FAC Explorer

Audit 311400

FY End
2023-09-30
Total Expended
$4.96M
Findings
2
Programs
1
Organization: St Francis Health Services of Morris INC (MN)
Year: 2023 Accepted: 2024-07-01
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
405725 2023-002 Material Weakness - P
982167 2023-002 Material Weakness - P

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $4.96M Yes 1

Contacts

Name Title Type
CDE6MJRCKQL7 Mari Chambers Auditee
3205894910 Dave Studebaker 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: St. Francis does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. The accompanying consolidated schedule of expenditures of federal awards (the Schedule) includes the federal award activity of St. Francis Health Services of Morris, Inc. and Subsidiaries (St. Francis) 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 St. Francis, it is not intended to, and does not, present the consolidated financial position, changes in net assets, or cash flows of St. Francis.
Title: Note 4 - Provider Relief Fund and American Rescue Plan (ARP) Funds 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: St. Francis does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. St. Francis received amounts from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) program (Federal Financial Assistance Listing #93.498) in the amount of $9,091,696 as of September 30, 2023. The PRF expenditures are not recognized on the Schedule until the expenditures are included in the reporting to HHS as required under the PRF program. See the Notes to the SEFA for chart/table

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 Applicable Federal Award Number and Year – Period 4 TIN #203367397, Period 4 TIN #411668347, Period 4 TIN #411879639, Period 4 TIN #411799268, Period 4 TIN #200100365, Period 4 TIN #411810369, Period 4 TIN #463626109, Period 4 TIN #205617275, Period 4 TIN #202581924, Period 4 TIN #411843283, Period 4 TIN #237625632, Period 4 TIN #510487275, Period 4 #411598442, and Period 5 TIN #810910949. Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control Over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition: St. Francis does not have an internal control system to provide for a complete and accurate Schedule being audited. As auditors, we assisted with the preparation of the Schedule. Cause: Auditor assistance with preparation of the Schedule is not unusual as the Schedule has unique and specialized requirements and preparation is only required when St. Francis meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that St. Francis would not be able to draft the Schedule that is correct without the assistance of the auditors. Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to St. Francis’ Schedule and the internal controls that impact financial reporting. 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 Applicable Federal Award Number and Year – Period 4 TIN #203367397, Period 4 TIN #411668347, Period 4 TIN #411879639, Period 4 TIN #411799268, Period 4 TIN #200100365, Period 4 TIN #411810369, Period 4 TIN #463626109, Period 4 TIN #205617275, Period 4 TIN #202581924, Period 4 TIN #411843283, Period 4 TIN #237625632, Period 4 TIN #510487275, Period 4 #411598442, and Period 5 TIN #810910949. Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control Over Compliance Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition: St. Francis does not have an internal control system to provide for a complete and accurate Schedule being audited. As auditors, we assisted with the preparation of the Schedule. Cause: Auditor assistance with preparation of the Schedule is not unusual as the Schedule has unique and specialized requirements and preparation is only required when St. Francis meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that St. Francis would not be able to draft the Schedule that is correct without the assistance of the auditors. Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to St. Francis’ Schedule and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.