FAC Explorer

Audit 304570

FY End
2023-06-30
Total Expended
$8.97M
Findings
2
Programs
4
Organization: Harney District Hospital (OH)
Year: 2023 Accepted: 2024-04-25
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
394686 2023-001 Material Weakness - ABL
971128 2023-001 Material Weakness - ABL

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $7.47M Yes 0
93.498 Provider Relief Fund $1.31M Yes 1
21.019 Coronavirus Relief Fund $98,258 - 0
93.155 Rural Health Research Centers $90,000 - 0

Contacts

Name Title Type
WHW3PLK9KVJ8 Catherine White Auditee
5415735187 Kevin Smith 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. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The District does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Harney County Health District (the District) under programs of the federal government for the year ended June 30, 2023. The information 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 District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the District.
Title: Note 2 - Significant Accounting Policies Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The District does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient.
Title: Note 3 - Indirect Cost Rate Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The District does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. The District does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate.
Title: Note 4 - Loans Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The District does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. Expenditures in this schedule consist of the beginning of the year outstanding loan balance plus advances made on the loan during the year. The balance of loans outstanding as of June 30, 2023 was $7,314,532.
Title: Note 5 - Provider Relief Funds Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The District does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. The District received amounts from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund and American Rescue Plan Rural Distribution (PRF) program (Federal Financial Assistance Listing #93.498) in the amount of $1,295,265 as of December 31, 2021, along with interest of $18,782 totaling $1,314,047. The PRF expenditures are not recognized on the schedule until the expenditures are included in the reporting to HHS as required under the PRF program.

Finding Details

Finding 2023-001
2023-001 Department of Health and Human Services Federal Financial Assistance Listing #93.498 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year – Period 4 TIN # Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Reporting Material Weakness in Internal Control Over Compliance and Material Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The District did not reduce expenses by amounts reimbursed by other sources related to cost-based reimbursement, as some costs incurred in providing services to the Medicare population are reimbursed. Cause: The District did not have an adequate internal control policy in place to ensure review of amounts reimbursed by other sources. Effect: The District submitted expenses over their actual allowable expenses. Questioned Costs: $369,475 Context: A nonstatistical sample of 9 expenditures were selected for testing, which accounted for $1,155,652 of $1,314,047 direct program expenditures. None of the expenditures were reduced by reimbursements from other sources, which resulted in unallowable costs of $369,475 when considered for the entire population. Repeat Finding from Prior Years: No Recommendation: We recommend that the District enhance internal control policies to ensure that expenses are reviewed for reimbursement from other sources and meet the requirements of the federal program. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-001
2023-001 Department of Health and Human Services Federal Financial Assistance Listing #93.498 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year – Period 4 TIN # Activities Allowed or Unallowed, Allowable Costs/Cost Principles and Reporting Material Weakness in Internal Control Over Compliance and Material Noncompliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The District did not reduce expenses by amounts reimbursed by other sources related to cost-based reimbursement, as some costs incurred in providing services to the Medicare population are reimbursed. Cause: The District did not have an adequate internal control policy in place to ensure review of amounts reimbursed by other sources. Effect: The District submitted expenses over their actual allowable expenses. Questioned Costs: $369,475 Context: A nonstatistical sample of 9 expenditures were selected for testing, which accounted for $1,155,652 of $1,314,047 direct program expenditures. None of the expenditures were reduced by reimbursements from other sources, which resulted in unallowable costs of $369,475 when considered for the entire population. Repeat Finding from Prior Years: No Recommendation: We recommend that the District enhance internal control policies to ensure that expenses are reviewed for reimbursement from other sources and meet the requirements of the federal program. Views of Responsible Officials: Management agrees with the finding.