Audit 299640

FY End

2023-06-30

Total Expended

$3.24M

Findings

4

Programs

1

Organization: Blue Ridge Healthcare Hospitals, INC (NC)

Year: 2023 Accepted: 2024-03-28

Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
387474	2023-001	Significant Deficiency	-	B
387475	2023-001	Significant Deficiency	-	B
963916	2023-001	Significant Deficiency	-	B
963917	2023-001	Significant Deficiency	-	B

ALN	Program	Spent	Major	Findings
93.498	Provider Relief Fund	$1.14M	Yes	1

Contacts

Name	Title	Type
EH2DYRM7YEG9	Pat Moll	Auditee
8285805003	Jordan Miller	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. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Any negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. During the year ended June 30, 2023, BRHC did not make any subrecipient payments with the federal funds listed in the schedule of expenditures of federal awards. De Minimis Rate Used: N Rate Explanation: BRHC has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Blue Ridge HealthCare System, Inc. dba: Blue Ridge Healthcare (BRHC), 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 2 CFR 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 BRHC, it is not intended to and does not present the net position, changes in net position, or cash flows of BRHC. No revenue was recognized from the Provider Relief Fund for the year ended June 30, 2023 and the six months ended June 30, 2022. The Schedule includes Provider Relief Funds of approximately $3,244,000 that were received in Period 4 in accordance with the requirements of the compliance supplement for assistance listing number 93.498.

Finding Details

Finding 2023-001

Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Provider Relief Funding Assistance Listing Number: 93.498 Award Period: July 1, 2022 through June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipients only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: During our testing, we noted that the Organization used an incorrect price per unit for 27 of 41 disbursement selections. Questioned costs: $66,582 Context: During our testing, we noted that the Organization used an incorrect price per unit for 27 of 41 disbursement selections. Cause: The Organization's inventory management system was not being updated with the current cost per unit. The expense is based on the purchase order and the inventory was adjusted when the actual invoice was received, however; the inventory adjustment does not get posted to the original line item. Effect: The information in the submission could be incorrect. Recommendation: We recommend the Organization review calculations to ensure that the proper amounts are used. Views of responsible officials: There is no disagreement with the audit finding.

Finding 2023-001

Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Provider Relief Funding Assistance Listing Number: 93.498 Award Period: July 1, 2022 through June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipients only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: During our testing, we noted that the Organization used an incorrect price per unit for 27 of 41 disbursement selections. Questioned costs: $66,582 Context: During our testing, we noted that the Organization used an incorrect price per unit for 27 of 41 disbursement selections. Cause: The Organization's inventory management system was not being updated with the current cost per unit. The expense is based on the purchase order and the inventory was adjusted when the actual invoice was received, however; the inventory adjustment does not get posted to the original line item. Effect: The information in the submission could be incorrect. Recommendation: We recommend the Organization review calculations to ensure that the proper amounts are used. Views of responsible officials: There is no disagreement with the audit finding.

Finding 2023-001

Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Provider Relief Funding Assistance Listing Number: 93.498 Award Period: July 1, 2022 through June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipients only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: During our testing, we noted that the Organization used an incorrect price per unit for 27 of 41 disbursement selections. Questioned costs: $66,582 Context: During our testing, we noted that the Organization used an incorrect price per unit for 27 of 41 disbursement selections. Cause: The Organization's inventory management system was not being updated with the current cost per unit. The expense is based on the purchase order and the inventory was adjusted when the actual invoice was received, however; the inventory adjustment does not get posted to the original line item. Effect: The information in the submission could be incorrect. Recommendation: We recommend the Organization review calculations to ensure that the proper amounts are used. Views of responsible officials: There is no disagreement with the audit finding.

Finding 2023-001

Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Provider Relief Funding Assistance Listing Number: 93.498 Award Period: July 1, 2022 through June 30, 2023 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipients only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: During our testing, we noted that the Organization used an incorrect price per unit for 27 of 41 disbursement selections. Questioned costs: $66,582 Context: During our testing, we noted that the Organization used an incorrect price per unit for 27 of 41 disbursement selections. Cause: The Organization's inventory management system was not being updated with the current cost per unit. The expense is based on the purchase order and the inventory was adjusted when the actual invoice was received, however; the inventory adjustment does not get posted to the original line item. Effect: The information in the submission could be incorrect. Recommendation: We recommend the Organization review calculations to ensure that the proper amounts are used. Views of responsible officials: There is no disagreement with the audit finding.