FAC Explorer

Audit 34640

FY End
2022-06-30
Total Expended
$1.30M
Findings
2
Programs
7
Organization: South Arkansas Regional Health Center, Inc. (AR)
Year: 2022 Accepted: 2022-10-24
Auditor: Thomas & Thomas CPAS PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
38755 2022-002 Material Weakness - C
615197 2022-002 Material Weakness - C

Programs

ALN Program Spent Major Findings
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $872,037 Yes 1
94.002 Retired and Senior Volunteer Program $94,508 - 0
93.958 Block Grants for Community Mental Health Services $33,333 - 0
93.048 Special Programs for the Aging_title Iv_and Title Ii_discretionary Projects $5,000 - 0
10.558 Child and Adult Care Food Program $2,693 - 0
93.575 Child Care and Development Block Grant $2,500 - 0
93.667 Social Services Block Grant $1,488 - 0

Contacts

Name Title Type
WQU5PA3JMBD5 Regina Pierce Auditee
8708627921 Tim Holt Auditor
No contacts on file

Notes to SEFA

Title: Medicare and Medicaid Funds Accounting Policies: The Schedule of Expenditures of Federal Awards is prepared on the accrual basis of accounting. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. In 2022, the Center received Medicare funds of $193,815 and Medicaid funds of $1,577,843 under fee for service contracts, which are not deemed federal awards as they are direct federal assistance to individuals.

Finding Details

Finding 2022-002
Identification of Federal Program Certified Community Behavioral Health Clinic (CCBHC) Expansion Grant, AL #93.829 Criteria or specific requirement (including statutory, regulatory, or other citation) Cash Management: 48 CFR Section 52.216-7 provides requirements for cost reimbursement contracts. Condition In testing compliance with cash management related to the CCBHC program, we noted instances where the Center requested reimbursement for expenses in error. Cause The errors were due to unsatisfactory internal controls in monitoring the monthly reconciliations of total expenses within the general ledger to the amounts requested for reimbursements. Effect of Potential Effect Prior to the adjustments made as part of the audit process, the Center had recognized CCBHC program revenues in excess of expenses. Questioned Cost None Context The Center requested reimbursements through the CCBHC contract in error which resulted in reimbursements exceeding the expenses incurred by approximately $118,000 as of June 30, 2022. Recommendation In order to monitor the status of the CCBHC contract revenues and expenses we recommend that the Center reconcile the general ledger accounts for CCBHC expenses to the requests for reimbursements on a monthly basis. This will help prevent errors in reimbursement requests and will simplify future reconciliations.
Finding 2022-002
Identification of Federal Program Certified Community Behavioral Health Clinic (CCBHC) Expansion Grant, AL #93.829 Criteria or specific requirement (including statutory, regulatory, or other citation) Cash Management: 48 CFR Section 52.216-7 provides requirements for cost reimbursement contracts. Condition In testing compliance with cash management related to the CCBHC program, we noted instances where the Center requested reimbursement for expenses in error. Cause The errors were due to unsatisfactory internal controls in monitoring the monthly reconciliations of total expenses within the general ledger to the amounts requested for reimbursements. Effect of Potential Effect Prior to the adjustments made as part of the audit process, the Center had recognized CCBHC program revenues in excess of expenses. Questioned Cost None Context The Center requested reimbursements through the CCBHC contract in error which resulted in reimbursements exceeding the expenses incurred by approximately $118,000 as of June 30, 2022. Recommendation In order to monitor the status of the CCBHC contract revenues and expenses we recommend that the Center reconcile the general ledger accounts for CCBHC expenses to the requests for reimbursements on a monthly basis. This will help prevent errors in reimbursement requests and will simplify future reconciliations.