FAC Explorer

Audit 387400

FY End
2023-07-31
Total Expended
$34.55M
Findings
1
Programs
2
Organization: Coryell County Memorial Hospital Authority (TX)
Year: 2023 Accepted: 2026-02-16
Auditor: D & CO LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1173693 2023-001 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $30.41M Yes 0
93.498 PROVIDER RELIEF FUND AND AMERICAN RESCUE PLAN (ARP) RURAL DISTRIBUTION $4.15M Yes 1

Contacts

Name Title Type
JUTLK4YTB2K5 Kneeley D. Lawdermilk Auditee
2542486276 Thomas V Klement Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the “SEFA”) includes the federal award activity of Coryell County Memorial Hospital Authority, d.b.a Coryell Health (the “System”), under programs of the federal government for the year ended July 31, 2023. The information in the SEFA 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 SEFA presents only a selected portion of the operations of the System, it is not intended to and does not present the financial position, revenues, expenses, and changes in net position, or cash flows of the System.
The System did not provide any federal awards to subrecipients during the year ended July 31, 2023.
The System issued Series 2022 Bonds to provide for the permanent financing of the Hospital remodel project through a direct loan, as part of the Rural Development Program. The balance outstanding at July 31, 2023 for the 2022 Bonds was $29,954,000, as reported in the System’s balance sheet. Loans outstanding at the beginning of the year were $30,405,000 and have been included in the SEFA.
Expenditures under CFDA 93.498, Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution, applies the guidance of the U.S. Department of Health and Human Services (HHS). For the PRF program, the amount on the SEFA is reported based on the PRF portal submission guidelines. Payments from HHS for the PRF are assigned to one of seven Payment Received Periods based upon the date each payment from the PRF was received. Each Period has a specified Period of Availability and timing of reporting requirements. The SEFA includes those qualifying expenditures and/or lost revenues that were reported in the PRF portal for Periods 4 and 5 (Payment Received Periods from July 1, 2021 to December 31, 2021 and January 1, 2022 to June 30, 2022, respectively; and Periods of Availability from January 1, 2020 to December 31, 2022 and January 1, 2020 to June 30, 2023, respectively). As such, the amount presented in this SEFA will differ from amounts presented in the statement of revenues, expenses, and changes in net position.
For the year ended July 31, 2023, the System received $-0- in federally donated PPE in response to the COVID-19 pandemic (unaudited).

Finding Details

Finding 2023-001
COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number 93.498 U.S. Department of Health and Human Services Condition - The System is required to prepare and submit the Period 4 Provider Relief Fund report to the U.S. Department of Health and Human Services. This report is to be prepared using accurate financial information and submitted by the deadline Context - The Period 4 Provider Relief Fund report was tested. An error in the input of expenses caused incorrect reporting of supplies expense in one quarter that resulted in supplies being overstated by $1,090,751. After correcting the error, there is sufficient expenses to cover amounts received and as such, there are no questioned costs. Questioned Costs - None Cause - Internal controls over compliance were not in place to ensure the System properly input expenses in their report. Effect - Expenses were not accurately reported. Recommendation - Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Views of Responsible Officials and Planned Corrective Actions - The System implemented enhanced financial reporting procedures effective November 1, 2024. These procedures include the use of more detailed reports with sub-categories of expenses rather than reliance solely on the Authority’s summarized income statement when aggregating data.