FAC Explorer

Audit 309874

FY End
2023-09-30
Total Expended
$2.19M
Findings
2
Programs
2
Organization: Wagoner Hospital Authority, An Oklahoma Trust, D/b/a Wagoner Community Hospital (OK)
Year: 2023 Accepted: 2024-06-25
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
401956 2023-002 Material Weakness - ABL
978398 2023-002 Material Weakness - ABL

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $1.91M Yes 1
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $251,949 - 0

Contacts

Name Title Type
N4B7TNJUJRG1 Rebecca Sharp Auditee
9184851236 Tyler Bernier 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 Authority does not draw for 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 Wagoner Hospital Authority d/b/a Wagoner Community Hospital (Authority) under programs of the federal government for the year ended September 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 Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.
Title: Note 4 – COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution 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 Authority does not draw for administrative expenses and has not elected to use the 10% de minimis cost rate. The Authority received amounts from the U.S. Department of Health and Human Services (HHS) through the COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) program (Federal Financial Assistance Listing #93.498) during the year ended September 30, 2022 totaling $1,904,994. The Authority incurred eligible expenditures including lost revenues and, therefore, recognized revenues totaling $-0- and $1,904,994 for the years ended September 30, 2023 and 2022 on the financial statements. In accordance with the 2023 compliance supplement, the PRF program expenditures recognized on the schedule are based on the reporting to HHS for Period 4, defined as payments received during July 1, 2021 to December 31, 2021 of $1,904,994, including interest of $608, as required under the PRF program.

Finding Details

Finding 2023-002
Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year – Period 1 TIN #352276246 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 Authority claimed expenses that were previously claimed and reported on the Period 1 report to the Department of Health and Human Services (HHS). Cause: The Authority misunderstood the reporting requirements on the Period 4 report to HHS and believed the section related to expenses incurred required all expenses for the program from inception, including those claimed on previous reports, be included. Effect: The Authority claimed and reported expenses that were previously claimed and reported in Period 1 report to HHS. Accordingly, the Authority technically claimed expenses already reimbursed by the program and the Period 4 report to HHS contained material errors. Questioned Costs: None reported. While $502,982 of expenses were claimed on the Period 1 report to HHS, the Authority reported excess lost revenues totaling $4,674,489. The Authority intended to utilize available lost revenues when reporting. Context: All key line items were tested on the Period 4 report to HHS. The total error was identified when reconciling the expense details to the Period 4 report to HHS. No sampling was utilized related to this finding. Repeat Finding from Prior Years: No Recommendation: We recommend the Authority modify internal control policies to ensure there is an understanding of reporting requirements to ensure that reports are accurate and amounts are not inadvertently claimed that are considered unallowable. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-002
Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year – Period 1 TIN #352276246 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 Authority claimed expenses that were previously claimed and reported on the Period 1 report to the Department of Health and Human Services (HHS). Cause: The Authority misunderstood the reporting requirements on the Period 4 report to HHS and believed the section related to expenses incurred required all expenses for the program from inception, including those claimed on previous reports, be included. Effect: The Authority claimed and reported expenses that were previously claimed and reported in Period 1 report to HHS. Accordingly, the Authority technically claimed expenses already reimbursed by the program and the Period 4 report to HHS contained material errors. Questioned Costs: None reported. While $502,982 of expenses were claimed on the Period 1 report to HHS, the Authority reported excess lost revenues totaling $4,674,489. The Authority intended to utilize available lost revenues when reporting. Context: All key line items were tested on the Period 4 report to HHS. The total error was identified when reconciling the expense details to the Period 4 report to HHS. No sampling was utilized related to this finding. Repeat Finding from Prior Years: No Recommendation: We recommend the Authority modify internal control policies to ensure there is an understanding of reporting requirements to ensure that reports are accurate and amounts are not inadvertently claimed that are considered unallowable. Views of Responsible Officials: Management agrees with the finding.