Audit 324527

FY End
2023-03-31
Total Expended
$3.38M
Findings
2
Programs
1
Organization: Cuyuna Regional Medical Center (MN)
Year: 2023 Accepted: 2024-10-11
Auditor: Rsm US LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
502532 2023-002 - - L
1078974 2023-002 - - L

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $3.38M Yes 1

Contacts

Name Title Type
VAGWUFXXQ2F6 Katie Berg Auditee
2185464366 Jeremy Zabel Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures 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. De Minimis Rate Used: N Rate Explanation: The Center did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Cuyuna Regional Medical Center and its subsidiaries (the Center) under programs of the federal government for the year ended March 31, 2023. 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 the Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Center.
Title: Provider Relief Fund Accounting Policies: Expenditures 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. De Minimis Rate Used: N Rate Explanation: The Center did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Under the terms and conditions of the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution program (PRF) (ALN 93.498), the Center is required to report COVID-19 related expenses and lost revenue to the U.S. Department of Health and Human Services (HHS). Guidance from HHS has required the reporting of the COVID-19 related expenses and lost revenue in certain reporting periods based on when the funds were received. The March 31, 2023 Schedule includes PRF expenditures of $3,384,606. Distributions of $3,384,606 were received by the Center from January 1, 2021 to December 31, 2021. The Center recognized $3,323,463 and $61,143 as revenue in its March 31, 2022 and 2021 consolidated financial statements, respectively, as the terms and conditions of the PRF grant were satisfied. HHS requires the $3,384,606 be reported on the March 31, 2023 Schedule.
Title: Fair Market Value of Donated Personal Protective Equipment (Unaudited) Accounting Policies: Expenditures 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. De Minimis Rate Used: N Rate Explanation: The Center did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. During the year ended March 31, 2023, the Center did not receive significant donated personal protective equipment from federal sources.
Title: Significant Accounting Policies Accounting Policies: Expenditures 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. De Minimis Rate Used: N Rate Explanation: The Center did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures 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.
Title: Indirect cost rate Accounting Policies: Expenditures 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. De Minimis Rate Used: N Rate Explanation: The Center did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Center did not elect to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Item 2023-002: Late Issuance of 2023 Single Audit Reporting Package Identification of federal programs: U.S. Department of Health and Human Services, Assistance Listing Number 93.498. Pass-through Entity is N/A. Federal Assistance ID is N/A. Federal Award year is March 31, 2023. Type of Finding: Other Matter Compliance Finding Criteria: OMB’s Uniform Guidance, Title 2, Part 200, Subpart F Audit Requirements, paragraph .512 requires the single audit to be completed and the data collection form and reporting package to be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition: The 2023 single audit reporting package was required to be submitted by December 31, 2023. Cause: The audit was not completed as of December 31, 2023, due to information not being available to complete the audit. Effect: The Center was not in compliance with the Uniform Guidance (2 CFR 200.512). Known and likely questioned costs: None. Prevalence: The March 31, 2023 Single Audit reporting package is the only one not timely filed. Repeat finding: No. Recommendation: We recommend the Center continue its efforts to ensure the reporting package is filed timely with the Federal Clearinghouse. Views of responsible officials: The Center concurs with the finding and a response is included in the corrective action plan.
Item 2023-002: Late Issuance of 2023 Single Audit Reporting Package Identification of federal programs: U.S. Department of Health and Human Services, Assistance Listing Number 93.498. Pass-through Entity is N/A. Federal Assistance ID is N/A. Federal Award year is March 31, 2023. Type of Finding: Other Matter Compliance Finding Criteria: OMB’s Uniform Guidance, Title 2, Part 200, Subpart F Audit Requirements, paragraph .512 requires the single audit to be completed and the data collection form and reporting package to be submitted within the earlier of 30 calendar days after receipt of the auditor’s report(s), or nine months after the end of the audit period. Condition: The 2023 single audit reporting package was required to be submitted by December 31, 2023. Cause: The audit was not completed as of December 31, 2023, due to information not being available to complete the audit. Effect: The Center was not in compliance with the Uniform Guidance (2 CFR 200.512). Known and likely questioned costs: None. Prevalence: The March 31, 2023 Single Audit reporting package is the only one not timely filed. Repeat finding: No. Recommendation: We recommend the Center continue its efforts to ensure the reporting package is filed timely with the Federal Clearinghouse. Views of responsible officials: The Center concurs with the finding and a response is included in the corrective action plan.