Audit 343900

FY End
2024-05-31
Total Expended
$3.95M
Findings
2
Programs
2
Organization: Owensboro Health, Inc. (KY)
Year: 2024 Accepted: 2025-02-26
Auditor: Kpmg LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
524530 2024-001 Significant Deficiency - F
1100972 2024-001 Significant Deficiency - F

Contacts

Name Title Type
LA1GP45KRC79 Russ Ranallo Auditee
2706857180 Jennifer Turk Dilibero Auditor
No contacts on file

Notes to SEFA

Title: Summary of Significant Accounting Policies Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) is presented using the accrual basis of accounting and summarizes the expenditures of Owensboro Health, Inc. and affiliated entities (the System) under programs of the federal government for the year ended May 31, 2024. Because the Schedule presents only a selected portion of the operations of the System, it is not intended to, and does not, present the financial position, results of operations, changes in net assets, and cash flows of the System. For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between the System, the agencies and departments of the federal government, and all subawards to the System by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. The information in the Schedule is presented in accordance with the provisions of the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The System has not elected to use the 10% de minimis indirect cost rate as permitted under the UniformGuidance, Section 200.414. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) is presented using the accrual basis of accounting and summarizes the expenditures of Owensboro Health, Inc. and affiliated entities (the System) under programs of the federal government for the year ended May 31, 2024. Because the Schedule presents only a selected portion of the operations of the System, it is not intended to, and does not, present the financial position, results of operations, changes in net assets, and cash flows of the System. For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between the System, the agencies and departments of the federal government, and all subawards to the System by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. The information in the Schedule is presented in accordance with the provisions of the Uniform Guidance. The System has not elected to use the 10% de minimis indirect cost rate as permitted under the Uniform Guidance, Section 200.414.
Title: Provider Relief Fund Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) is presented using the accrual basis of accounting and summarizes the expenditures of Owensboro Health, Inc. and affiliated entities (the System) under programs of the federal government for the year ended May 31, 2024. Because the Schedule presents only a selected portion of the operations of the System, it is not intended to, and does not, present the financial position, results of operations, changes in net assets, and cash flows of the System. For purposes of the Schedule, federal awards include all grants, contracts, and similar agreements entered into directly between the System, the agencies and departments of the federal government, and all subawards to the System by nonfederal organizations pursuant to federal grants, contracts, and similar agreements. The information in the Schedule is presented in accordance with the provisions of the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The System has not elected to use the 10% de minimis indirect cost rate as permitted under the UniformGuidance, Section 200.414. As required by the granting agency, the Provider Relief Fund (PRF) amounts presented in the Schedule represent lost revenues and expenses as reported to the U.S. Department of Health and Human Services for the PRF Portal Reporting Time Periods of July 1, 2023 to September 30, 2023 and January 1, 2024 to March 31, 2024.

Finding Details

Finding 2024-001 – Equipment and Real Property Federal Program: Coal Miners Respiratory Impairment Treatment Clinics and Services ALN: 93.965 Federal Agency: U.S. Department of Health and Human Services Federal Award Years: July 1, 2023 through June 30, 2024 Criteria: 2 CFR section 200.313(d)(2) requires a physical inventory of federal property to be taken and the results to be reconciled with the property records at least once every two years. Condition Found, Including Perspective: The System did not conduct a physical inventory of the property purchased with federal funds and reconcile the inventory with the property records in 2024 nor in 2023. Therefore, the System was not in compliance with the applicable federal requirements. Possible Cause and Effect: The System lacks a formalized process to verify the condition and existence of federally funded purchased equipment and the System lacks a formalized process to reconcile these amounts back to the property records. Questioned Costs: None. Statistical Validity: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding in the Prior Year: This is not a repeat finding. Recommendation We recommend that management strengthen procedures around performing a physical inventory of the property and reconciling the results at least once every two years. Views of Responsible Officials: Owensboro Health, Inc. concurs with this finding and is working to put procedures in place to perform a formalized physical inventory and a reconciliation of the results on at least a biannual basis.
Finding 2024-001 – Equipment and Real Property Federal Program: Coal Miners Respiratory Impairment Treatment Clinics and Services ALN: 93.965 Federal Agency: U.S. Department of Health and Human Services Federal Award Years: July 1, 2023 through June 30, 2024 Criteria: 2 CFR section 200.313(d)(2) requires a physical inventory of federal property to be taken and the results to be reconciled with the property records at least once every two years. Condition Found, Including Perspective: The System did not conduct a physical inventory of the property purchased with federal funds and reconcile the inventory with the property records in 2024 nor in 2023. Therefore, the System was not in compliance with the applicable federal requirements. Possible Cause and Effect: The System lacks a formalized process to verify the condition and existence of federally funded purchased equipment and the System lacks a formalized process to reconcile these amounts back to the property records. Questioned Costs: None. Statistical Validity: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding in the Prior Year: This is not a repeat finding. Recommendation We recommend that management strengthen procedures around performing a physical inventory of the property and reconciling the results at least once every two years. Views of Responsible Officials: Owensboro Health, Inc. concurs with this finding and is working to put procedures in place to perform a formalized physical inventory and a reconciliation of the results on at least a biannual basis.