FAC Explorer

Audit 301841

FY End
2023-06-30
Total Expended
$37.70M
Findings
2
Programs
9
Organization: St. Claire Regional Medical Center, Inc. (KY)
Year: 2023 Accepted: 2024-04-01
Auditor: Blue & Company LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
391207 2023-001 Material Weakness Yes C
967649 2023-001 Material Weakness Yes C

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $27.29M Yes 0
93.498 Provider Relief Fund $8.33M Yes 0
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $1.24M Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $273,225 - 0
32.006 Covid-19 Telehealth Program $223,383 - 0
93.353 21st Century Cures Act - Beau Biden Cancer Moonshot $184,409 - 0
93.107 Area Health Education Centers Point of Service Maintenance and Enhancement Awards $74,966 - 0
93.113 Environmental Health $50,015 - 0
93.130 Cooperative Agreements to States/territories for the Coordination and Development of Primary Care Offices $34,083 - 0

Contacts

Name Title Type
N22NA3NU6BN6 Chris McClurg Auditee
6067836500 Steve Jones 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. De Minimis Rate Used: N Rate Explanation: N/A - not used. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of St. Claire Medical Center, Inc.’s and its affiliate (the “Hospital”) (a nonprofit organization) under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with 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 Hospital it is not intended to and does not present the financial position, changes in net position, or cash flows of the Hospital.
Title: Loans Outstanding 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: N/A - not used. The federal programs listed subsequently are administered directly by the Hospital, and balances and transactions relating to these programs are included in the Hospital’s consolidated financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at June 30, 2023, consists of:
Title: Provider Relief Funds 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: N/A - not used. Expenditures reported on the Schedule for the Provider Relief Funds ("PRF") under Assistance Listing Number 93.498 are based on the Hospital's June 30, 2023 report to the PRF Reporting Portal.
Title: Donated Personal 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. De Minimis Rate Used: N Rate Explanation: N/A - not used. During 2023, the Hospital did not receive material donated personal protective equipment from federal sources.

Finding Details

Finding 2023-001
MATERIAL WEAKNESS Federal Agency: U.S. Department of Health and Human Services Assistance Listing Number: 93.912 – Rural Health Care Services Outreach, Rural Health Network Development, and Small Health Care Provider Quality Improvement Program 2023-001: Untimely Disbursement of Federal Grant Funds Received Compliance Requirement(s): Cash Management Criteria: Cash Management requirements for the U.S. Department of Health and Human Services stipulates that federal cash must be drawn solely to accommodate immediate needs and must not be held more than three (3) working days. Condition – During our testing of the underlying information supporting this cash management requirement, we noted eleven (11) expenditures of the 60 expenditures tested where the federal grant funds received were not disbursed within 3 working days. Cause – The cause of this deficiency is due to the lack of internal controls to ensure proper disbursement of federal grant funds. Effect – The effect is federal grant funds being held in excess of three (3) working days. Recommendation – We recommend the Hospital implement internal control procedures to ensure proper and timely disbursements of federal grant funds. Management’s Response – We will implement internal control procedures to ensure proper and timely disbursements of federal grant funds, as is required under the cash management guidelines stipulated by HHS, in future periods. We do not believe the federal grant funds being held in excess of three (3) working days resulted in an overstatement of the Hospital’s federal grant funds utilized as part of the Rural Health Care Services Outreach, Rural Health Network Development, and Small Health Care Provider Quality Improvement Plan Program.
Finding 2023-001
MATERIAL WEAKNESS Federal Agency: U.S. Department of Health and Human Services Assistance Listing Number: 93.912 – Rural Health Care Services Outreach, Rural Health Network Development, and Small Health Care Provider Quality Improvement Program 2023-001: Untimely Disbursement of Federal Grant Funds Received Compliance Requirement(s): Cash Management Criteria: Cash Management requirements for the U.S. Department of Health and Human Services stipulates that federal cash must be drawn solely to accommodate immediate needs and must not be held more than three (3) working days. Condition – During our testing of the underlying information supporting this cash management requirement, we noted eleven (11) expenditures of the 60 expenditures tested where the federal grant funds received were not disbursed within 3 working days. Cause – The cause of this deficiency is due to the lack of internal controls to ensure proper disbursement of federal grant funds. Effect – The effect is federal grant funds being held in excess of three (3) working days. Recommendation – We recommend the Hospital implement internal control procedures to ensure proper and timely disbursements of federal grant funds. Management’s Response – We will implement internal control procedures to ensure proper and timely disbursements of federal grant funds, as is required under the cash management guidelines stipulated by HHS, in future periods. We do not believe the federal grant funds being held in excess of three (3) working days resulted in an overstatement of the Hospital’s federal grant funds utilized as part of the Rural Health Care Services Outreach, Rural Health Network Development, and Small Health Care Provider Quality Improvement Plan Program.