Audit 317132

FY End

2021-12-31

Total Expended

$14.79M

Findings

4

Programs

3

Organization: Putnam County Hospital (IN)

Year: 2021 Accepted: 2024-08-13

Auditor: Blue & CO LLC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
481026	2021-002	-	-	L
481027	2021-003	Significant Deficiency	-	L
1057468	2021-002	-	-	L
1057469	2021-003	Significant Deficiency	-	L

ALN	Program	Spent	Major	Findings
93.498	Provider Relief Fund	$14.43M	Yes	2
93.697	Covid-19 Testing for Rural Health Clinics	$300,000	-	0
93.461	Covid-19 Testing for the Uninsured	$54,116	-	0

Contacts

Name	Title	Type
P321EA11F3R2	Alan Nerone	Auditee
7653017532	Alan Parks	Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the SEFA 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. The Hospital has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Auditee does not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (SEFA) for 2021 includes the federal grant activity of Putnam County Hospital (the Hospital) and is presented on the accrual basis of accounting. The information in the SEFA 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). The basic financial statement classifications may include other financial activity for reporting purposes. Therefore, some of the amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the basic financial statements.

Title: SUBRECIPIENT PASS-THROUGH Accounting Policies: Expenditures reported on the SEFA 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. The Hospital has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Auditee does not use the de minimis cost rate. No entities received pass-through federal awards from the Hospital during 2021.

Title: PROVIDER RELIEF FUNDS Accounting Policies: Expenditures reported on the SEFA 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. The Hospital has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Auditee does not use the de minimis cost rate. Under terms and conditions of the American Rescue Plan (ARP) and the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Hospital is required to report COVID-19 related expenses and lost revenue to the US Department of Health and Human Services (DHHS). Guidance from DHHS has required the reporting of the COVID-19 related expenses and lost revenue and expenses in certain reporting periods based on when the funds were received. DHHS requires amounts received prior to December 31, 2020, and expended through December 31, 2021, to be reported on the 2021 Schedule rather than the 2020 Schedule. As such, the Hospital received approximately $14,432,000 in COVID-19 grants prior to December 31, 2020 while recording $3,212,000 as unearned grant revenue as of December 31, 2020. During 2021, the Hospital received $5,584,000 in COVID-19 grant funds with $-0- reported as unearned grant revenue as of December 31, 2021. During 2021 and 2020, the Hospital recognized $8,796,000 and $11,220,000 as revenue in its 2021 and 2020 statements of revenues, expenses and changes in net position, respectively, as the terms and conditions of the PRF grant were satisfied. ARP and CARES grants received and also recognized as revenue in 2021 will be reported on the 2022 Schedule as required by DHHS.

Title: FAIR MARKET VALUE OF DONATED PERSONAL PROTECTIVE EQUIPMENT (UNAUDITED) Accounting Policies: Expenditures reported on the SEFA 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. The Hospital has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Auditee does not use the de minimis cost rate. During 2021, the Hospital did not receive donated personal protective equipment from federal sources.

Finding Details

Finding 2021-002

2021-002 – Other Matters - Submission of Single Audit reporting package Criteria – The Single Audit reporting package is due to the Federal Audit Clearinghouse within nine months after year end as stated in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subpart F, Section 200.512(a)(1). Condition – The Single Audit reporting package was not submitted within this timeframe. Questioned costs - $-0- Context – Single Audit requirements direct the grant recipient to comply with the filing requisites. Effect - The Single Audit reporting package was not submitted to the Federal Audit Clearinghouse within the timeframe which resulted in an instance of noncompliance. Cause – Due to delays in completing the financial statement audit, the Single Audit reporting package was not submitted to the Federal Audit Clearinghouse within the timeframe. Recommendation – We recommend the Hospital file the Single Audit reporting package with the Federal Audit Clearinghouse. Views of Responsible Officials and Planned Corrective Actions – Management understands the due date for Single Audit reporting package submission to the Federal Audit Clearinghouse and will file the Single Audit reporting package as soon as possible.

Finding 2021-003

2021-003 – Significant deficiency related to timely preparation of Schedule of Expenditures of Federal Awards Criteria – The preparation of the Schedule of Expenditures of Federal Awards (SEFA) is necessary to satisfy the reporting requirements for federal programs identified as major programs. Condition – The SEFA was not prepared on a timely basis. Questioned costs - $-0- Context – The timely preparation of the SEFA is necessary to satisfy reporting requirements related to federal programs identified as major programs. Effect - The SEFA was not prepared on a timely basis resulting in delays in completing reporting requirements for federal programs identified as major programs. Cause – Due to delays in completing the financial statement audit, the SEFA was not completed on a timely basis. Recommendation – We recommend the Hospital complete the SEFA on a timely basis to assist with the reporting requirements for federal programs identified as major programs. Views of Responsible Officials and Planned Corrective Actions – Management has implemented internal controls over compliance in place to assist with the timely preparation of the SEFA.

Finding 2021-002

2021-002 – Other Matters - Submission of Single Audit reporting package Criteria – The Single Audit reporting package is due to the Federal Audit Clearinghouse within nine months after year end as stated in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Subpart F, Section 200.512(a)(1). Condition – The Single Audit reporting package was not submitted within this timeframe. Questioned costs - $-0- Context – Single Audit requirements direct the grant recipient to comply with the filing requisites. Effect - The Single Audit reporting package was not submitted to the Federal Audit Clearinghouse within the timeframe which resulted in an instance of noncompliance. Cause – Due to delays in completing the financial statement audit, the Single Audit reporting package was not submitted to the Federal Audit Clearinghouse within the timeframe. Recommendation – We recommend the Hospital file the Single Audit reporting package with the Federal Audit Clearinghouse. Views of Responsible Officials and Planned Corrective Actions – Management understands the due date for Single Audit reporting package submission to the Federal Audit Clearinghouse and will file the Single Audit reporting package as soon as possible.

Finding 2021-003

2021-003 – Significant deficiency related to timely preparation of Schedule of Expenditures of Federal Awards Criteria – The preparation of the Schedule of Expenditures of Federal Awards (SEFA) is necessary to satisfy the reporting requirements for federal programs identified as major programs. Condition – The SEFA was not prepared on a timely basis. Questioned costs - $-0- Context – The timely preparation of the SEFA is necessary to satisfy reporting requirements related to federal programs identified as major programs. Effect - The SEFA was not prepared on a timely basis resulting in delays in completing reporting requirements for federal programs identified as major programs. Cause – Due to delays in completing the financial statement audit, the SEFA was not completed on a timely basis. Recommendation – We recommend the Hospital complete the SEFA on a timely basis to assist with the reporting requirements for federal programs identified as major programs. Views of Responsible Officials and Planned Corrective Actions – Management has implemented internal controls over compliance in place to assist with the timely preparation of the SEFA.