FAC Explorer

Audit 302275

FY End
2021-06-30
Total Expended
$9.25M
Findings
8
Programs
4
Organization: Chesapeake Hospital Authority (VA)
Year: 2021 Accepted: 2024-04-02
Auditor: Bdo USA PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
392112 2021-001 Significant Deficiency - B
392113 2021-002 Significant Deficiency - L
392114 2021-001 Significant Deficiency - B
392115 2021-002 Significant Deficiency - L
968554 2021-001 Significant Deficiency - B
968555 2021-002 Significant Deficiency - L
968556 2021-001 Significant Deficiency - B
968557 2021-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $7.42M Yes 2
21.019 Coronavirus Relief Fund $1.55M Yes 2
93.461 Covid-19 Testing for the Uninsured $157,319 - 0
16.575 Crime Victim Assistance $121,967 - 0

Contacts

Name Title Type
GMFLJZLNKK34 Stephen McDonnell Auditee
7573123138 Karen Fitzsimmons 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Program (PRF Program) amount on the Schedule includes $7,419,858 for reimbursement of lost revenue and was recognized in CARES Act stimulus funds in the Statement of Revenues, Expenses, and Changes in Net Position in a prior period. These amounts are reported in the Schedule in accordance with the terms and conditions included in the Department of Health and Human Services (HHS) Post-Payment Notice of Reporting Requirements specific to the PRF Program. De Minimis Rate Used: Y Rate Explanation: Chesapeake Hospital Authority elected to use the 10­percent 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 Chesapeake Hospital Authority (the Authority) under programs of the federal government for the year ended June 30, 2021. 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 Authority, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Authority.
Title: Note 4. Donated Personal Protective Equipment (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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Program (PRF Program) amount on the Schedule includes $7,419,858 for reimbursement of lost revenue and was recognized in CARES Act stimulus funds in the Statement of Revenues, Expenses, and Changes in Net Position in a prior period. These amounts are reported in the Schedule in accordance with the terms and conditions included in the Department of Health and Human Services (HHS) Post-Payment Notice of Reporting Requirements specific to the PRF Program. De Minimis Rate Used: Y Rate Explanation: Chesapeake Hospital Authority elected to use the 10­percent de minimis indirect cost rate allowed under the Uniform Guidance. During the year ended June 30, 2021, Chesapeake Hospital Authority did not receive donations of personal protective equipment from federal agencies and recipients of federal assistance funds.
Title: Note 5. Entities included in the Schedule 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. The Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Program (PRF Program) amount on the Schedule includes $7,419,858 for reimbursement of lost revenue and was recognized in CARES Act stimulus funds in the Statement of Revenues, Expenses, and Changes in Net Position in a prior period. These amounts are reported in the Schedule in accordance with the terms and conditions included in the Department of Health and Human Services (HHS) Post-Payment Notice of Reporting Requirements specific to the PRF Program. De Minimis Rate Used: Y Rate Explanation: Chesapeake Hospital Authority elected to use the 10­percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule includes the following entities as identified by individual tax identification number (TIN) and entity name: 23-7133975 Chesapeake General Hospital DBA CRMC 54-2010320 Surgery Center of Chesapeake, LLC 26-2366542 Chesapeake Regional Medical Group 20-5039854 Chesapeake Neuroinstitute, LLC 63-1242196 Chesapeake Diagnostic Imaging Center, LLC 54-1513749 First Meridian Medical, LLC 54-2003078 Positron Emission Tomography of Hampton Roads

Finding Details

Finding 2021-001
2021-001 – Internal Controls over Allowable Costs Identification of the Federal Program: 93.498 COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution 21.019 COVID-19 - Coronavirus Relief Fund Criteria: In accordance with 2 CFR Section 200.303, non-Federal entities must establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statues, regulations, and the terms and conditions of the Federal award. Condition: In accordance with established internal controls, Chesapeake Hospital Authority (the Authority) did not maintain documentation evidencing that costs were approved prior to charging the federal program. Cause: Due to the initial or early years of the Federal awards, internal controls over compliance and identification of costs allowable under the Federal award did not operate as designed in certain transactions. Effect: Approval of allowable charges relating to non-salary transactions reported to the federal awarding agency via the Health Resources & Services Administration (HRSA) Provider Relief Fund Portal may not have been adequately documented. Questioned costs: None Context: We selected 25 non-payroll costs charged to the 93.498 federal award and reported under the “Other PRF Expenses” section of the HRSA Provider Relief Fund Portal submission and 23 non-payroll costs charged to the 21.019 federal award. All costs selected in such testing were noted as allowable, however were unable to be supported by documentation of approval for charging to the federal program. Repeat finding: No Recommendation: We recommend the Authority enforce policies and procedures over document retention for approval of costs permitting charge to the federal program. View of Responsible Officials: The Authority’s management agrees with the federal award finding identified in the audit. Management’s response to this finding is described in the accompanying management’s corrective action plan.
Finding 2021-002
2021-002 – Reporting – Submission of the Data Collection Form Identification of the Federal Program: 93.498 COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution 21.019 COVID-19 - Coronavirus Relief Fund Criteria: In accordance with 2 CFR Section 200.512(a), the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period, adjusted for any extensions permitted by the Office of Management and Budget. Condition: The reporting package and data collection form for the year ended June 30, 2021, was not filed by the extended deadline of September 30, 2022, to the Federal Audit Clearinghouse. Cause: Although the schedule and notes thereto were prepared accurately and timely, additional time was required to comply fully with reporting on, and audit of, compliance requirements of new federal award programs. Effect: The reporting package and data collection form for the year ended June 30, 2021, was not submitted to the Federal Audit Clearinghouse in a timely manner. Questioned costs: None Context: The reporting package and data collection form for the year ended June 30, 2021, was submitted to the Federal Audit Clearinghouse after the due date of September 30, 2022. Repeat finding: No Recommendation: We recommend the Authority continue to refine policies and procedures, including tracking and monitoring of reporting requirements, to ensure that the audit, reporting package, and data collection form are electronically filed with the Federal Audit Clearinghouse within the applicable deadline. View of Responsible Officials: The Authority’s management agrees with the federal award finding identified in the audit. Management’s response to this finding is described in the accompanying management’s corrective action plan.
Finding 2021-001
2021-001 – Internal Controls over Allowable Costs Identification of the Federal Program: 93.498 COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution 21.019 COVID-19 - Coronavirus Relief Fund Criteria: In accordance with 2 CFR Section 200.303, non-Federal entities must establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statues, regulations, and the terms and conditions of the Federal award. Condition: In accordance with established internal controls, Chesapeake Hospital Authority (the Authority) did not maintain documentation evidencing that costs were approved prior to charging the federal program. Cause: Due to the initial or early years of the Federal awards, internal controls over compliance and identification of costs allowable under the Federal award did not operate as designed in certain transactions. Effect: Approval of allowable charges relating to non-salary transactions reported to the federal awarding agency via the Health Resources & Services Administration (HRSA) Provider Relief Fund Portal may not have been adequately documented. Questioned costs: None Context: We selected 25 non-payroll costs charged to the 93.498 federal award and reported under the “Other PRF Expenses” section of the HRSA Provider Relief Fund Portal submission and 23 non-payroll costs charged to the 21.019 federal award. All costs selected in such testing were noted as allowable, however were unable to be supported by documentation of approval for charging to the federal program. Repeat finding: No Recommendation: We recommend the Authority enforce policies and procedures over document retention for approval of costs permitting charge to the federal program. View of Responsible Officials: The Authority’s management agrees with the federal award finding identified in the audit. Management’s response to this finding is described in the accompanying management’s corrective action plan.
Finding 2021-002
2021-002 – Reporting – Submission of the Data Collection Form Identification of the Federal Program: 93.498 COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution 21.019 COVID-19 - Coronavirus Relief Fund Criteria: In accordance with 2 CFR Section 200.512(a), the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period, adjusted for any extensions permitted by the Office of Management and Budget. Condition: The reporting package and data collection form for the year ended June 30, 2021, was not filed by the extended deadline of September 30, 2022, to the Federal Audit Clearinghouse. Cause: Although the schedule and notes thereto were prepared accurately and timely, additional time was required to comply fully with reporting on, and audit of, compliance requirements of new federal award programs. Effect: The reporting package and data collection form for the year ended June 30, 2021, was not submitted to the Federal Audit Clearinghouse in a timely manner. Questioned costs: None Context: The reporting package and data collection form for the year ended June 30, 2021, was submitted to the Federal Audit Clearinghouse after the due date of September 30, 2022. Repeat finding: No Recommendation: We recommend the Authority continue to refine policies and procedures, including tracking and monitoring of reporting requirements, to ensure that the audit, reporting package, and data collection form are electronically filed with the Federal Audit Clearinghouse within the applicable deadline. View of Responsible Officials: The Authority’s management agrees with the federal award finding identified in the audit. Management’s response to this finding is described in the accompanying management’s corrective action plan.
Finding 2021-001
2021-001 – Internal Controls over Allowable Costs Identification of the Federal Program: 93.498 COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution 21.019 COVID-19 - Coronavirus Relief Fund Criteria: In accordance with 2 CFR Section 200.303, non-Federal entities must establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statues, regulations, and the terms and conditions of the Federal award. Condition: In accordance with established internal controls, Chesapeake Hospital Authority (the Authority) did not maintain documentation evidencing that costs were approved prior to charging the federal program. Cause: Due to the initial or early years of the Federal awards, internal controls over compliance and identification of costs allowable under the Federal award did not operate as designed in certain transactions. Effect: Approval of allowable charges relating to non-salary transactions reported to the federal awarding agency via the Health Resources & Services Administration (HRSA) Provider Relief Fund Portal may not have been adequately documented. Questioned costs: None Context: We selected 25 non-payroll costs charged to the 93.498 federal award and reported under the “Other PRF Expenses” section of the HRSA Provider Relief Fund Portal submission and 23 non-payroll costs charged to the 21.019 federal award. All costs selected in such testing were noted as allowable, however were unable to be supported by documentation of approval for charging to the federal program. Repeat finding: No Recommendation: We recommend the Authority enforce policies and procedures over document retention for approval of costs permitting charge to the federal program. View of Responsible Officials: The Authority’s management agrees with the federal award finding identified in the audit. Management’s response to this finding is described in the accompanying management’s corrective action plan.
Finding 2021-002
2021-002 – Reporting – Submission of the Data Collection Form Identification of the Federal Program: 93.498 COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution 21.019 COVID-19 - Coronavirus Relief Fund Criteria: In accordance with 2 CFR Section 200.512(a), the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period, adjusted for any extensions permitted by the Office of Management and Budget. Condition: The reporting package and data collection form for the year ended June 30, 2021, was not filed by the extended deadline of September 30, 2022, to the Federal Audit Clearinghouse. Cause: Although the schedule and notes thereto were prepared accurately and timely, additional time was required to comply fully with reporting on, and audit of, compliance requirements of new federal award programs. Effect: The reporting package and data collection form for the year ended June 30, 2021, was not submitted to the Federal Audit Clearinghouse in a timely manner. Questioned costs: None Context: The reporting package and data collection form for the year ended June 30, 2021, was submitted to the Federal Audit Clearinghouse after the due date of September 30, 2022. Repeat finding: No Recommendation: We recommend the Authority continue to refine policies and procedures, including tracking and monitoring of reporting requirements, to ensure that the audit, reporting package, and data collection form are electronically filed with the Federal Audit Clearinghouse within the applicable deadline. View of Responsible Officials: The Authority’s management agrees with the federal award finding identified in the audit. Management’s response to this finding is described in the accompanying management’s corrective action plan.
Finding 2021-001
2021-001 – Internal Controls over Allowable Costs Identification of the Federal Program: 93.498 COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution 21.019 COVID-19 - Coronavirus Relief Fund Criteria: In accordance with 2 CFR Section 200.303, non-Federal entities must establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statues, regulations, and the terms and conditions of the Federal award. Condition: In accordance with established internal controls, Chesapeake Hospital Authority (the Authority) did not maintain documentation evidencing that costs were approved prior to charging the federal program. Cause: Due to the initial or early years of the Federal awards, internal controls over compliance and identification of costs allowable under the Federal award did not operate as designed in certain transactions. Effect: Approval of allowable charges relating to non-salary transactions reported to the federal awarding agency via the Health Resources & Services Administration (HRSA) Provider Relief Fund Portal may not have been adequately documented. Questioned costs: None Context: We selected 25 non-payroll costs charged to the 93.498 federal award and reported under the “Other PRF Expenses” section of the HRSA Provider Relief Fund Portal submission and 23 non-payroll costs charged to the 21.019 federal award. All costs selected in such testing were noted as allowable, however were unable to be supported by documentation of approval for charging to the federal program. Repeat finding: No Recommendation: We recommend the Authority enforce policies and procedures over document retention for approval of costs permitting charge to the federal program. View of Responsible Officials: The Authority’s management agrees with the federal award finding identified in the audit. Management’s response to this finding is described in the accompanying management’s corrective action plan.
Finding 2021-002
2021-002 – Reporting – Submission of the Data Collection Form Identification of the Federal Program: 93.498 COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution 21.019 COVID-19 - Coronavirus Relief Fund Criteria: In accordance with 2 CFR Section 200.512(a), the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period, adjusted for any extensions permitted by the Office of Management and Budget. Condition: The reporting package and data collection form for the year ended June 30, 2021, was not filed by the extended deadline of September 30, 2022, to the Federal Audit Clearinghouse. Cause: Although the schedule and notes thereto were prepared accurately and timely, additional time was required to comply fully with reporting on, and audit of, compliance requirements of new federal award programs. Effect: The reporting package and data collection form for the year ended June 30, 2021, was not submitted to the Federal Audit Clearinghouse in a timely manner. Questioned costs: None Context: The reporting package and data collection form for the year ended June 30, 2021, was submitted to the Federal Audit Clearinghouse after the due date of September 30, 2022. Repeat finding: No Recommendation: We recommend the Authority continue to refine policies and procedures, including tracking and monitoring of reporting requirements, to ensure that the audit, reporting package, and data collection form are electronically filed with the Federal Audit Clearinghouse within the applicable deadline. View of Responsible Officials: The Authority’s management agrees with the federal award finding identified in the audit. Management’s response to this finding is described in the accompanying management’s corrective action plan.