FAC Explorer

Audit 312032

FY End
2022-12-31
Total Expended
$849,096
Findings
6
Programs
4
Organization: City of Redfield (SD)
Year: 2022 Accepted: 2023-09-25
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
411171 2022-003 Material Weakness Yes P
411172 2022-004 Significant Deficiency Yes AB
411173 2022-004 Significant Deficiency Yes L
987613 2022-003 Material Weakness Yes P
987614 2022-004 Significant Deficiency Yes AB
987615 2022-004 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $626,078 Yes 3
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $110,768 - 0
93.697 Covid-19 Testing for Rural Health Clinics $100,000 - 0
93.461 Covid-19 Testing for the Uninsured $12,250 - 0

Contacts

Name Title Type
HN31LH3BAL58 Deb Dugan Auditee
6054757414 Joy Feige 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, with the exception of the COVID-19 HRSA Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund (the Uninsured Program), which are based on when the claim is determined eligible evidenced by the receipt of monies from the federal agency. 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 Hospital does not draw for indirect 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 Community Memorial Hospital (the Hospital) under programs of the federal government for the year ended December 31, 2022. 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 Hospital, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Hospital.
Title: Provider Relief Fund and American Rescue Plan Funds Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting, with the exception of the COVID-19 HRSA Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund (the Uninsured Program), which are based on when the claim is determined eligible evidenced by the receipt of monies from the federal agency. 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 Hospital does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. The Hospital 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 program (Federal Financial Assistance Listing #93.498) during the year ended December 31, 2021. The Hospital incurred eligible expenditures, including lost revenue, and therefore, recognized revenues totaling $3,785,563 for the year ended December 31, 2021 and $0 for the year ended December 31, 2022, on the financial statements. In accordance with the 2022 compliance supplement, the PRF expenditures recognized on the schedule are based on the reporting to HHS for Period 3, defined as payments received during January 1, 2021 to June 20, 2021 of $0, and Period 4, defined as payments received during July 1, 2021 to December 31, 2021 of $625,785, plus interest of $293, as required under the PRF program.

Finding Details

Finding 2022-003
2022-003 Department of Health and Human ServicesFederal Financial Assistance Listing #93.498COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #466000400Preparation of the Schedule of Expenditures of Federal AwardsMaterial Weakness in Internal Control Over Compliance - OtherCriteria: Proper controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (schedule) and accompanying notes to the schedule.Condition: The Hospital does not have an internal control system designed to provide for the preparation of the schedule. As auditors, we were requested to assist 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 the Hospital meets a specified threshold of federal expenditures.Effect: There is reasonable possibility that the Hospital would not be able to draft the schedule that is correct without the assistance of the auditors.Questioned Costs: None reported.Context: Sampling was not used.Repeat Finding from Prior Years: YesRecommendation: 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 the Hospital?s schedule and the internal controls that impact financial reporting.Views of Responsible Officials: Management agrees with the finding.
Finding 2022-004
2022-004 Department of Health and Human ServicesFederal Financial Assistance Listing #93.498COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN#466000400Activities Allowed or Unallowed and Allowable Costs/Cost PrinciplesSignificant Deficiency in Internal Control over Compliance and NoncomplianceReportingSignificant Deficiency in Internal Control over Compliance and NoncomplianceCriteria: 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: Insurance expense for the Hospital was claimed for all of 2021 under reporting period 1, and was also partially claimed under reporting period 4, resulting in duplicate expenses claimed in period 4.Cause: The Hospital?s review process over the period 4 expenses did not identify the duplicated insurance costs.Effect: Expenses included within the special report submitted to the Department of Health and Human Services for Period 4 TIN#466000400 relating to the duplicate insurance expenses were overstated by $26,616.Questioned Costs: No questioned costs reported. The Hospital reported significant unreimbursed expenses in the period 4 submission to cover the duplicated insurance costs. Key line items on the Period 4 report overstated Provider Relief Fund expenses by $26,616.Context/Sampling: Summary level testing was performed over mortgage, insurance, personnel costs for certain departments, and fringe benefits. Unreimbursed expenses were included in the summary level testing.Repeat Finding from Prior Years: YesRecommendation: We recommend management ensure any future expenditures submitted have not been previously claimed and are in accordance with the terms and conditions of the award.Views of Responsible Officials: Management agrees with the finding.
Finding 2022-004
2022-004 Department of Health and Human ServicesFederal Financial Assistance Listing #93.498COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN#466000400Activities Allowed or Unallowed and Allowable Costs/Cost PrinciplesSignificant Deficiency in Internal Control over Compliance and NoncomplianceReportingSignificant Deficiency in Internal Control over Compliance and NoncomplianceCriteria: 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: Insurance expense for the Hospital was claimed for all of 2021 under reporting period 1, and was also partially claimed under reporting period 4, resulting in duplicate expenses claimed in period 4.Cause: The Hospital?s review process over the period 4 expenses did not identify the duplicated insurance costs.Effect: Expenses included within the special report submitted to the Department of Health and Human Services for Period 4 TIN#466000400 relating to the duplicate insurance expenses were overstated by $26,616.Questioned Costs: No questioned costs reported. The Hospital reported significant unreimbursed expenses in the period 4 submission to cover the duplicated insurance costs. Key line items on the Period 4 report overstated Provider Relief Fund expenses by $26,616.Context/Sampling: Summary level testing was performed over mortgage, insurance, personnel costs for certain departments, and fringe benefits. Unreimbursed expenses were included in the summary level testing.Repeat Finding from Prior Years: YesRecommendation: We recommend management ensure any future expenditures submitted have not been previously claimed and are in accordance with the terms and conditions of the award.Views of Responsible Officials: Management agrees with the finding.
Finding 2022-003
2022-003 Department of Health and Human ServicesFederal Financial Assistance Listing #93.498COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN #466000400Preparation of the Schedule of Expenditures of Federal AwardsMaterial Weakness in Internal Control Over Compliance - OtherCriteria: Proper controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (schedule) and accompanying notes to the schedule.Condition: The Hospital does not have an internal control system designed to provide for the preparation of the schedule. As auditors, we were requested to assist 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 the Hospital meets a specified threshold of federal expenditures.Effect: There is reasonable possibility that the Hospital would not be able to draft the schedule that is correct without the assistance of the auditors.Questioned Costs: None reported.Context: Sampling was not used.Repeat Finding from Prior Years: YesRecommendation: 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 the Hospital?s schedule and the internal controls that impact financial reporting.Views of Responsible Officials: Management agrees with the finding.
Finding 2022-004
2022-004 Department of Health and Human ServicesFederal Financial Assistance Listing #93.498COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN#466000400Activities Allowed or Unallowed and Allowable Costs/Cost PrinciplesSignificant Deficiency in Internal Control over Compliance and NoncomplianceReportingSignificant Deficiency in Internal Control over Compliance and NoncomplianceCriteria: 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: Insurance expense for the Hospital was claimed for all of 2021 under reporting period 1, and was also partially claimed under reporting period 4, resulting in duplicate expenses claimed in period 4.Cause: The Hospital?s review process over the period 4 expenses did not identify the duplicated insurance costs.Effect: Expenses included within the special report submitted to the Department of Health and Human Services for Period 4 TIN#466000400 relating to the duplicate insurance expenses were overstated by $26,616.Questioned Costs: No questioned costs reported. The Hospital reported significant unreimbursed expenses in the period 4 submission to cover the duplicated insurance costs. Key line items on the Period 4 report overstated Provider Relief Fund expenses by $26,616.Context/Sampling: Summary level testing was performed over mortgage, insurance, personnel costs for certain departments, and fringe benefits. Unreimbursed expenses were included in the summary level testing.Repeat Finding from Prior Years: YesRecommendation: We recommend management ensure any future expenditures submitted have not been previously claimed and are in accordance with the terms and conditions of the award.Views of Responsible Officials: Management agrees with the finding.
Finding 2022-004
2022-004 Department of Health and Human ServicesFederal Financial Assistance Listing #93.498COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 4 TIN#466000400Activities Allowed or Unallowed and Allowable Costs/Cost PrinciplesSignificant Deficiency in Internal Control over Compliance and NoncomplianceReportingSignificant Deficiency in Internal Control over Compliance and NoncomplianceCriteria: 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: Insurance expense for the Hospital was claimed for all of 2021 under reporting period 1, and was also partially claimed under reporting period 4, resulting in duplicate expenses claimed in period 4.Cause: The Hospital?s review process over the period 4 expenses did not identify the duplicated insurance costs.Effect: Expenses included within the special report submitted to the Department of Health and Human Services for Period 4 TIN#466000400 relating to the duplicate insurance expenses were overstated by $26,616.Questioned Costs: No questioned costs reported. The Hospital reported significant unreimbursed expenses in the period 4 submission to cover the duplicated insurance costs. Key line items on the Period 4 report overstated Provider Relief Fund expenses by $26,616.Context/Sampling: Summary level testing was performed over mortgage, insurance, personnel costs for certain departments, and fringe benefits. Unreimbursed expenses were included in the summary level testing.Repeat Finding from Prior Years: YesRecommendation: We recommend management ensure any future expenditures submitted have not been previously claimed and are in accordance with the terms and conditions of the award.Views of Responsible Officials: Management agrees with the finding.