Audit 333892

FY End

2023-06-30

Total Expended

$3.07M

Findings

2

Programs

2

Organization: Chesapeake Hospital Authority (VA)

Year: 2023 Accepted: 2024-12-19

Auditor: Bdo USA PC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
516078	2023-001	Significant Deficiency	Yes	L
1092520	2023-001	Significant Deficiency	Yes	L

ALN	Program	Spent	Major	Findings
93.498	Provider Relief Fund and American Rescue Plan (arp) Rural Distribution	$2.95M	Yes	1
16.575	Crime Victim Assistance	$120,299	-	0

Contacts

Name	Title	Type
GMFLJZLNKK34	Stephen McDonnell	Auditee
7573123138	Andrea Spetrini	Auditor
No contacts on file

Notes to SEFA

Title: Note 1. 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. The Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Program (PRF Program) amount on the Schedule includes $877,537 for reimbursement of lost revenue and $1,743,907 of out-of-period expenditures which are recognized in CARES Act stimulus funds in the Statements of Revenues, Expenses, and Changes in Net Position in prior periods. These amounts are reported in the Schedule in accordance with the terms and conditions included in the U.S. Department of Health and Human Services (HHS) Post-Payment Notice of Reporting Requirements specific to the PRF program. De Minimis Rate Used: Y Rate Explanation: The Authority elected to use the 10percent 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 Chesapeake Hospital Authority (the Authority) 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 the Authority, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Authority.

Title: Note 4. 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. The Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Program (PRF Program) amount on the Schedule includes $877,537 for reimbursement of lost revenue and $1,743,907 of out-of-period expenditures which are recognized in CARES Act stimulus funds in the Statements of Revenues, Expenses, and Changes in Net Position in prior periods. These amounts are reported in the Schedule in accordance with the terms and conditions included in the U.S. Department of Health and Human Services (HHS) Post-Payment Notice of Reporting Requirements specific to the PRF program. De Minimis Rate Used: Y Rate Explanation: The Authority elected to use the 10percent de minimis indirect cost rate allowed under the Uniform Guidance. During the year ended June 30, 2023, the Authority did not receive any donations of personal protective equipment from federal agencies and recipients of federal assistance funds.

Title: 5. Entities included in the Schedule 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. The Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Program (PRF Program) amount on the Schedule includes $877,537 for reimbursement of lost revenue and $1,743,907 of out-of-period expenditures which are recognized in CARES Act stimulus funds in the Statements of Revenues, Expenses, and Changes in Net Position in prior periods. These amounts are reported in the Schedule in accordance with the terms and conditions included in the U.S. Department of Health and Human Services (HHS) Post-Payment Notice of Reporting Requirements specific to the PRF program. De Minimis Rate Used: Y Rate Explanation: The Authority elected to use the 10percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying Schedule includes the following entities as identified by individual tax identification number (TIN) and entity name: TIN Entity Name 23-7133975 Chesapeake General Hospital DBA CRMC 54-2010320 Surgery Center of Chesapeake, LLC 26-2366542 Chesapeake Regional Medical Group 20-5039854 Chesapeake Neuroinstitute, LLC 63-1242196 Chesapeake Diagnostic Imaging Center, LLC 54-1513749 First Meridian Medical, LLC 54-2003078 Positron Emission Tomography of Hampton Roads

Finding Details

Finding 2023-001

Identification of the Federal Program: 93.498 COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Program Criteria: In accordance with 2 CFR Section 200.512(a), the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period, adjusted for any extensions permitted by the Office of Management and Budget. Condition: The reporting package and data collection form for the year ended June 30, 2023, were not filed by the deadline of March 31, 2024, to the Federal Audit Clearinghouse. Cause: Although the schedule and notes thereto were prepared accurately and timely, additional time was required to comply fully with reporting on, and audit of, compliance requirements of the federal award programs. Effect: The reporting package and data collection form for the year ended June 30, 2023, were not submitted to the Federal Audit Clearinghouse in a timely manner. Questioned Costs: None. Context: The reporting package and data collection form for the year ended June 30, 2023, were submitted to the Federal Audit Clearinghouse after the due date of March 31, 2024. Repeat Finding: Yes. Recommendation: We recommend the Authority continue to refine policies, procedures and internal controls, including tracking and monitoring of reporting requirements, to ensure that the audit, reporting package, and data collection form are electronically filed with the Federal Audit Clearinghouse within the applicable deadline. View of Responsible Officials: The Authority’s management agrees with the federal award finding identified in the audit. Management’s response to this finding is described in the accompanying management’s corrective action plan.

Finding 2023-001

Identification of the Federal Program: 93.498 COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Program Criteria: In accordance with 2 CFR Section 200.512(a), the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period, adjusted for any extensions permitted by the Office of Management and Budget. Condition: The reporting package and data collection form for the year ended June 30, 2023, were not filed by the deadline of March 31, 2024, to the Federal Audit Clearinghouse. Cause: Although the schedule and notes thereto were prepared accurately and timely, additional time was required to comply fully with reporting on, and audit of, compliance requirements of the federal award programs. Effect: The reporting package and data collection form for the year ended June 30, 2023, were not submitted to the Federal Audit Clearinghouse in a timely manner. Questioned Costs: None. Context: The reporting package and data collection form for the year ended June 30, 2023, were submitted to the Federal Audit Clearinghouse after the due date of March 31, 2024. Repeat Finding: Yes. Recommendation: We recommend the Authority continue to refine policies, procedures and internal controls, including tracking and monitoring of reporting requirements, to ensure that the audit, reporting package, and data collection form are electronically filed with the Federal Audit Clearinghouse within the applicable deadline. View of Responsible Officials: The Authority’s management agrees with the federal award finding identified in the audit. Management’s response to this finding is described in the accompanying management’s corrective action plan.