Audit 306261

FY End
2021-09-30
Total Expended
$4.65M
Findings
2
Programs
2
Organization: Choctaw Regional Medical Center (MS)
Year: 2021 Accepted: 2024-05-14

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
396656 2021-001 - - P
973098 2021-001 - - P

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $4.35M Yes 1
93.697 Covid-19 Testing for Rural Health Clinics $300,000 - 0

Contacts

Name Title Type
DRB9Z3D2HU19 Steve Marinelli Auditee
6622854400 Randy Gammill Auditor
No contacts on file

Notes to SEFA

Title: NOTE A – 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: The Facility 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 grant activity of the Facility under a program of the federal government for the year ended September 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 Facility, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Facility.
Title: NOTE B – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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: The Facility has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. 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.
Title: NOTE C – INDIRECT COST RATE 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: The Facility has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Facility has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: NOTE D – INSURANCE COVERAGE 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: The Facility has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Facility maintains insurance coverage as recommended by its insurance agent of record.
Title: NOTE E – SUB-RECIPIENTS 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: The Facility has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Facility did not pass any awards through to sub-recipients for the year ended September 30, 2021.
Title: NOTE F – AWARDS THROUGH THE PROVIDER RELIEF FUND 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: The Facility has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Facility received approximately $4,354,000 in funds under the Provider Relief Program (PRF) during 2020 and 2021, $2M of the funds were fully recognized based on COVID expenses during the year ended September 30, 2020. The remaining funds were recognized during the year ended September 30, 2021. The Health Resources and Services Administration (“HRSA”) has established a special reporting system to track this federal program. HRSA requires that expenditures and lost revenues be reported on the Schedule of Expenditures in the same reporting period they are reported through the PRF portal. As a result, the Facility has reported $2M in funds on the Schedule of Expenditures of Federal Awards for the year ended September 30, 2021 which were recognized in the financial statements for the year ending September 30, 2020.

Finding Details

Condition: The Single Audit was not filed within 9 months of year end for the fiscal year ended September 30, 2021. Criteria: In Accordance with Uniform Guidance, the single audit should be filed by the earlier of, 30 days after the audit report date, or 9 months after year end. Cause: Due to delays in completing the audit of the financial statements and the single audit, the deadline was surpassed. Effect: Under Uniform Guidance, if Choctaw Regional Medical Center requires a single audit for either of the next two years, they will automatically be considered a “not low risk” auditee. This designation will require testing coverage under the Single Audit to equal or exceed 40% of federal expenditures as opposed to 20% under a “low risk” designation. Recommendation: Management should ensure that the accounting records are closed timely to allow for adequate time to complete the audit and any single audit requirements, and file by the deadline. Views of responsible officials: See corrective action plan.
Condition: The Single Audit was not filed within 9 months of year end for the fiscal year ended September 30, 2021. Criteria: In Accordance with Uniform Guidance, the single audit should be filed by the earlier of, 30 days after the audit report date, or 9 months after year end. Cause: Due to delays in completing the audit of the financial statements and the single audit, the deadline was surpassed. Effect: Under Uniform Guidance, if Choctaw Regional Medical Center requires a single audit for either of the next two years, they will automatically be considered a “not low risk” auditee. This designation will require testing coverage under the Single Audit to equal or exceed 40% of federal expenditures as opposed to 20% under a “low risk” designation. Recommendation: Management should ensure that the accounting records are closed timely to allow for adequate time to complete the audit and any single audit requirements, and file by the deadline. Views of responsible officials: See corrective action plan.