Audit 325833

FY End
2022-12-31
Total Expended
$2.76M
Findings
4
Programs
3
Year: 2022 Accepted: 2024-10-24
Auditor: Galindez LLC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
503645 2022-001 Significant Deficiency Yes L
503646 2022-001 Significant Deficiency Yes L
1080087 2022-001 Significant Deficiency Yes L
1080088 2022-001 Significant Deficiency Yes L

Programs

Contacts

Name Title Type
Q1WEJ6M7N2R9 Jose Gratacos Auditee
7876580000 Henry Flores Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: a. The Schedule is prepared from the Hospital’s accounting records and is not intended to present its financial position or the results of its operations. b. The financial transactions are recorded by the Hospital in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. c. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. d. Expenditures are reported on the Schedule following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. e. The Hospital has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: N/A The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Hospital Comunitario Buen Samaritano, Inc. (the Hospital), under programs of the federal government for the year ended December 31, 2022. The information included in the Schedule is prepared in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in or used in the preparation of the financial statements of the Hospital. Because the Schedule presents only a selected portion of the operations of the Hospital, it is not intended to, and does not, present the financial position, results of operations and cash flows of the Hospital. Funds received from the federal programs, as detailed in the Schedule, are included as grants revenue in the statement of operations and changes in net assets (accumulated deficit) for the years ended on December 31, 2022 and 2021 (See Note 5 to the Schedule).
Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: a. The Schedule is prepared from the Hospital’s accounting records and is not intended to present its financial position or the results of its operations. b. The financial transactions are recorded by the Hospital in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. c. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. d. Expenditures are reported on the Schedule following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. e. The Hospital has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: N/A a. The Schedule is prepared from the Hospital’s accounting records and is not intended to present its financial position or the results of its operations. b. The financial transactions are recorded by the Hospital in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. c. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. d. Expenditures are reported on the Schedule following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. e. The Hospital has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Note 3 - Assistance Listing Number (ALN) Accounting Policies: a. The Schedule is prepared from the Hospital’s accounting records and is not intended to present its financial position or the results of its operations. b. The financial transactions are recorded by the Hospital in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. c. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. d. Expenditures are reported on the Schedule following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. e. The Hospital has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: N/A The Assistance Listing Numbers included in the Schedule are determined based on the program name, review of grant contract information and the OMB’s Assistance Listing.
Title: Note 4 - Major Federal Program Accounting Policies: a. The Schedule is prepared from the Hospital’s accounting records and is not intended to present its financial position or the results of its operations. b. The financial transactions are recorded by the Hospital in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. c. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. d. Expenditures are reported on the Schedule following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. e. The Hospital has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: N/A The major federal programs are identified in the Summary of Auditors’ Results Section in the Schedule of Findings and Questioned Costs. The federal programs are presented by federal agency.
Title: Note 5 - Provider Relief Fund Accounting Policies: a. The Schedule is prepared from the Hospital’s accounting records and is not intended to present its financial position or the results of its operations. b. The financial transactions are recorded by the Hospital in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America. c. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. d. Expenditures are reported on the Schedule following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures may or may not be allowable or may be limited as to reimbursement. e. The Hospital has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: N/A During the year ended December 31, 2021, the Hospital received grants under the Provider Relief Fund (PRF) amounting to $1,504,980. Such funds were used by the Hospital for allowable activities under the program requirements during fiscal year 2021, and accordingly, were recorded as revenue during 2021. The PRF is administered by the Health Resources and Services Administration (HRSA) and provides relief funds to hospitals and other healthcare providers involved in the COVID-19 response. The funding supports healthcare related expenses or lost revenue attributable to COVID-19. As provided by the 2022 OMB Compliance Supplement (the 2022 Compliance Supplement), due to delays in the launch of HRSA’s PRF reporting portal, PRF funds received during the year ended December 31, 2021, and expended during the fiscal year ended December 31, 2021 fall within the HRSA reporting period 3, and accordingly, should be included in the Schedule for the fiscal year ended December 31, 2022. As such, the Schedule includes the PRF funds received during the year ended 2021 and reported by the Hospital during the year ended December 31, 2022 for the amount of $1,504,980.

Finding Details

Finding No. 2022-001 – Reporting - Late filing of data collection form and reporting package Federal Programs Assistance Listing Number 10.766 – Community Facilities Loans and Grants Assistance Listing Number 93.498 – COVID -19 Provider Relief Fund Name of Federal Agency U.S. Department of Agriculture U.S. Department of Health and Human Services Category Internal Control/Compliance; Significant Deficiency Criteria 2 CFR 200.512 (a) (1) establishes that the audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditors' report(s), or nine months after the end of the audit period. Condition The Hospital did not submit the required data collection form and reporting package within the required period of September 30, 2023 (9 months after the end of fiscal year). Cause This condition was caused by the fact that the audited financial statements, which are part of the reporting package, were not ready to be released by the required period of September 30, 2023 (9 months after the end of fiscal year). Effect Federal grantors were prevented from being informed on a timely basis of the current audit findings and results. Consequently, any action, further requirements or support from the federal grantor could not be executed on a timely basis or at all. Context No context for this finding since this is a single audit annual reporting requirement to submit the Data Collection Form and the Reporting Package to the Federal Audit Clearinghouse. Identification of a repeat finding Yes. This is an immediate repeat of prior year finding 2021-002. Questioned costs None Recommendation We recommend that the Hospital establish calendars to review the submission of required annual reporting to ensure that all team members are aware of due dates, including filing extensions. These calendars should be regularly updated and shared across relevant departments, promoting accountability and ensuring that tasks are tracked in a timely manner. Additionally, periodic meetings to review progress and address potential delays can help prevent last-minute issues and ensure compliance with regulatory deadlines. Views of responsible officials and planned corrective actions The Hospital’s management agrees with this finding. Please refer to the corrective action plan on pages 47-48.
Finding No. 2022-001 – Reporting - Late filing of data collection form and reporting package Federal Programs Assistance Listing Number 10.766 – Community Facilities Loans and Grants Assistance Listing Number 93.498 – COVID -19 Provider Relief Fund Name of Federal Agency U.S. Department of Agriculture U.S. Department of Health and Human Services Category Internal Control/Compliance; Significant Deficiency Criteria 2 CFR 200.512 (a) (1) establishes that the audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditors' report(s), or nine months after the end of the audit period. Condition The Hospital did not submit the required data collection form and reporting package within the required period of September 30, 2023 (9 months after the end of fiscal year). Cause This condition was caused by the fact that the audited financial statements, which are part of the reporting package, were not ready to be released by the required period of September 30, 2023 (9 months after the end of fiscal year). Effect Federal grantors were prevented from being informed on a timely basis of the current audit findings and results. Consequently, any action, further requirements or support from the federal grantor could not be executed on a timely basis or at all. Context No context for this finding since this is a single audit annual reporting requirement to submit the Data Collection Form and the Reporting Package to the Federal Audit Clearinghouse. Identification of a repeat finding Yes. This is an immediate repeat of prior year finding 2021-002. Questioned costs None Recommendation We recommend that the Hospital establish calendars to review the submission of required annual reporting to ensure that all team members are aware of due dates, including filing extensions. These calendars should be regularly updated and shared across relevant departments, promoting accountability and ensuring that tasks are tracked in a timely manner. Additionally, periodic meetings to review progress and address potential delays can help prevent last-minute issues and ensure compliance with regulatory deadlines. Views of responsible officials and planned corrective actions The Hospital’s management agrees with this finding. Please refer to the corrective action plan on pages 47-48.
Finding No. 2022-001 – Reporting - Late filing of data collection form and reporting package Federal Programs Assistance Listing Number 10.766 – Community Facilities Loans and Grants Assistance Listing Number 93.498 – COVID -19 Provider Relief Fund Name of Federal Agency U.S. Department of Agriculture U.S. Department of Health and Human Services Category Internal Control/Compliance; Significant Deficiency Criteria 2 CFR 200.512 (a) (1) establishes that the audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditors' report(s), or nine months after the end of the audit period. Condition The Hospital did not submit the required data collection form and reporting package within the required period of September 30, 2023 (9 months after the end of fiscal year). Cause This condition was caused by the fact that the audited financial statements, which are part of the reporting package, were not ready to be released by the required period of September 30, 2023 (9 months after the end of fiscal year). Effect Federal grantors were prevented from being informed on a timely basis of the current audit findings and results. Consequently, any action, further requirements or support from the federal grantor could not be executed on a timely basis or at all. Context No context for this finding since this is a single audit annual reporting requirement to submit the Data Collection Form and the Reporting Package to the Federal Audit Clearinghouse. Identification of a repeat finding Yes. This is an immediate repeat of prior year finding 2021-002. Questioned costs None Recommendation We recommend that the Hospital establish calendars to review the submission of required annual reporting to ensure that all team members are aware of due dates, including filing extensions. These calendars should be regularly updated and shared across relevant departments, promoting accountability and ensuring that tasks are tracked in a timely manner. Additionally, periodic meetings to review progress and address potential delays can help prevent last-minute issues and ensure compliance with regulatory deadlines. Views of responsible officials and planned corrective actions The Hospital’s management agrees with this finding. Please refer to the corrective action plan on pages 47-48.
Finding No. 2022-001 – Reporting - Late filing of data collection form and reporting package Federal Programs Assistance Listing Number 10.766 – Community Facilities Loans and Grants Assistance Listing Number 93.498 – COVID -19 Provider Relief Fund Name of Federal Agency U.S. Department of Agriculture U.S. Department of Health and Human Services Category Internal Control/Compliance; Significant Deficiency Criteria 2 CFR 200.512 (a) (1) establishes that the audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditors' report(s), or nine months after the end of the audit period. Condition The Hospital did not submit the required data collection form and reporting package within the required period of September 30, 2023 (9 months after the end of fiscal year). Cause This condition was caused by the fact that the audited financial statements, which are part of the reporting package, were not ready to be released by the required period of September 30, 2023 (9 months after the end of fiscal year). Effect Federal grantors were prevented from being informed on a timely basis of the current audit findings and results. Consequently, any action, further requirements or support from the federal grantor could not be executed on a timely basis or at all. Context No context for this finding since this is a single audit annual reporting requirement to submit the Data Collection Form and the Reporting Package to the Federal Audit Clearinghouse. Identification of a repeat finding Yes. This is an immediate repeat of prior year finding 2021-002. Questioned costs None Recommendation We recommend that the Hospital establish calendars to review the submission of required annual reporting to ensure that all team members are aware of due dates, including filing extensions. These calendars should be regularly updated and shared across relevant departments, promoting accountability and ensuring that tasks are tracked in a timely manner. Additionally, periodic meetings to review progress and address potential delays can help prevent last-minute issues and ensure compliance with regulatory deadlines. Views of responsible officials and planned corrective actions The Hospital’s management agrees with this finding. Please refer to the corrective action plan on pages 47-48.