FAC Explorer

Audit 36625

FY End
2022-12-31
Total Expended
$905,816
Findings
4
Programs
3
Organization: Bath Community Hospital (VA)
Year: 2022 Accepted: 2023-07-15
Auditor: Brown Edwards & CO LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
34069 2022-001 Significant Deficiency - A
34070 2022-002 Significant Deficiency - A
610511 2022-001 Significant Deficiency - A
610512 2022-002 Significant Deficiency - A

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $536,716 Yes 2
93.697 Covid-19 Testing for Rural Health Clinics $300,000 - 0
93.301 Small Rural Hospital Improvement Grant Program $69,100 - 0

Contacts

Name Title Type
HNK9ZGDW8TZ1 Tom Vandenhoven Auditee
5408397000 Susan Chapman Auditor
No contacts on file

Notes to SEFA

Title: OUTSTANDING LOAN BALANCES Accounting Policies: The accompanying schedule of expenditures of federal awards includes the activity of all federally assisted programs of Bath Community Hospital and is presented on the income tax basis of accounting, as described in Note 1 to the Hospital's basic financial statements. All federal awards received directly from federal agencies, as well as federal awards passed through other government agencies, are included on this schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. At December 31, 2022, the Hospital had no outstanding loan balances requiring continuing disclosure.
Title: PROVIDER RELIEF FUNDS Accounting Policies: The accompanying schedule of expenditures of federal awards includes the activity of all federally assisted programs of Bath Community Hospital and is presented on the income tax basis of accounting, as described in Note 1 to the Hospital's basic financial statements. All federal awards received directly from federal agencies, as well as federal awards passed through other government agencies, are included on this schedule. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The amount reported on the accompanying schedule of expenditures is related to those expenses incurred and claimed under funding received between July 2021 through December 2021. These funds had to be used by December 31, 2022.

Finding Details

Finding 2022-001
2022-01: Controls Over Payroll Action Forms ? Provider Relief Funds ? AL# 93.498 (Significant Deficiency in Controls Over Compliance) Condition: During our review of payroll expenses charged to the program, we noted payroll action forms were either not updated or missing entirely Criteria: Controls must be in place to ensure employee time charged to the program is supported by internal rate forms. Cause: Payroll action forms were out of date or missing and thus did not support the rate charged to the program. Effect: There was no audit trail to support approval of pay rates charged to the program. Questioned Cost Amount: Not applicable. Perspective Information: Four items out of 25 tested. Context: Controls were not implemented to ensure payroll action forms were properly used and reviewed prior to recording employee time to the program. Recommendation: We recommend that payroll action forms or other documentation be maintained to support payroll rates charged to federal programs. Views of Responsible Officials and Planned Corrective Action: Management was receptive of the finding and will continue to have heighted scrutiny when using Federal funds.
Finding 2022-002
2022-02: Controls Over Payroll Review ? Provider Relief Funds ? AL# 93.498 (Significant Deficiency in Controls Over Compliance) Condition: During our review of payroll expenses charged to the program, we noted that there were not adequate controls in place to review timecards prior to charging the payroll expense to the program. Criteria: Controls must be in place to ensure employee time cards are approved to ensure time charged to the program is appropriate. Cause: During the transition between payroll systems, there was a lack of reviews to ensure proper amounts were being charged to the program. Effect: Payroll timecards were not reviewed or approved for the first two payrolls after the transition to the new software. Questioned Cost Amount: Not applicable. Perspective Information: Three items out of 25 tested. Context: The Hospital was transitioning to a new payroll system. During that time, they did not maintain adequate controls. Recommendation: We recommend that all timecards are approved. Additionally, if the payroll processor does not keep such information electronically, we recommend maintaining physical documents as support. Views of Responsible Officials and Planned Corrective Action: Management was receptive of the finding and will continue to have heighted scrutiny when using Federal funds.
Finding 2022-001
2022-01: Controls Over Payroll Action Forms ? Provider Relief Funds ? AL# 93.498 (Significant Deficiency in Controls Over Compliance) Condition: During our review of payroll expenses charged to the program, we noted payroll action forms were either not updated or missing entirely Criteria: Controls must be in place to ensure employee time charged to the program is supported by internal rate forms. Cause: Payroll action forms were out of date or missing and thus did not support the rate charged to the program. Effect: There was no audit trail to support approval of pay rates charged to the program. Questioned Cost Amount: Not applicable. Perspective Information: Four items out of 25 tested. Context: Controls were not implemented to ensure payroll action forms were properly used and reviewed prior to recording employee time to the program. Recommendation: We recommend that payroll action forms or other documentation be maintained to support payroll rates charged to federal programs. Views of Responsible Officials and Planned Corrective Action: Management was receptive of the finding and will continue to have heighted scrutiny when using Federal funds.
Finding 2022-002
2022-02: Controls Over Payroll Review ? Provider Relief Funds ? AL# 93.498 (Significant Deficiency in Controls Over Compliance) Condition: During our review of payroll expenses charged to the program, we noted that there were not adequate controls in place to review timecards prior to charging the payroll expense to the program. Criteria: Controls must be in place to ensure employee time cards are approved to ensure time charged to the program is appropriate. Cause: During the transition between payroll systems, there was a lack of reviews to ensure proper amounts were being charged to the program. Effect: Payroll timecards were not reviewed or approved for the first two payrolls after the transition to the new software. Questioned Cost Amount: Not applicable. Perspective Information: Three items out of 25 tested. Context: The Hospital was transitioning to a new payroll system. During that time, they did not maintain adequate controls. Recommendation: We recommend that all timecards are approved. Additionally, if the payroll processor does not keep such information electronically, we recommend maintaining physical documents as support. Views of Responsible Officials and Planned Corrective Action: Management was receptive of the finding and will continue to have heighted scrutiny when using Federal funds.