FAC Explorer

Audit 329422

FY End
2023-06-30
Total Expended
$23.81M
Findings
2
Programs
4
Organization: Butler Health System and Subsidiaries (PA)
Year: 2023 Accepted: 2024-11-22
Auditor: Forvis Mazars LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
509760 2023-004 Significant Deficiency Yes L
1086202 2023-004 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $16.15M Yes 1
10.766 Community Facilities Loans and Grants $1.00M - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $453,948 Yes 0
93.461 Covid-19 Testing for the Uninsured $-2,619 - 0

Contacts

Name Title Type
ZW74JL369923 Allison Lutz Auditee
7248324016 Ryan O'Grady 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 or other applicable regulatory 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. De Minimis Rate Used: N Rate Explanation: Butler Health System and Subsidiaries has elected not to use the 10 percent 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 Butler Health System and Subsidiaries under programs of the federal government for the year ended June 30, 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 Butler Health System and Subsidiaries, it is not intended to and does not present the consolidated financial position, results of operations, changes in net assets, or cash flows of Butler Health System and Subsidiaries.
Title: Federal Loan Programs 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 or other applicable regulatory 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. De Minimis Rate Used: N Rate Explanation: Butler Health System and Subsidiaries has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Butler Health System and Subsidiaries did not have any federal loan programs during the year ended June 30, 2023.
Title: Personal Protective Equipment (PPE) (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 or other applicable regulatory 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. De Minimis Rate Used: N Rate Explanation: Butler Health System and Subsidiaries has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Butler Health System and Subsidiaries did not receive any federally donated Personal Protective Equipment (PPE) during the year ended June 30, 2023.

Finding Details

Finding 2023-004
COVID-19 Provider Relief Fund and American Rescue (ARP) Rural Distribution CFDA No. 93.498 U.S. Department of Health and Human Services Criteria or specific requirement – Reporting (45 CFR 75.342) Condition – The System is required to prepare and submit period 4 and period 5 provider relief fund reporting. This report is to be prepared using accurate financial information and submitted by the deadline established. Questioned Costs – None Context – Errors were made in the System’s Option iii Lost Revenues reported in periods 4 and 5. Specifically, certain Lost Revenues experienced during the period of availability were not reported; however, when these errors are considered, the System’s available Lost Revenue increased from what was originally reported in periods 4 and 5. Effect – Errors were identified in the System’s Option iii quarterly Lost Revenue totals reported to HHS; however, when these errors are considered, the System’s total Provider Relief Fund payments applied to lost revenues did not change from what was originally reported in periods 4 or 5. Cause – The System’s internal controls did not properly identify certain reporting requirements for the Provider Relief Fund and American Rescue (ARP) Rural Distributions. Identification of a repeat finding – Is a repeat finding. See 2022-004 in Summary of Prior Audit Findings. Recommendation – Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information.
Finding 2023-004
COVID-19 Provider Relief Fund and American Rescue (ARP) Rural Distribution CFDA No. 93.498 U.S. Department of Health and Human Services Criteria or specific requirement – Reporting (45 CFR 75.342) Condition – The System is required to prepare and submit period 4 and period 5 provider relief fund reporting. This report is to be prepared using accurate financial information and submitted by the deadline established. Questioned Costs – None Context – Errors were made in the System’s Option iii Lost Revenues reported in periods 4 and 5. Specifically, certain Lost Revenues experienced during the period of availability were not reported; however, when these errors are considered, the System’s available Lost Revenue increased from what was originally reported in periods 4 and 5. Effect – Errors were identified in the System’s Option iii quarterly Lost Revenue totals reported to HHS; however, when these errors are considered, the System’s total Provider Relief Fund payments applied to lost revenues did not change from what was originally reported in periods 4 or 5. Cause – The System’s internal controls did not properly identify certain reporting requirements for the Provider Relief Fund and American Rescue (ARP) Rural Distributions. Identification of a repeat finding – Is a repeat finding. See 2022-004 in Summary of Prior Audit Findings. Recommendation – Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information.