Audit 35635

FY End
2022-12-31
Total Expended
$3.32M
Findings
2
Programs
5
Year: 2022 Accepted: 2023-09-26
Auditor: Fustcharles LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
30890 2022-001 Significant Deficiency - L
607332 2022-001 Significant Deficiency - L

Contacts

Name Title Type
FSSFBNJTLDH3 Jeff Hellinger Auditee
3153765597 Eric Fehrman 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The System has elected not to use the 10% 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 the System under programs of the federal government for the year ended December 31, 2022. 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 System, it is not intended to and does not present the financial position, changes in financial position or cash flows of the System.
Title: Subrecipients 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. De Minimis Rate Used: N Rate Explanation: The System has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The System provided no federal awards to subrecipients for the year ended December 31, 2022.
Title: Provider Relief Fund 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. De Minimis Rate Used: N Rate Explanation: The System has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The System received amounts from DHHS through the Provider Relief Fund and American Rescue Plan (ARP) Rural Distributions program (Federal Financial Assistance Listing No. 93.498) during the year ended December 31, 2021 totaling $2,006,950. The System incurred eligible expenses (including lost revenue) and, therefore, recognized revenue totaling $2,006,950 for the year ended December 31, 2021 on the financial statements. In accordance with the 2022 compliance supplement, the programs expenditures recognized on the schedule are based on the reporting to DHHS for Periods 3 and 4, defined as payments received during January 1, 2021 to December 31, 2021 of $2,006,950, as required under the program.

Finding Details

U.S. Department of Health and Human Services: COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (Federal Assistance Listing Number 93.498) 2022-001 - Lost Revenue Reporting Criteria: Recipients of Provider Relief Funds (PRF) and American Rescue Plan (ARP) Rural Distribution payments must comply with the reporting requirements described in the PRF terms and conditions and specified in directions issued by DHHS. Condition: The System?s reporting of 2022 lost revenue in the Period 4 Provider Relief Fund report was based on actual revenues for 2022 that did not agree to the audited financial statements. Questioned Costs: None Context: This finding appears to be an isolated instance. Effect: 2022 lost revenue was not accurately reported in the Period 4 Provider Relief Fund report however did not have an effect on the Provider Relief Funds the System retained. Cause: A clerical error occurred within the System?s internal 2022 lost revenue calculation. Recommendation: We recommend the System update the 2022 lost revenue amounts in future HRSA PRF reporting periods and implement policies and procedures to review Provider Relief Fund reports for accuracy prior to submission. Views of Responsible Official: See management?s Corrective Action Plan on page 60.
U.S. Department of Health and Human Services: COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (Federal Assistance Listing Number 93.498) 2022-001 - Lost Revenue Reporting Criteria: Recipients of Provider Relief Funds (PRF) and American Rescue Plan (ARP) Rural Distribution payments must comply with the reporting requirements described in the PRF terms and conditions and specified in directions issued by DHHS. Condition: The System?s reporting of 2022 lost revenue in the Period 4 Provider Relief Fund report was based on actual revenues for 2022 that did not agree to the audited financial statements. Questioned Costs: None Context: This finding appears to be an isolated instance. Effect: 2022 lost revenue was not accurately reported in the Period 4 Provider Relief Fund report however did not have an effect on the Provider Relief Funds the System retained. Cause: A clerical error occurred within the System?s internal 2022 lost revenue calculation. Recommendation: We recommend the System update the 2022 lost revenue amounts in future HRSA PRF reporting periods and implement policies and procedures to review Provider Relief Fund reports for accuracy prior to submission. Views of Responsible Official: See management?s Corrective Action Plan on page 60.