FAC Explorer

Audit 323504

FY End
2023-12-31
Total Expended
$7.06M
Findings
4
Programs
8
Organization: Logan Health (MT)
Year: 2023 Accepted: 2024-10-01
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
501230 2023-001 Material Weakness - P
501231 2023-001 Material Weakness - P
1077672 2023-001 Material Weakness - P
1077673 2023-001 Material Weakness - P

Programs

ALN Program Spent Major Findings
93.498 Covid-19 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $5.66M Yes 1
93.575 Child Care and Development Block Grant $385,968 - 0
93.391 Covid-19 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $152,667 - 0
93.301 Small Rural Hospital Improvement Grant Program $41,050 - 0
93.435 The Innovative Cardiovascular Health Program $40,000 - 0
10.558 Child and Adult Care Food Program $27,255 - 0
93.110 Maternal and Child Health Federal Consolidated Programs $20,510 - 0
93.107 Area Health Education Centers $20,075 - 0

Contacts

Name Title Type
EBQ5M7RU4RJ7 Courtney Schwartz Auditee
4067515759 Renee Gravalin Auditor
No contacts on file

Notes to SEFA

Title: Principles of Consolidation Accounting Policies: The accompanying consolidated schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Logan Health and Subsidiaries (Corporation) under programs of the federal government for the nine months ended December 31, 2023. 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 Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Corporation. 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. No federal assistance has been provided to a subrecipient. De Minimis Rate Used: Y Rate Explanation: The Corporation has elected to use the 10% de minimis cost rate for certain grants. The consolidated schedule of expenditures of federal awards includes the federal grant activity of Logan Health and its consolidated subsidiaries (collectively, the Corporation), which received federal financial assistance. Significant intercompany balances and transactions have been eliminated in the consolidated schedule of expenditures of federal awards. The following entities and their associated TIN numbers included within the Schedule are as follows: 237293874 Kalispell Regional Medical Center d/b/a Logan Health Medical Center (LHMC) 810540517 HealthCenter Northwest, LLC (HC) (merged into LHMC effective December 31, 2020) 371518772 Northwest Orthopedics and Sports Medicine, LLC (NOSM) (merged into LHMC Effective December 31, 2020) 810413632 Applied Health Services, Inc. (AHS) 810420653 Northwest Horizons, Inc. (NWH) 810530457 Logan Health Cut Bank (LH Cut Bank) 810232406 Logan Health Conrad (LH Conrad) 810515463 Logan Health Chester (LH Chester) The accompanying Schedule does not include federal grant activity of the following subsidiaries: Logan Health Fitness Center, Inc; Flathead Hospital Development Company, LLC; Logan Health Whitefish; Logan Health Shelby; or Montana Pediatrics as these organizations did not expend any federal grant dollars during the nine month period.
Title: Provider Relief Funds and American Rescue Plan (ARP) Rural Distribution Accounting Policies: The accompanying consolidated schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Logan Health and Subsidiaries (Corporation) under programs of the federal government for the nine months ended December 31, 2023. 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 Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Corporation. 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. No federal assistance has been provided to a subrecipient. De Minimis Rate Used: Y Rate Explanation: The Corporation has elected to use the 10% de minimis cost rate for certain grants. The Corporation received funds from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) program (Federal Financial Assistance Listing #93.498), which were included within the Provider Relief Fund contribution line of the consolidated statements of operations. For the nine month period ended December 31,2023 and the year ended March 31, 2023, the Corporation recorded $216,309 and $5,446,968 of PRF funds related to Period 5 and Period 6 (defined below). The PRF expenditures are recognized on the Schedule when the expenditures were included in the reporting to HHS for Period 5, defined as payments received between January 1, 2022 and June 30, 2022; and for Period 6, defined as payments received between July 1, 2022 and December 31, 2022. The amounts recognized in the Schedule for Periods 5 and 6, including interest, were $5,123,083 and $540,194, respectively. The total amount of PRF expenditures included on the SEFA requires management to make estimates and assumptions that affect the reported amounts. Accordingly, such expenditures are considered a significant estimate. Estimates and assumptions may include reducing actual expenses by amounts that have been reimbursed or are obligated to be reimbursed by other sources and estimating marginal increases in expenses related to coronavirus. Actual amounts could differ from those estimates.

Finding Details

Finding 2023-001
2023-001 Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relied Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year – Period 5 and 6 TIN #237293874; #810540517; #371518772; #810413632; #810420653 Department of Health and Human Services All grant awards from pass-through entities Federal Assistance Listing #93.391 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crisis Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance - Other Criteria –A good system of internal accounting control contemplates an adequate system for preparing the consolidated schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition – The Corporation does not have an internal control system designed to provide for a complete and accurate Schedule being prepared for audit. Cause – During the course of our engagement, we noted a material program missing from the Schedule, which if not included, would have resulted in a material misstatement of the Corporation’s Schedule. A full reconciliation of the various grant accounts was not completed in connection with the preparation of the Schedule. Effect – This control deficiency resulted in us having to assist in the preparation of the Schedule and would have resulted in a material misstatements to the Schedule that was not prevented, or detected and corrected, by internal personnel in a timely manner. Questioned Costs – None reported. Context/Sampling – Sampling was not used Repeat Findings from Prior Years – Yes Recommendation – We recommend that management update procedures and controls over tracking and recording of federal programs within the Schedule, including a reconciliation to the various grant accounts. Views of Responsible Officials – Management agrees with the finding.
Finding 2023-001
2023-001 Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relied Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year – Period 5 and 6 TIN #237293874; #810540517; #371518772; #810413632; #810420653 Department of Health and Human Services All grant awards from pass-through entities Federal Assistance Listing #93.391 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crisis Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance - Other Criteria –A good system of internal accounting control contemplates an adequate system for preparing the consolidated schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition – The Corporation does not have an internal control system designed to provide for a complete and accurate Schedule being prepared for audit. Cause – During the course of our engagement, we noted a material program missing from the Schedule, which if not included, would have resulted in a material misstatement of the Corporation’s Schedule. A full reconciliation of the various grant accounts was not completed in connection with the preparation of the Schedule. Effect – This control deficiency resulted in us having to assist in the preparation of the Schedule and would have resulted in a material misstatements to the Schedule that was not prevented, or detected and corrected, by internal personnel in a timely manner. Questioned Costs – None reported. Context/Sampling – Sampling was not used Repeat Findings from Prior Years – Yes Recommendation – We recommend that management update procedures and controls over tracking and recording of federal programs within the Schedule, including a reconciliation to the various grant accounts. Views of Responsible Officials – Management agrees with the finding.
Finding 2023-001
2023-001 Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relied Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year – Period 5 and 6 TIN #237293874; #810540517; #371518772; #810413632; #810420653 Department of Health and Human Services All grant awards from pass-through entities Federal Assistance Listing #93.391 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crisis Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance - Other Criteria –A good system of internal accounting control contemplates an adequate system for preparing the consolidated schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition – The Corporation does not have an internal control system designed to provide for a complete and accurate Schedule being prepared for audit. Cause – During the course of our engagement, we noted a material program missing from the Schedule, which if not included, would have resulted in a material misstatement of the Corporation’s Schedule. A full reconciliation of the various grant accounts was not completed in connection with the preparation of the Schedule. Effect – This control deficiency resulted in us having to assist in the preparation of the Schedule and would have resulted in a material misstatements to the Schedule that was not prevented, or detected and corrected, by internal personnel in a timely manner. Questioned Costs – None reported. Context/Sampling – Sampling was not used Repeat Findings from Prior Years – Yes Recommendation – We recommend that management update procedures and controls over tracking and recording of federal programs within the Schedule, including a reconciliation to the various grant accounts. Views of Responsible Officials – Management agrees with the finding.
Finding 2023-001
2023-001 Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relied Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year – Period 5 and 6 TIN #237293874; #810540517; #371518772; #810413632; #810420653 Department of Health and Human Services All grant awards from pass-through entities Federal Assistance Listing #93.391 Activities to Support State, Tribal, Local and Territorial (STLT) Health Department Response to Public Health or Healthcare Crisis Preparation of Consolidated Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance - Other Criteria –A good system of internal accounting control contemplates an adequate system for preparing the consolidated schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition – The Corporation does not have an internal control system designed to provide for a complete and accurate Schedule being prepared for audit. Cause – During the course of our engagement, we noted a material program missing from the Schedule, which if not included, would have resulted in a material misstatement of the Corporation’s Schedule. A full reconciliation of the various grant accounts was not completed in connection with the preparation of the Schedule. Effect – This control deficiency resulted in us having to assist in the preparation of the Schedule and would have resulted in a material misstatements to the Schedule that was not prevented, or detected and corrected, by internal personnel in a timely manner. Questioned Costs – None reported. Context/Sampling – Sampling was not used Repeat Findings from Prior Years – Yes Recommendation – We recommend that management update procedures and controls over tracking and recording of federal programs within the Schedule, including a reconciliation to the various grant accounts. Views of Responsible Officials – Management agrees with the finding.