Audit 306320

FY End
2023-12-31
Total Expended
$16.46M
Findings
2
Programs
14
Year: 2023 Accepted: 2024-05-15
Auditor: Rsm US LLP

Organization Exclusion Status:

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Contacts

Name Title Type
FNRGBN9LEKA8 Naimish Patel Auditee
8165995552 Ryan Weber Auditor
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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, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Swope Health Services and its subsidiaries elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Swope Health Services and its subsidiaries for the year ended December 31, 2023. All federal financial assistance received by Swope Health Services and its subsidiaries directly from federal agencies as well as federal financial assistance passed through other governmental agencies are included in the schedule. The information in this schedule is presented in accordance with the requirements of the Single Audit Act and 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 consolidated financial statements. Because the schedule presents only a selected portion of the operations of Swope Health Services and its subsidiaries, it is not intended to and does not present the financial position, changes in net assets or cash flows of Swope Health Services and its subsidiaries.
Title: Significant Accounting Policies Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Swope Health Services and its subsidiaries elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Swope Health Services and its subsidiaries elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Swope Health Services and its subsidiaries elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Provider Relief Fund Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-122, Cost Principles for Non-Profit Organizations, or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Swope Health Services and its subsidiaries elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Under the terms and conditions of the Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution program (ALN 93.498), Swope Health Services is required to report COVID-19 related expenses to the U.S. Department of Health and Human Services (HHS). Guidance from HHS has required the reporting of the COVID-19 related expenses in certain reporting periods based on when the funds were received. The December 31, 2023 Schedule includes PRF expenditures of $847,471. Distributions of $847,471 were received by Swope Health Services from January 1, 2022 to June 30, 2022. Swope Health Services recognized $509,272 of the distribution received as revenue in its December 31, 2022 financial statements and the remaining $338,199 as revenue in its December 31, 2023 financial statements. Revenue was recognized as the terms and conditions of the PRF were satisfied. HHS requires PRF amounts received between January 1, 2022 to June 30, 2022 to be reported on the December 31, 2023 Schedule.

Finding Details

2023-001 U.S. Department of Health and Human Services COVID-19 - Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution ALN 93.498 Federal Award Year: 2023 Type of Finding: Significant Deficiency Finding: Swope Health Services and Subsidiaries expended federal funding on an invoice with a service period outside of the Period of Availability for Period 5 of the Provider Relief Fund. Criteria: Provider Relief Fund disbursements are separated into various reporting periods based on the timing of the original payment received by the Organization. The Organization received funding under Period 5 that has a period of availability of January 1, 2020 to June 30, 2023. All expenditures reimbursed by the Period 5 funds must be incurred within this period. Condition: The Organization used PRF funding to cover the cost of a patient registration program for one year. The contract was paid for and signed during the period of availability but a portion of the cost of the program was not incurred until after June 30, 2023. Cause: The Organization did not have review controls in place to ensure that only expenditures with the applicable period of availability were allocated to the grant. Effect: Noncompliance with federal regulations over the period of allowability could impact future funding. Context: One invoice out of forty tested for this program was outside the period of availability. Questioned Costs: $80,813 Repeat Finding: No Recommendation: We recommend that the Organization implement procedures to properly review the period of availability when applying expenditures to federal grants. Management Response: Management agrees with the finding. See corrective action plan.
2023-001 U.S. Department of Health and Human Services COVID-19 - Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution ALN 93.498 Federal Award Year: 2023 Type of Finding: Significant Deficiency Finding: Swope Health Services and Subsidiaries expended federal funding on an invoice with a service period outside of the Period of Availability for Period 5 of the Provider Relief Fund. Criteria: Provider Relief Fund disbursements are separated into various reporting periods based on the timing of the original payment received by the Organization. The Organization received funding under Period 5 that has a period of availability of January 1, 2020 to June 30, 2023. All expenditures reimbursed by the Period 5 funds must be incurred within this period. Condition: The Organization used PRF funding to cover the cost of a patient registration program for one year. The contract was paid for and signed during the period of availability but a portion of the cost of the program was not incurred until after June 30, 2023. Cause: The Organization did not have review controls in place to ensure that only expenditures with the applicable period of availability were allocated to the grant. Effect: Noncompliance with federal regulations over the period of allowability could impact future funding. Context: One invoice out of forty tested for this program was outside the period of availability. Questioned Costs: $80,813 Repeat Finding: No Recommendation: We recommend that the Organization implement procedures to properly review the period of availability when applying expenditures to federal grants. Management Response: Management agrees with the finding. See corrective action plan.