Hospital selected Option iii to report lost revenues. Certain quarterly patient service revenues amounts reported to HHS could not be reconciled to the audited financial statements. Effect – Errors were identified in quarterly lost revenues reported to HHS; however, when these errors are considered, the Hospital’s total Provider Relief Fund payments applied to lost revenues did not change from what was originally reported in Period 5. Cause – The Hospital did not identify certain patient service revenue adjustment accounts in their calculation of lost revenues. Identification as a repeat finding – Is a repeat finding. See 2021-004. Recommendation – Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information.
Finding 2023-003
COVID-19 Provider Relief Fund and American Rescue (ARP) Rural Distribution ALN No. 93.498 U.S. Department of Health and Human Services 2023 Criteria or Specific Requirement – Reporting (45 CFR 75.342) Condition – The Hospital is required to prepare and submit Period 5 provider relief fund reporting. This report is to be prepared using accurate financial information and submitted by the deadline established. Questioned Costs – None. Context – The Period 5 provider relief fund report was tested. The Hospital selected Option iii to report lost revenues. Certain quarterly patient service revenues amounts reported to HHS could not be reconciled to the audited financial statements. Effect – Errors were identified in quarterly lost revenues reported to HHS; however, when these errors are considered, the Hospital’s total Provider Relief Fund payments applied to lost revenues did not change from what was originally reported in Period 5. Cause – The Hospital did not identify certain patient service revenue adjustment accounts in their calculation of lost revenues. Identification as a repeat finding – Is a repeat finding. See 2021-004. Recommendation – Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information.