FAC Explorer

Audit 306356

FY End
2023-12-31
Total Expended
$10.70M
Findings
2
Programs
1
Organization: Healthworks Kha Foundation, Inc. (KS)
Year: 2023 Accepted: 2024-05-15
Auditor: Wendling Noe Nelson & Johnson LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
396718 2023-002 Significant Deficiency - C
973160 2023-002 Significant Deficiency - C

Programs

ALN Program Spent Major Findings
93.301 Small Rural Hospital Improvement Grant Program $10.70M Yes 1

Contacts

Name Title Type
HEDQBRE6B157 Jennifer Findley Auditee
7852337436 Cameron Werth 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. Pass‐through entity identifying numbers are presented where available. De Minimis Rate Used: Y Rate Explanation: The Foundation has elected to use the 10 percent indirect cost rate per its contract with the Kansas Department of Health and Environment (KDHE). The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant award activity of Healthworks KHA Foundation, Inc. (Foundation), under programs of the federal government for the year ended December 31, 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 Foundation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Foundation.
Title: 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. Pass‐through entity identifying numbers are presented where available. De Minimis Rate Used: Y Rate Explanation: The Foundation has elected to use the 10 percent indirect cost rate per its contract with the Kansas Department of Health and Environment (KDHE). 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. Pass‐through entity identifying numbers are presented where available.
Title: 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. Pass‐through entity identifying numbers are presented where available. De Minimis Rate Used: Y Rate Explanation: The Foundation has elected to use the 10 percent indirect cost rate per its contract with the Kansas Department of Health and Environment (KDHE). The Foundation has elected to use the 10 percent indirect cost rate per its contract with the Kansas Department of Health and Environment (KDHE).

Finding Details

Finding 2023-002
Identification: 93.301 United States Department of Health and Human Services, COVID‐19 Small Hospital Improvement Program; Noncompliance Finding/Significant Deficiency; Cash Management Compliance Requirement. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) Section 305(b)(9) requires interest earned in excess of $500 on federal payments is to be remitted annually to the Department of Health and Human Services Payment Management System. Condition: During the audit, it was noted that going back to July 2020 when the first COVID‐19 Small Hospital Improvement grant funds were deposited and through December 31, 2023, the Foundation earned interest totaling $371,328 on advances of federal grant awards and had not remitted the interest earnings in accordance with Uniform Guidance Section 305(b)(9). Cause: The Foundation did not have adequate controls in place to ensure that interest earnings in excess of $500 be remitted annually in accordance with Uniform Guidance Section 305(b)(9). Effect: The Foundation did not comply with cash management principles for federal payments as set forth in Uniform Guidance Section 305(b)(9). Questioned costs: None Perspective information: We tested the Foundation's computation for interest earned on advances of federal awards and determined the interest earnings of $371,328 had not been properly remitted to the Department of Health and Human Services. Repeat Finding: N/A Recommendations: We recommend policies and procedures regarding cash management be improved so that processes are established to track and remit interest earnings on advances of federal grant awards. Views of Responsible Officials: The Foundation will implement procedures so that we are following the cash management principles outlined in Uniform Guidance Section 305(b)(9). The Foundation has been in contact with the Kansas Department of Health and Environment (KDHE), who provided these grant funds to the Foundation as a pass‐through agent, and we will return the excess interest earned on the advances of federal awards to KDHE.
Finding 2023-002
Identification: 93.301 United States Department of Health and Human Services, COVID‐19 Small Hospital Improvement Program; Noncompliance Finding/Significant Deficiency; Cash Management Compliance Requirement. Criteria: Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) Section 305(b)(9) requires interest earned in excess of $500 on federal payments is to be remitted annually to the Department of Health and Human Services Payment Management System. Condition: During the audit, it was noted that going back to July 2020 when the first COVID‐19 Small Hospital Improvement grant funds were deposited and through December 31, 2023, the Foundation earned interest totaling $371,328 on advances of federal grant awards and had not remitted the interest earnings in accordance with Uniform Guidance Section 305(b)(9). Cause: The Foundation did not have adequate controls in place to ensure that interest earnings in excess of $500 be remitted annually in accordance with Uniform Guidance Section 305(b)(9). Effect: The Foundation did not comply with cash management principles for federal payments as set forth in Uniform Guidance Section 305(b)(9). Questioned costs: None Perspective information: We tested the Foundation's computation for interest earned on advances of federal awards and determined the interest earnings of $371,328 had not been properly remitted to the Department of Health and Human Services. Repeat Finding: N/A Recommendations: We recommend policies and procedures regarding cash management be improved so that processes are established to track and remit interest earnings on advances of federal grant awards. Views of Responsible Officials: The Foundation will implement procedures so that we are following the cash management principles outlined in Uniform Guidance Section 305(b)(9). The Foundation has been in contact with the Kansas Department of Health and Environment (KDHE), who provided these grant funds to the Foundation as a pass‐through agent, and we will return the excess interest earned on the advances of federal awards to KDHE.