Audit 31947

FY End
2022-05-31
Total Expended
$4.80M
Findings
16
Programs
5
Year: 2022 Accepted: 2022-12-28
Auditor: Terry Horne CPA

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
28740 2022-003 Material Weakness - I
28741 2022-004 Material Weakness - L
28742 2022-003 Material Weakness - I
28743 2022-004 Material Weakness - L
28744 2022-003 Material Weakness - I
28745 2022-004 Material Weakness - L
28746 2022-003 Material Weakness - I
28747 2022-004 Material Weakness - L
605182 2022-003 Material Weakness - I
605183 2022-004 Material Weakness - L
605184 2022-003 Material Weakness - I
605185 2022-004 Material Weakness - L
605186 2022-003 Material Weakness - I
605187 2022-004 Material Weakness - L
605188 2022-003 Material Weakness - I
605189 2022-004 Material Weakness - L

Contacts

Name Title Type
KQJ5UKZJ57M7 Bart Miles Auditee
8039006464 Terry Horne Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Note A- Basis of PresentationThe accompanying schedule of expenditures of federal awards includes the federal award (the Schedule) of Sandhills Medical Foundation, Inc. under programs of the federal government for the year ended May 31, 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 Sandhills Medical Foundation, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Sandhills Medical Foundation, Inc.Note B-Summary of Significant Accounting PoliciesExpenditures 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Sandhills Medical Foundation, Inc. has elected not to use the 10 percent de minimus indirect cost rate allowed under Uniform Guidance.Note C- SubrecipientsThe Organization had the following loan balance outstanding at May 31, 2022:Program TitleFederal CFDA NumberAmount OutstandingCommunity Facilities Loan10.766$1,253,463 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding: 2022-003 Procurement, Suspension and Debarment Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Procurement, Suspension, and Debarment Condition: The Organization did not follow its policy governing procurement requirements for the purchase of goods or services. Cause: The Organization did not obtain quotes or bids for certain expenditures or use purchase orders as required by the Organization?s procurement policy. Effect: Purchases were made that did not adhere to the Organization?s procurement policy. Questioned Costs: None reported Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that procurement controls be implemented to ensure that quotes or bids and purchase orders are obtained as required by the Organization?s procurement policy. The Organization?s procurement policies should also be updated to conform to the Uniform Guidance procurement thresholds. Views of Responsible Officials: Management concurs. Policies will be updated, and employees will be trained to ensure compliance of the procurement requirements. Contact Person: Bart Miles, CFO Anticipated Date of Completion: January 31, 2023
Finding: 2022-004 Uniform Data System Report Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Reporting ? Uniform Data System Condition: The Uniform Data System (UDS) report submitted to the U.S. Department of Health and Human Services (DHHS) for the year ended December 31, 2021, contained incorrect data for total expenses and patient charges. The expenses were overstated on Table 8A of the UDS report by approximately $682,000. The charges were understated on Table 9D of the UDS report by approximately $680,000. Cause: The above exception resulted from errors in preparing Table 8A and 9D of the Uniform Data System report. Effect: The DHHS reviews the UDS data for financial analysis for grant recipients. Errors in this data causes incorrect financial analysis results and distorted performance indicators. Questioned Costs: None reported Context/Sampling: The finding appears to be a systematic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that a system should be developed to ensure that total expenses and patient charges as reported in the Organization?s financial reporting system are reconciled to the UDS report. Views of Responsible Officials: Management concurs. Efforts will be made to ensure that expenses and charges are reconciled from the financial reporting system to expenses on the UDS report. Contact Person: Bart Miles, CFO Anticipated Date of Completion: January 31, 2023
Finding: 2022-003 Procurement, Suspension and Debarment Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Procurement, Suspension, and Debarment Condition: The Organization did not follow its policy governing procurement requirements for the purchase of goods or services. Cause: The Organization did not obtain quotes or bids for certain expenditures or use purchase orders as required by the Organization?s procurement policy. Effect: Purchases were made that did not adhere to the Organization?s procurement policy. Questioned Costs: None reported Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that procurement controls be implemented to ensure that quotes or bids and purchase orders are obtained as required by the Organization?s procurement policy. The Organization?s procurement policies should also be updated to conform to the Uniform Guidance procurement thresholds. Views of Responsible Officials: Management concurs. Policies will be updated, and employees will be trained to ensure compliance of the procurement requirements. Contact Person: Bart Miles, CFO Anticipated Date of Completion: January 31, 2023
Finding: 2022-004 Uniform Data System Report Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Reporting ? Uniform Data System Condition: The Uniform Data System (UDS) report submitted to the U.S. Department of Health and Human Services (DHHS) for the year ended December 31, 2021, contained incorrect data for total expenses and patient charges. The expenses were overstated on Table 8A of the UDS report by approximately $682,000. The charges were understated on Table 9D of the UDS report by approximately $680,000. Cause: The above exception resulted from errors in preparing Table 8A and 9D of the Uniform Data System report. Effect: The DHHS reviews the UDS data for financial analysis for grant recipients. Errors in this data causes incorrect financial analysis results and distorted performance indicators. Questioned Costs: None reported Context/Sampling: The finding appears to be a systematic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that a system should be developed to ensure that total expenses and patient charges as reported in the Organization?s financial reporting system are reconciled to the UDS report. Views of Responsible Officials: Management concurs. Efforts will be made to ensure that expenses and charges are reconciled from the financial reporting system to expenses on the UDS report. Contact Person: Bart Miles, CFO Anticipated Date of Completion: January 31, 2023
Finding: 2022-003 Procurement, Suspension and Debarment Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Procurement, Suspension, and Debarment Condition: The Organization did not follow its policy governing procurement requirements for the purchase of goods or services. Cause: The Organization did not obtain quotes or bids for certain expenditures or use purchase orders as required by the Organization?s procurement policy. Effect: Purchases were made that did not adhere to the Organization?s procurement policy. Questioned Costs: None reported Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that procurement controls be implemented to ensure that quotes or bids and purchase orders are obtained as required by the Organization?s procurement policy. The Organization?s procurement policies should also be updated to conform to the Uniform Guidance procurement thresholds. Views of Responsible Officials: Management concurs. Policies will be updated, and employees will be trained to ensure compliance of the procurement requirements. Contact Person: Bart Miles, CFO Anticipated Date of Completion: January 31, 2023
Finding: 2022-004 Uniform Data System Report Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Reporting ? Uniform Data System Condition: The Uniform Data System (UDS) report submitted to the U.S. Department of Health and Human Services (DHHS) for the year ended December 31, 2021, contained incorrect data for total expenses and patient charges. The expenses were overstated on Table 8A of the UDS report by approximately $682,000. The charges were understated on Table 9D of the UDS report by approximately $680,000. Cause: The above exception resulted from errors in preparing Table 8A and 9D of the Uniform Data System report. Effect: The DHHS reviews the UDS data for financial analysis for grant recipients. Errors in this data causes incorrect financial analysis results and distorted performance indicators. Questioned Costs: None reported Context/Sampling: The finding appears to be a systematic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that a system should be developed to ensure that total expenses and patient charges as reported in the Organization?s financial reporting system are reconciled to the UDS report. Views of Responsible Officials: Management concurs. Efforts will be made to ensure that expenses and charges are reconciled from the financial reporting system to expenses on the UDS report. Contact Person: Bart Miles, CFO Anticipated Date of Completion: January 31, 2023
Finding: 2022-003 Procurement, Suspension and Debarment Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Procurement, Suspension, and Debarment Condition: The Organization did not follow its policy governing procurement requirements for the purchase of goods or services. Cause: The Organization did not obtain quotes or bids for certain expenditures or use purchase orders as required by the Organization?s procurement policy. Effect: Purchases were made that did not adhere to the Organization?s procurement policy. Questioned Costs: None reported Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that procurement controls be implemented to ensure that quotes or bids and purchase orders are obtained as required by the Organization?s procurement policy. The Organization?s procurement policies should also be updated to conform to the Uniform Guidance procurement thresholds. Views of Responsible Officials: Management concurs. Policies will be updated, and employees will be trained to ensure compliance of the procurement requirements. Contact Person: Bart Miles, CFO Anticipated Date of Completion: January 31, 2023
Finding: 2022-004 Uniform Data System Report Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Reporting ? Uniform Data System Condition: The Uniform Data System (UDS) report submitted to the U.S. Department of Health and Human Services (DHHS) for the year ended December 31, 2021, contained incorrect data for total expenses and patient charges. The expenses were overstated on Table 8A of the UDS report by approximately $682,000. The charges were understated on Table 9D of the UDS report by approximately $680,000. Cause: The above exception resulted from errors in preparing Table 8A and 9D of the Uniform Data System report. Effect: The DHHS reviews the UDS data for financial analysis for grant recipients. Errors in this data causes incorrect financial analysis results and distorted performance indicators. Questioned Costs: None reported Context/Sampling: The finding appears to be a systematic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that a system should be developed to ensure that total expenses and patient charges as reported in the Organization?s financial reporting system are reconciled to the UDS report. Views of Responsible Officials: Management concurs. Efforts will be made to ensure that expenses and charges are reconciled from the financial reporting system to expenses on the UDS report. Contact Person: Bart Miles, CFO Anticipated Date of Completion: January 31, 2023
Finding: 2022-003 Procurement, Suspension and Debarment Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Procurement, Suspension, and Debarment Condition: The Organization did not follow its policy governing procurement requirements for the purchase of goods or services. Cause: The Organization did not obtain quotes or bids for certain expenditures or use purchase orders as required by the Organization?s procurement policy. Effect: Purchases were made that did not adhere to the Organization?s procurement policy. Questioned Costs: None reported Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that procurement controls be implemented to ensure that quotes or bids and purchase orders are obtained as required by the Organization?s procurement policy. The Organization?s procurement policies should also be updated to conform to the Uniform Guidance procurement thresholds. Views of Responsible Officials: Management concurs. Policies will be updated, and employees will be trained to ensure compliance of the procurement requirements. Contact Person: Bart Miles, CFO Anticipated Date of Completion: January 31, 2023
Finding: 2022-004 Uniform Data System Report Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Reporting ? Uniform Data System Condition: The Uniform Data System (UDS) report submitted to the U.S. Department of Health and Human Services (DHHS) for the year ended December 31, 2021, contained incorrect data for total expenses and patient charges. The expenses were overstated on Table 8A of the UDS report by approximately $682,000. The charges were understated on Table 9D of the UDS report by approximately $680,000. Cause: The above exception resulted from errors in preparing Table 8A and 9D of the Uniform Data System report. Effect: The DHHS reviews the UDS data for financial analysis for grant recipients. Errors in this data causes incorrect financial analysis results and distorted performance indicators. Questioned Costs: None reported Context/Sampling: The finding appears to be a systematic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that a system should be developed to ensure that total expenses and patient charges as reported in the Organization?s financial reporting system are reconciled to the UDS report. Views of Responsible Officials: Management concurs. Efforts will be made to ensure that expenses and charges are reconciled from the financial reporting system to expenses on the UDS report. Contact Person: Bart Miles, CFO Anticipated Date of Completion: January 31, 2023
Finding: 2022-003 Procurement, Suspension and Debarment Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Procurement, Suspension, and Debarment Condition: The Organization did not follow its policy governing procurement requirements for the purchase of goods or services. Cause: The Organization did not obtain quotes or bids for certain expenditures or use purchase orders as required by the Organization?s procurement policy. Effect: Purchases were made that did not adhere to the Organization?s procurement policy. Questioned Costs: None reported Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that procurement controls be implemented to ensure that quotes or bids and purchase orders are obtained as required by the Organization?s procurement policy. The Organization?s procurement policies should also be updated to conform to the Uniform Guidance procurement thresholds. Views of Responsible Officials: Management concurs. Policies will be updated, and employees will be trained to ensure compliance of the procurement requirements. Contact Person: Bart Miles, CFO Anticipated Date of Completion: January 31, 2023
Finding: 2022-004 Uniform Data System Report Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Reporting ? Uniform Data System Condition: The Uniform Data System (UDS) report submitted to the U.S. Department of Health and Human Services (DHHS) for the year ended December 31, 2021, contained incorrect data for total expenses and patient charges. The expenses were overstated on Table 8A of the UDS report by approximately $682,000. The charges were understated on Table 9D of the UDS report by approximately $680,000. Cause: The above exception resulted from errors in preparing Table 8A and 9D of the Uniform Data System report. Effect: The DHHS reviews the UDS data for financial analysis for grant recipients. Errors in this data causes incorrect financial analysis results and distorted performance indicators. Questioned Costs: None reported Context/Sampling: The finding appears to be a systematic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that a system should be developed to ensure that total expenses and patient charges as reported in the Organization?s financial reporting system are reconciled to the UDS report. Views of Responsible Officials: Management concurs. Efforts will be made to ensure that expenses and charges are reconciled from the financial reporting system to expenses on the UDS report. Contact Person: Bart Miles, CFO Anticipated Date of Completion: January 31, 2023
Finding: 2022-003 Procurement, Suspension and Debarment Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Procurement, Suspension, and Debarment Condition: The Organization did not follow its policy governing procurement requirements for the purchase of goods or services. Cause: The Organization did not obtain quotes or bids for certain expenditures or use purchase orders as required by the Organization?s procurement policy. Effect: Purchases were made that did not adhere to the Organization?s procurement policy. Questioned Costs: None reported Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that procurement controls be implemented to ensure that quotes or bids and purchase orders are obtained as required by the Organization?s procurement policy. The Organization?s procurement policies should also be updated to conform to the Uniform Guidance procurement thresholds. Views of Responsible Officials: Management concurs. Policies will be updated, and employees will be trained to ensure compliance of the procurement requirements. Contact Person: Bart Miles, CFO Anticipated Date of Completion: January 31, 2023
Finding: 2022-004 Uniform Data System Report Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Reporting ? Uniform Data System Condition: The Uniform Data System (UDS) report submitted to the U.S. Department of Health and Human Services (DHHS) for the year ended December 31, 2021, contained incorrect data for total expenses and patient charges. The expenses were overstated on Table 8A of the UDS report by approximately $682,000. The charges were understated on Table 9D of the UDS report by approximately $680,000. Cause: The above exception resulted from errors in preparing Table 8A and 9D of the Uniform Data System report. Effect: The DHHS reviews the UDS data for financial analysis for grant recipients. Errors in this data causes incorrect financial analysis results and distorted performance indicators. Questioned Costs: None reported Context/Sampling: The finding appears to be a systematic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that a system should be developed to ensure that total expenses and patient charges as reported in the Organization?s financial reporting system are reconciled to the UDS report. Views of Responsible Officials: Management concurs. Efforts will be made to ensure that expenses and charges are reconciled from the financial reporting system to expenses on the UDS report. Contact Person: Bart Miles, CFO Anticipated Date of Completion: January 31, 2023
Finding: 2022-003 Procurement, Suspension and Debarment Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Procurement, Suspension, and Debarment Condition: The Organization did not follow its policy governing procurement requirements for the purchase of goods or services. Cause: The Organization did not obtain quotes or bids for certain expenditures or use purchase orders as required by the Organization?s procurement policy. Effect: Purchases were made that did not adhere to the Organization?s procurement policy. Questioned Costs: None reported Context/Sampling: The finding appears to be a systemic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that procurement controls be implemented to ensure that quotes or bids and purchase orders are obtained as required by the Organization?s procurement policy. The Organization?s procurement policies should also be updated to conform to the Uniform Guidance procurement thresholds. Views of Responsible Officials: Management concurs. Policies will be updated, and employees will be trained to ensure compliance of the procurement requirements. Contact Person: Bart Miles, CFO Anticipated Date of Completion: January 31, 2023
Finding: 2022-004 Uniform Data System Report Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Uniform Guidance, Reporting ? Uniform Data System Condition: The Uniform Data System (UDS) report submitted to the U.S. Department of Health and Human Services (DHHS) for the year ended December 31, 2021, contained incorrect data for total expenses and patient charges. The expenses were overstated on Table 8A of the UDS report by approximately $682,000. The charges were understated on Table 9D of the UDS report by approximately $680,000. Cause: The above exception resulted from errors in preparing Table 8A and 9D of the Uniform Data System report. Effect: The DHHS reviews the UDS data for financial analysis for grant recipients. Errors in this data causes incorrect financial analysis results and distorted performance indicators. Questioned Costs: None reported Context/Sampling: The finding appears to be a systematic issue. Repeat Finding from Prior Year: No Recommendation: It is recommended that a system should be developed to ensure that total expenses and patient charges as reported in the Organization?s financial reporting system are reconciled to the UDS report. Views of Responsible Officials: Management concurs. Efforts will be made to ensure that expenses and charges are reconciled from the financial reporting system to expenses on the UDS report. Contact Person: Bart Miles, CFO Anticipated Date of Completion: January 31, 2023