Audit 300014

FY End
2023-06-30
Total Expended
$19.46M
Findings
2
Programs
5
Year: 2023 Accepted: 2024-03-28

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
388235 2023-001 Significant Deficiency - L
964677 2023-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $16.26M Yes 0
93.498 Covid-19 Provider Relief Funds $3.06M Yes 1
84.268 Federal Direct Student Loans $85,348 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $37,237 - 0
84.063 Federal Pell Grant Program $16,907 - 0

Contacts

Name Title Type
K6K2A2MMHKQ8 Garrett Richardson Auditee
4127496759 Lacey Anderson Auditor
No contacts on file

Notes to SEFA

Title: 1. Basis of Accounting Accounting Policies: Basis of Presentation—The accompanying Consolidated Schedule of Expenditures of Federal Awards (the “Schedule” or “SEFA”) includes the federal grant activity of Heritage Valley under programs of the federal government for the year ended June 30, 2023. The information in the 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. Summary of Significant Accounting Policies—Expenditures reported on the Schedule are presented 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. Heritage Valley is not a subrecipient of any federal funds, nor passes federal funds to a subrecipient. De Minimis Rate Used: N Rate Explanation: Heritage Valley does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance. Basis of Presentation—The accompanying Consolidated Schedule of Expenditures of Federal Awards (the “Schedule” or “SEFA”) includes the federal grant activity of Heritage Valley under programs of the federal government for the year ended June 30, 2023. The information in the 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. Summary of Significant Accounting Policies—Expenditures reported on the Schedule are presented 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. Heritage Valley is not a subrecipient of any federal funds, nor passes federal funds to a subrecipient.
Title: 2. De minimis Cost Rate Accounting Policies: Basis of Presentation—The accompanying Consolidated Schedule of Expenditures of Federal Awards (the “Schedule” or “SEFA”) includes the federal grant activity of Heritage Valley under programs of the federal government for the year ended June 30, 2023. The information in the 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. Summary of Significant Accounting Policies—Expenditures reported on the Schedule are presented 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. Heritage Valley is not a subrecipient of any federal funds, nor passes federal funds to a subrecipient. De Minimis Rate Used: N Rate Explanation: Heritage Valley does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance. Heritage Valley does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance.
Title: 3. Donated Personal Protective Equipment (Unaudited) Accounting Policies: Basis of Presentation—The accompanying Consolidated Schedule of Expenditures of Federal Awards (the “Schedule” or “SEFA”) includes the federal grant activity of Heritage Valley under programs of the federal government for the year ended June 30, 2023. The information in the 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. Summary of Significant Accounting Policies—Expenditures reported on the Schedule are presented 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. Heritage Valley is not a subrecipient of any federal funds, nor passes federal funds to a subrecipient. De Minimis Rate Used: N Rate Explanation: Heritage Valley does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance. For the year ended June 30, 2023, the fair value of donated personal protective equipment received by the System was $0.
Title: 4. Provider Relief Funds Accounting Policies: Basis of Presentation—The accompanying Consolidated Schedule of Expenditures of Federal Awards (the “Schedule” or “SEFA”) includes the federal grant activity of Heritage Valley under programs of the federal government for the year ended June 30, 2023. The information in the 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. Summary of Significant Accounting Policies—Expenditures reported on the Schedule are presented 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. Heritage Valley is not a subrecipient of any federal funds, nor passes federal funds to a subrecipient. De Minimis Rate Used: N Rate Explanation: Heritage Valley does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance. The Provider Relief Funds included in the Schedule were received by the following entities (legal name and tax identification number): Legal Entity Name Heritage Valley Health System, Inc Tax Identification Number 25-1441518
Title: 5. Commitments and Contingencies Accounting Policies: Basis of Presentation—The accompanying Consolidated Schedule of Expenditures of Federal Awards (the “Schedule” or “SEFA”) includes the federal grant activity of Heritage Valley under programs of the federal government for the year ended June 30, 2023. The information in the 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. Summary of Significant Accounting Policies—Expenditures reported on the Schedule are presented 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. Heritage Valley is not a subrecipient of any federal funds, nor passes federal funds to a subrecipient. De Minimis Rate Used: N Rate Explanation: Heritage Valley does not elect to use the de minimis indirect cost rate allowed under the Uniform Guidance. Heritage Valley participates in numerous federal grant programs, which are governed by various rules and regulations of the grantor agencies. Costs charged to the respective grant programs are subject to audit and adjustments by the grantor agencies. While Heritage Valley believes it has complied with all of the rules and regulations, to the extent Heritage Valley has not complied with rules and regulations governing the grants, refund of any money received may be required and the collectability of any related receivable at June 30, 2023, may be impaired.

Finding Details

Finding 2023-001—Significant Deficiency in Internal Controls over Compliance and Noncompliance Finding: ALN#93.498 Provider Relief Fund and American Rescue Plan Rural Distribution Criteria - In pursuant with the Post-Payment Notice of Reporting Requirements, the Health Resources and Services Administration (HRSA) mandates a series of special reporting timelines corresponding to applicable Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural payments received period. Reporting must be completed and submitted to HRSA by the last date of the reporting time period. Condition and Context - For PRF payments received between January and June 2022 ("PRF5"), Heritage Valley completed and reviewed the report draft internally but failed to submit the report officially in HRSA reporting portal by the due date of September 30, 2023. This was the only instance of PRF report overdue identified. To date, Heritage Valley has been in close contact with HRSA to seek approval for Request to Report Late Due to Extenuating Circumstances and such approval has been made verbally. Heritage Valley is waiting to take next steps upon formal notification from HRSA. Questioned Costs - none Cause- The reporting deadline was missed because the employee was solely responsible for PRF reporting in the HRSA portal resigned two months before the due date of September 30, 2023. Effect - Heritage Valley failed to establish proper process and controls to ensure the report was submitted timely despite that the report draft was reviewed for completeness and accuracy. Recommendation - Heritage Valley should design and implement internal controls addressing the timeliness of federal reporting requirement. Views of Responsible Officials - See Corrective Action Plan Part IV- Prior Year Findings N/A
Finding 2023-001—Significant Deficiency in Internal Controls over Compliance and Noncompliance Finding: ALN#93.498 Provider Relief Fund and American Rescue Plan Rural Distribution Criteria - In pursuant with the Post-Payment Notice of Reporting Requirements, the Health Resources and Services Administration (HRSA) mandates a series of special reporting timelines corresponding to applicable Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural payments received period. Reporting must be completed and submitted to HRSA by the last date of the reporting time period. Condition and Context - For PRF payments received between January and June 2022 ("PRF5"), Heritage Valley completed and reviewed the report draft internally but failed to submit the report officially in HRSA reporting portal by the due date of September 30, 2023. This was the only instance of PRF report overdue identified. To date, Heritage Valley has been in close contact with HRSA to seek approval for Request to Report Late Due to Extenuating Circumstances and such approval has been made verbally. Heritage Valley is waiting to take next steps upon formal notification from HRSA. Questioned Costs - none Cause- The reporting deadline was missed because the employee was solely responsible for PRF reporting in the HRSA portal resigned two months before the due date of September 30, 2023. Effect - Heritage Valley failed to establish proper process and controls to ensure the report was submitted timely despite that the report draft was reviewed for completeness and accuracy. Recommendation - Heritage Valley should design and implement internal controls addressing the timeliness of federal reporting requirement. Views of Responsible Officials - See Corrective Action Plan Part IV- Prior Year Findings N/A