FAC Explorer

Audit 310696

FY End
2022-06-30
Total Expended
$2.34M
Findings
2
Programs
2
Organization: Nacogdoches Memorial Hospital District (TX)
Year: 2022 Accepted: 2024-06-28
Auditor: Forvis Mazars LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
403696 2022-003 - - ABEN
980138 2022-003 - - ABEN

Programs

ALN Program Spent Major Findings
93.461 Covid-19 Testing for the Uninsured $1.29M Yes 1
93.498 Provider Relief Fund $1.05M Yes 0

Contacts

Name Title Type
JZK1AL23HP31 Lynn Lindsey Auditee
9362215801 David Harwood Auditor
No contacts on file

Notes to SEFA

Title: Basis to 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 or other regulatory reimbursement, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Nacogdoches County Hospital District (the District) under programs of the federal government for the year ended June 30, 2022. 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 District, it is not intended to and does not present the financial position, changes in net position or cash flows of the District. Effective July 14, 2021, the District transferred the hospital operations to Lion Star Nacogdoches Hospital, LLC.
Title: Federal Loan Programs 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 or other regulatory reimbursement, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts, if any, shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The District has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The District did not have any federal loan programs during the year ended June 30, 2022.

Finding Details

Finding 2022-003
Criteria: (45 CFR section 75.302) Activities Allowed or Unallowed and Allowable Costs/Cost Principles, Eligibility, and Special Tests and Provisions. Condition: The District received COVID-19 HRSA funds from the U.S. Department of Health and Human Services but the District cannot meet the compliance requirements for this program as they transferred the operations of the hospital to Lion Star Nacogdoches Hospital, LLC (Lion Star). Questioned costs: Unknown Context: On July 14, 2021, the District transferred hospital operations to Lion Star. After the transfer of operations and throughout the fiscal year, the District received COVID-19 funds under this program. During the fiscal year, the District transferred the entirety of these funds received to Lion Star. Effect: The District does not have support of the patients in this program since the hospital operations were transferred to Lion Star and should have returned the funds to the U.S. Department of Health and Human Services. Cause: During the fiscal year, the District transferred the operations of the hospital to Lion Star but the District received COVID-19 funding under the incorrect employer identification number. Identification as a repeat finding: Not a repeat finding. Recommendation: The District should ensure they only request reimbursement for federal grants for programs with the correct employer identification number. Views of responsible officials and planned corrective actions: Management agrees with the findings and recommendations.
Finding 2022-003
Criteria: (45 CFR section 75.302) Activities Allowed or Unallowed and Allowable Costs/Cost Principles, Eligibility, and Special Tests and Provisions. Condition: The District received COVID-19 HRSA funds from the U.S. Department of Health and Human Services but the District cannot meet the compliance requirements for this program as they transferred the operations of the hospital to Lion Star Nacogdoches Hospital, LLC (Lion Star). Questioned costs: Unknown Context: On July 14, 2021, the District transferred hospital operations to Lion Star. After the transfer of operations and throughout the fiscal year, the District received COVID-19 funds under this program. During the fiscal year, the District transferred the entirety of these funds received to Lion Star. Effect: The District does not have support of the patients in this program since the hospital operations were transferred to Lion Star and should have returned the funds to the U.S. Department of Health and Human Services. Cause: During the fiscal year, the District transferred the operations of the hospital to Lion Star but the District received COVID-19 funding under the incorrect employer identification number. Identification as a repeat finding: Not a repeat finding. Recommendation: The District should ensure they only request reimbursement for federal grants for programs with the correct employer identification number. Views of responsible officials and planned corrective actions: Management agrees with the findings and recommendations.