FAC Explorer

Audit 3663

FY End
2022-12-31
Total Expended
$1.21M
Findings
2
Programs
6
Organization: Calhoun Liberty Hospital Association INC (FL)
Year: 2022 Accepted: 2023-11-18
Auditor: Draffin & Tucker LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
2111 2022-003 Material Weakness - ABL
578553 2022-003 Material Weakness - ABL

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $586,120 Yes 1
10.766 Community Facilities Loans and Grants $428,770 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $91,076 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $61,446 - 0
93.461 Covid-19 Testing for the Uninsured $24,829 - 0
93.301 Small Rural Hospital Improvement Grant Program $12,836 - 0

Contacts

Name Title Type
MVVFA4FW3CL4 Christinia Jepsen Auditee
8506745411 Charles Horne Auditor
No contacts on file

Notes to SEFA

Title: Non-Cash Awards Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Calhoun-Liberty Hospital Association, Inc., D/B/A Calhoun-Liberty Hospital, (Hospital) 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 Hospital, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Hospital. Expenditures reported on the Schedule are reported on the accrual basis of accounting which is consistent with the preparation of the Hospital’s financial statements. 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. The Provider Relief Fund (PRF) amount reported on the Schedule represents the amount reported to the U.S. Department of Health and Human Services HRSA Reporting Portal for Period 4 as specified in the OMB Compliance Supplement. The Hospital did not receive any Period 3 PRF payments. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Hospital did not have any non-cash awards during the fiscal year.
Title: Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Calhoun-Liberty Hospital Association, Inc., D/B/A Calhoun-Liberty Hospital, (Hospital) 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 Hospital, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Hospital. Expenditures reported on the Schedule are reported on the accrual basis of accounting which is consistent with the preparation of the Hospital’s financial statements. 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. The Provider Relief Fund (PRF) amount reported on the Schedule represents the amount reported to the U.S. Department of Health and Human Services HRSA Reporting Portal for Period 4 as specified in the OMB Compliance Supplement. The Hospital did not receive any Period 3 PRF payments. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. There were no awards passed through to subrecipients.
Title: 10.766 - Community Facilities Loans and Grants Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Calhoun-Liberty Hospital Association, Inc., D/B/A Calhoun-Liberty Hospital, (Hospital) 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 Hospital, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Hospital. Expenditures reported on the Schedule are reported on the accrual basis of accounting which is consistent with the preparation of the Hospital’s financial statements. 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. The Provider Relief Fund (PRF) amount reported on the Schedule represents the amount reported to the U.S. Department of Health and Human Services HRSA Reporting Portal for Period 4 as specified in the OMB Compliance Supplement. The Hospital did not receive any Period 3 PRF payments. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Federal expenditures under loan programs include any new loans made during the year and loans outstanding at the beginning of the year for which there are continuing compliance requirements. There were no new loans for the year ended December 31, 2022. The balance of the loan outstanding as of December 31, 2022 is $336,855.

Finding Details

Finding 2022-003
Criteria: Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act and are to be used to prevent, prepare for, and respond to coronavirus. Recipients are required to establish and maintain effective internal control over the federal award and to report use of funds to HHS through the Health Resources and Services Administration (HRSA) Reporting Portal. The reporting is to be prepared using accurate financial information and be in accordance with reporting requirements. Condition: The Hospital elected to report Period 4 lost revenues utilizing Option 3, the alternative method of calculating lost revenues attributable to coronavirus. The Hospital’s alternative method did not consider the impact of Medicaid supplemental payments recognized to revenue for 2022 Quarter 1. Cause: The established internal controls did not consider the appropriate grouping of Medicaid supplemental payments when calculating Total Revenue/Net Charges from Patient Care. Effect: The lack of adequate policies governing report preparation and submission increases the risk that the report could be filed incorrectly. Questioned Costs: 2022 Quarter 1 Lost Revenue was overstated by $425,207. However, the Hospital’s Period 4 portal submission reflects $1,988,424 of remaining unused lost revenues that management believes could offset the identified questioned costs. Recommendation: We recommend the Hospital continue to design and implement controls, including levels of review, to ensure reporting is prepared using accurate financial information and in accordance with reporting requirements. Views of Responsible Officials of the Auditee: The Hospital agrees with this finding. See management’s corrective action plan.
Finding 2022-003
Criteria: Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act and are to be used to prevent, prepare for, and respond to coronavirus. Recipients are required to establish and maintain effective internal control over the federal award and to report use of funds to HHS through the Health Resources and Services Administration (HRSA) Reporting Portal. The reporting is to be prepared using accurate financial information and be in accordance with reporting requirements. Condition: The Hospital elected to report Period 4 lost revenues utilizing Option 3, the alternative method of calculating lost revenues attributable to coronavirus. The Hospital’s alternative method did not consider the impact of Medicaid supplemental payments recognized to revenue for 2022 Quarter 1. Cause: The established internal controls did not consider the appropriate grouping of Medicaid supplemental payments when calculating Total Revenue/Net Charges from Patient Care. Effect: The lack of adequate policies governing report preparation and submission increases the risk that the report could be filed incorrectly. Questioned Costs: 2022 Quarter 1 Lost Revenue was overstated by $425,207. However, the Hospital’s Period 4 portal submission reflects $1,988,424 of remaining unused lost revenues that management believes could offset the identified questioned costs. Recommendation: We recommend the Hospital continue to design and implement controls, including levels of review, to ensure reporting is prepared using accurate financial information and in accordance with reporting requirements. Views of Responsible Officials of the Auditee: The Hospital agrees with this finding. See management’s corrective action plan.