FAC Explorer

Audit 30816

FY End
2022-12-31
Total Expended
$1.94M
Findings
2
Programs
2
Organization: Ashe Memorial Hospital, Inc. (NC)
Year: 2022 Accepted: 2023-09-28
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
28102 2022-001 Significant Deficiency - L
604544 2022-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $1.68M Yes 1
93.155 Rural Health Research Centers $257,250 - 0

Contacts

Name Title Type
E5CNWAUKNGN9 Charles Wright Auditee
3368467101 Evan Marleaux 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 UniformGuidance for all awards. Under these principles, certain types of expenditures are notallowable or are limited as to reimbursement. Any negative amounts shown on the Schedulerepresent adjustments or credits made in the normal course of business to amountsreported as expenditures in prior years.During the year ended December 31, 2022, Ashe Memorial Hospital did not makesubrecipient payments with the federal funds listed in the schedule of expenditures offederal awards. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes thefederal award activity of Ashe Memorial Hospital and Affiliates under programs of the federalgovernment for the year ended December 31, 2022. The information in this Schedule ispresented in accordance with the requirements of 2 CFR Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). Because the Schedule presents only a selected portion of the operations ofAshe Memorial Hospital, it is not intended to and does not present the net assets, changesin net assets, or cash flows of Ashe Memorial Hospital.The consolidated financial statements reflect revenue recognized from the Provider ReliefFund of approximately $3,099,000 and $2,153,000 for the years ended December 31, 2022and 2021. The Schedule includes Provider Relief Funds of approximately $1,683,000 thatwere received in Period 4 in accordance with the requirements of the compliancesupplement for assistance listing number 93.498. The consolidated financial statementsreflect revenue recognized that consists of 50% of the Provider Relief Funds that werereceived in Period 1 and 50% of the Provider Relief Funds that were received in Period 4.

Finding Details

Finding 2022-001
2022-001 Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Provider Relief Funds (PRF) and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number: 93.498 Award Period: January 1, 2022 through December 31, 2022 Type of Finding: Compliance and Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Provider Relief Funds are required to be reported through the Provider Relief Fund Reporting Portal and include key line items for Nursing Home Infection Control Expenses, Other Provider Relief Fund Expenses, and Calculation of Lost Revenues Attributable to Coronavirus. Condition: Revenues related to a new payor were excluded from the lost revenue calculation on the AMH Reporting submission. However, the Hospital had sufficient other lost revenues to cover any Provider Relief Funds received. Questioned costs: None Context: During our testing, it was noted that the Organization reported incorrect lost revenues for the Hospital on the reporting submission as they incorrectly excluded some eligible patient revenue. However, the Hospital had sufficient other lost revenues and expenses to cover any Provider Relief Funds received. Cause: Controls were not in place to identify that the reporting submission excluded Hospital revenue. Effect: Information included in the submission could be incorrect and lost revenues could be overstated. Recommendation: We recommend the organization review the lost revenue calculation in future periods to ensure that hospital revenue is evaluated and reported correctly. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-001
2022-001 Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Provider Relief Funds (PRF) and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number: 93.498 Award Period: January 1, 2022 through December 31, 2022 Type of Finding: Compliance and Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The Provider Relief Funds are required to be reported through the Provider Relief Fund Reporting Portal and include key line items for Nursing Home Infection Control Expenses, Other Provider Relief Fund Expenses, and Calculation of Lost Revenues Attributable to Coronavirus. Condition: Revenues related to a new payor were excluded from the lost revenue calculation on the AMH Reporting submission. However, the Hospital had sufficient other lost revenues to cover any Provider Relief Funds received. Questioned costs: None Context: During our testing, it was noted that the Organization reported incorrect lost revenues for the Hospital on the reporting submission as they incorrectly excluded some eligible patient revenue. However, the Hospital had sufficient other lost revenues and expenses to cover any Provider Relief Funds received. Cause: Controls were not in place to identify that the reporting submission excluded Hospital revenue. Effect: Information included in the submission could be incorrect and lost revenues could be overstated. Recommendation: We recommend the organization review the lost revenue calculation in future periods to ensure that hospital revenue is evaluated and reported correctly. Views of responsible officials: There is no disagreement with the audit finding.