FAC Explorer

Audit 316922

FY End
2023-09-30
Total Expended
$25.66M
Findings
2
Programs
5
Organization: Southwest Mississippi Regional Medical Center (MS)
Year: 2023 Accepted: 2024-08-08
Auditor: Carr Riggs & Ingram LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
480695 2023-001 Significant Deficiency - AB
1057137 2023-001 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $18.03M - 0
93.498 Covid-19 Provider Relief Fund $6.48M Yes 1
93.493 Congressional Directives $574,407 - 0
93.155 Rural Health Research Centers $325,346 - 0
93.155 Covid-19 Rural Health Research Centers $250,000 - 0

Contacts

Name Title Type
NKE2DK76B424 Mallory Ginn Auditee
6012504235 Amy Verberne Auditor
No contacts on file

Notes to SEFA

Title: Note 1: BASIS OF PRESENTATION Accounting Policies: Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting Expenditures reported in the Schedule are reported on the accrual basis of accounting. 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. For assistance listing number 93.498, Provider Relief Funds (PRF), amounts reported in the Schedule represent PRF funds received by the Medical Center during the period July 1, 2021 to December 31, 2021 (Period 4), that were required to be used by December 31, 2022, and that were reported in the PRF portal for the reporting time period January 1, 2023 through March 31, 2023. The Medical Center did not receive any funds from January 1, 2022 to June 30, 2022 (Period 5) that were required to be reported in the PRF portal for the reporting time period of July 1, 2023 to September 30, 2023. Loan / Loan Guarantee Outstanding Balances The balance of loans outstanding at September 30, 2023 for the Community Facilities Loans and Grants Cluster (Federal Assistance Listing Number 10.766) was $17,197,362. The outstanding balance of loans at the beginning of the year are included in the federal expenditures presented in the Schedule. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate The Uniform Guidance allows an organization to elect a 10% de minimis indirect cost rate. For the year ended September 30, 2023, the Medical Center did not elect to use this rate. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Southwest Mississippi Regional Medical Center (the “Medical Center”) under programs of the federal government for the year ended September 30, 2023. The information in the 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 Medical Center, it is not intended to and does not present the net position, changes in net position, or cash flows of the Medical Center.

Finding Details

Finding 2023-001
Finding 2023-001 – Allowable Activities and Costs of Provider Relief Fund Significant Deficiency in Internal Control over Compliance Program: COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Federal Assistance Listing Number: 93.498 Federal Grantor: U.S. Department of Health and Human Services Pass-Through Entity: None Criteria: Per 2 CFR 200.430(i), personnel costs charged to federal grants are required to be supported by documentation including time records. Per 2 CFR 200.303, a non-federal entity must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and terms and conditions of the Federal award. Condition: Our audit procedures over the calculation of COVID patient days used to allocate the payroll cost to the PRF/ARP federal program disclosed the amounts were not properly calculated. Cause: The Medical Center has controls in place to review the calculation; however, the control did not operate to identify an error in the calculation of COVID patient days. Effect: The error in the calculation resulted in underreporting payroll costs allowed to be charged to PRF/ARP in the amount of $566,272. Questioned Costs: None Perspective: The error in the calculation resulted in underreporting payroll costs allowed to be charged to PRF/ARP in the amount of $566,272. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Medical Center implement additional internal controls over compliance in order to properly identify any errors in calculation. View of Responsible Officials: See management’s response to the finding in the accompanying Corrective Action Plan.
Finding 2023-001
Finding 2023-001 – Allowable Activities and Costs of Provider Relief Fund Significant Deficiency in Internal Control over Compliance Program: COVID-19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Federal Assistance Listing Number: 93.498 Federal Grantor: U.S. Department of Health and Human Services Pass-Through Entity: None Criteria: Per 2 CFR 200.430(i), personnel costs charged to federal grants are required to be supported by documentation including time records. Per 2 CFR 200.303, a non-federal entity must establish and maintain effective internal control over Federal awards that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and terms and conditions of the Federal award. Condition: Our audit procedures over the calculation of COVID patient days used to allocate the payroll cost to the PRF/ARP federal program disclosed the amounts were not properly calculated. Cause: The Medical Center has controls in place to review the calculation; however, the control did not operate to identify an error in the calculation of COVID patient days. Effect: The error in the calculation resulted in underreporting payroll costs allowed to be charged to PRF/ARP in the amount of $566,272. Questioned Costs: None Perspective: The error in the calculation resulted in underreporting payroll costs allowed to be charged to PRF/ARP in the amount of $566,272. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Medical Center implement additional internal controls over compliance in order to properly identify any errors in calculation. View of Responsible Officials: See management’s response to the finding in the accompanying Corrective Action Plan.