FAC Explorer

Audit 321987

FY End
2022-12-31
Total Expended
$11.96M
Findings
2
Programs
4
Organization: King County Public Hospital District #2 Dba Evergreen Healthcare (WA)
Year: 2022 Accepted: 2024-09-27
Auditor: Kpmg LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
499189 2022-001 Material Weakness - L
1075631 2022-001 Material Weakness - L

Programs

ALN Program Spent Major Findings
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $7.62M Yes 1
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $3.84M Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $309,670 - 0
93.855 Allergy and Infectious Diseases Research $192,702 - 0

Contacts

Name Title Type
PQLDK3TL8FN7 Daria Heimerman Auditee
4258991685 Amy Banovich Auditor
No contacts on file

Notes to SEFA

Title: (2) Summary of Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of King County Public Hospital District No. 2 d/b/a EvergreenHealth (the District) under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The District’s organizational structure is defined in note 1 of the notes to the District’s financial statements. All federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through from other government agencies or organizations, have been included in the accompanying Schedule. Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the net position, changes in net position, or cash flows of the District. De Minimis Rate Used: N Rate Explanation: N/A Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized as applicable, following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The District does not provide funding to subrecipients
Title: (3) Indirect Cost Rates Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of King County Public Hospital District No. 2 d/b/a EvergreenHealth (the District) under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The District’s organizational structure is defined in note 1 of the notes to the District’s financial statements. All federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through from other government agencies or organizations, have been included in the accompanying Schedule. Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the net position, changes in net position, or cash flows of the District. De Minimis Rate Used: N Rate Explanation: N/A The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: (4) Personal Protective Equipment Receipts (Unaudited) Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of King County Public Hospital District No. 2 d/b/a EvergreenHealth (the District) under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The District’s organizational structure is defined in note 1 of the notes to the District’s financial statements. All federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through from other government agencies or organizations, have been included in the accompanying Schedule. Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the net position, changes in net position, or cash flows of the District. De Minimis Rate Used: N Rate Explanation: N/A During the year ended December 31, 2022, the District did not receive donated personal protective equipment from various governmental entities.
Title: (5) Restatement of Schedule of Expenditures of Federal Awards Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of King County Public Hospital District No. 2 d/b/a EvergreenHealth (the District) under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The District’s organizational structure is defined in note 1 of the notes to the District’s financial statements. All federal financial assistance received directly from federal agencies, as well as federal financial assistance passed through from other government agencies or organizations, have been included in the accompanying Schedule. Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the net position, changes in net position, or cash flows of the District. De Minimis Rate Used: N Rate Explanation: N/A The Schedule has been restated to include additional expenditures of $1,795,854 for the COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) (ALN 97.036). These expenditures were inadvertently omitted from the Schedule.

Finding Details

Finding 2022-001
Finding Number: 2022-001 Program: COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) Federal Agency Name: Federal Emergency Management Agency Federal Award Number: N/A Federal Award Year: 2022 Federal Assistance Listing Number: 97.036 Compliance Requirement: Other – Inaccurate Reporting on the Schedule of Expenditures of Federal Awards Criteria According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of federal awards (Schedule) for the period covered by the entity’s financial statements, which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR 200.303 requires non-Federal entities receiving federal awards to establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately and completely reported on the Schedule. Conditions Found The District did not have adequate internal controls related to the reporting of expenditures on the Schedule for the COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) program (FEMA). Specifically, the District’s review controls over the accuracy and completeness of the Schedule were not designed to operate at an appropriate level of precision for its discretely presented component unit. As a result, $1,795,854 of FEMA expenditures had been inadvertently omitted from the December 31, 2022 Schedule. Cause In discussing the conditions with District management, they stated the error was caused by the management review controls in place not operating at a sufficient level of precision to detect the error. Effect Failure to establish effective internal controls over the preparation of the Schedule may prevent the District from completing an audit in accordance with Uniform Guidance. Questioned Costs Not applicable. Statistical Sample Not applicable. Repeat Finding This finding is not a repeat finding in the immediate prior audit. Recommendation We recommend that the District implement a system of internal control that is designed and operating at a level of precision to ensure the Schedule is complete and accurate. Views of Responsible Officials The District agrees with the finding and accepts the recommendation.
Finding 2022-001
Finding Number: 2022-001 Program: COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) Federal Agency Name: Federal Emergency Management Agency Federal Award Number: N/A Federal Award Year: 2022 Federal Assistance Listing Number: 97.036 Compliance Requirement: Other – Inaccurate Reporting on the Schedule of Expenditures of Federal Awards Criteria According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of federal awards (Schedule) for the period covered by the entity’s financial statements, which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, 2 CFR 200.303 requires non-Federal entities receiving federal awards to establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately and completely reported on the Schedule. Conditions Found The District did not have adequate internal controls related to the reporting of expenditures on the Schedule for the COVID-19 Disaster Grants – Public Assistance (Presidentially Declared Disasters) program (FEMA). Specifically, the District’s review controls over the accuracy and completeness of the Schedule were not designed to operate at an appropriate level of precision for its discretely presented component unit. As a result, $1,795,854 of FEMA expenditures had been inadvertently omitted from the December 31, 2022 Schedule. Cause In discussing the conditions with District management, they stated the error was caused by the management review controls in place not operating at a sufficient level of precision to detect the error. Effect Failure to establish effective internal controls over the preparation of the Schedule may prevent the District from completing an audit in accordance with Uniform Guidance. Questioned Costs Not applicable. Statistical Sample Not applicable. Repeat Finding This finding is not a repeat finding in the immediate prior audit. Recommendation We recommend that the District implement a system of internal control that is designed and operating at a level of precision to ensure the Schedule is complete and accurate. Views of Responsible Officials The District agrees with the finding and accepts the recommendation.