FAC Explorer

Audit 348302

FY End
2021-06-30
Total Expended
$6.84M
Findings
2
Programs
2
Organization: Huntsville Memorial Hospital (TX)
Year: 2021 Accepted: 2025-03-25
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
530197 2021-001 Significant Deficiency - AB
1106639 2021-001 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $6.74M Yes 1
93.697 Covid-19 Testing and Mitigation for Rural Health Clinics $98,923 - 0

Contacts

Name Title Type
C5MYY3BF28D6 Paul Hanson Auditee
9362914514 Greg Thelen Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Huntsville Community Hospital, Inc.’s and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the applicable 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 of expenditures of federal awards presents only a selected portion of the operations of Huntsville Community Hospital, Inc., it is not intended to and does not present the financial position, changes in net position, or cash flows of Huntsville Community Hospital, Inc. De Minimis Rate Used: Y Rate Explanation: Huntsville Community Hospital, Inc. has elected to use the 10% de minimis indirect cost rate allowable under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Huntsville Community Hospital, Inc.’s and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the applicable 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 of expenditures of federal awards presents only a selected portion of the operations of Huntsville Community Hospital, Inc., it is not intended to and does not present the financial position, changes in net position, or cash flows of Huntsville Community Hospital, Inc.
Title: NOTE 2 Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Huntsville Community Hospital, Inc.’s and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the applicable 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 of expenditures of federal awards presents only a selected portion of the operations of Huntsville Community Hospital, Inc., it is not intended to and does not present the financial position, changes in net position, or cash flows of Huntsville Community Hospital, Inc. De Minimis Rate Used: Y Rate Explanation: Huntsville Community Hospital, Inc. has elected to use the 10% de minimis indirect cost rate allowable under the Uniform Guidance. No funds were identified as having been provided to subrecipients by Huntsville Community Hospital, Inc. and accordingly, no funds identified in the Schedule of Expenditures of Federal Awards are attributable to subrecipient entities. There were no federal awards expended for noncash assistance or insurance. Huntsville Community Hospital, Inc. has elected to use the 10% de minimis indirect cost rate allowable under the Uniform Guidance.
Title: NOTE 3 Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Huntsville Community Hospital, Inc.’s and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the applicable 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 of expenditures of federal awards presents only a selected portion of the operations of Huntsville Community Hospital, Inc., it is not intended to and does not present the financial position, changes in net position, or cash flows of Huntsville Community Hospital, Inc. De Minimis Rate Used: Y Rate Explanation: Huntsville Community Hospital, Inc. has elected to use the 10% de minimis indirect cost rate allowable under the Uniform Guidance. The financial statements reflect revenue recognized from the Provider Relief Fund of approximately $2,596,000 and $4,289,000 for the years ended June 30, 2021 and June 30, 2020. The SEFA includes Provider Relief Funds of approximately $6,742,000 that were received in Period 1 in accordance with the requirements of the compliance supplement for assistance listing number 93.498.

Finding Details

Finding 2021-001
2021-001 Allowable Costs Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Provider Relief Fund AL Number: 93.498 Award Period: April 1, 2020 – June 30, 2020 (Period 1) Type of Finding: Significant deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: Provider Relief Fund cannot be used to cover unsupported or inaccurate expenditures. Condition and Context: During our testing we noted 6 instances in which the supporting invoice for a contract labor expense was not able to be identified. Cause: There was a change in accounting systems subsequent to the period under audit, and the previous system was not digitized. With the change in the system, previous paper invoices were unable to be obtained. Effect: Potential to receive excess reimbursement from the Provider Relief Fund. Questioned Costs: $9,964 Repeat finding: No Recommendation: We recommend that management implement a system that allows for easy identification of any copies of invoices paid. Management’s Response: Management has since updated their accounting system which is now digitized and allows for them to obtain any invoices that have been paid by the Hospital. However, it is noted there was sufficient lost revenue to support the PRF distributions received in the period under audit even with the questioned costs considered.
Finding 2021-001
2021-001 Allowable Costs Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Provider Relief Fund AL Number: 93.498 Award Period: April 1, 2020 – June 30, 2020 (Period 1) Type of Finding: Significant deficiency in Internal Control over Compliance and Other Matters Criteria or specific requirement: Provider Relief Fund cannot be used to cover unsupported or inaccurate expenditures. Condition and Context: During our testing we noted 6 instances in which the supporting invoice for a contract labor expense was not able to be identified. Cause: There was a change in accounting systems subsequent to the period under audit, and the previous system was not digitized. With the change in the system, previous paper invoices were unable to be obtained. Effect: Potential to receive excess reimbursement from the Provider Relief Fund. Questioned Costs: $9,964 Repeat finding: No Recommendation: We recommend that management implement a system that allows for easy identification of any copies of invoices paid. Management’s Response: Management has since updated their accounting system which is now digitized and allows for them to obtain any invoices that have been paid by the Hospital. However, it is noted there was sufficient lost revenue to support the PRF distributions received in the period under audit even with the questioned costs considered.