FAC Explorer

Audit 39796

FY End
2022-03-31
Total Expended
$10.41M
Findings
2
Programs
2
Organization: Hospital Authority of Bainbridge Decatur County, Georgia (GA)
Year: 2022 Accepted: 2022-12-22
Auditor: Draffin & Tucker LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
42935 2022-001 - - ABL
619377 2022-001 - - ABL

Programs

ALN Program Spent Major Findings
93.498 Covid-19 Provider Relief Fund - Period 1 $10.24M Yes 1
93.498 Covid-19 Provider Relief Fund - Period 2 $165,150 Yes 0

Contacts

Name Title Type
RT2WSLWZV2R5 David Paugh Auditee
2292463500 Bert Bennett Auditor
No contacts on file

Notes to SEFA

Title: Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Hospital Authority of Bainbridge, Decatur County, Georgia (Authority) (a component unit of Decatur County), under programs of the federal government for the year ended March 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 Authority, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Authority. Expenditures reported on the Schedule are reported on the accrual basis of accounting which is consistent with the preparation of the Authoritys 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 1 and 2 as specified in the OMB Compliance Supplement. 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: Non-Cash Awards Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Hospital Authority of Bainbridge, Decatur County, Georgia (Authority) (a component unit of Decatur County), under programs of the federal government for the year ended March 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 Authority, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Authority. Expenditures reported on the Schedule are reported on the accrual basis of accounting which is consistent with the preparation of the Authoritys 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 1 and 2 as specified in the OMB Compliance Supplement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Authority did not have any non-cash awards during the fiscal year.

Finding Details

Finding 2022-001
Criteria: Assistance Listing Number 93.498 - COVID-19 Provider Relief Fund Condition: The Authority is required to prepare and submit Period 1 and Period 2 Provider Relief Fund reporting to the U.S. Department of Health and Human Services (HHS). The reporting is to be prepared using accurate financial information and submitted by the established deadlines. The Authority elected to obligate Period 1 Provider Relief Funds to lost revenues utilizing Option 1 based on 2019 actual revenues. Cause: The Authority's Net Revenue from Patient Charges includes a calculation to spread Medicaid supplemental payments equally to each month of the fiscal year because these payments are not received equally throughout the fiscal year but are earned equally throughout the fiscal year. This approach was applied accurately to all quarters through March 31, 2021. This approach was not applied to the last three quarters of 2021. The Authority's fiscal year is March 31 and the Period 2 reporting was due by March 31, 2022. The Authority did not have the ability to close the March 31, 2022 general ledger and spread the accrual-based Medicaid supplemental payments during fiscal year 2022 because of the March 31, 2022 reporting deadline. Effect or Potential Effect: Net Revenue from Patient Charges was understated by $637,571 in the second quarter of 2021, understated by $90,231 in the third quarter of 2021, and overstated by $363,342 in the fourth quarter of 2021. On the HHS Portal submission for Period 1 and Period 2, there was no Lost Revenue calculated or claimed in any quarter of 2021. The corrected amounts of Net Revenue from Patient Charges from the above amounts do not result in any Lost Revenue calculated or claimed in any quarter of 2021. Recommendation: We recommend a detail review of future submissions to ensure accuracy of calculations and reconciliations to supporting source documentation. Views of Responsible Officials: See corrective action plan.
Finding 2022-001
Criteria: Assistance Listing Number 93.498 - COVID-19 Provider Relief Fund Condition: The Authority is required to prepare and submit Period 1 and Period 2 Provider Relief Fund reporting to the U.S. Department of Health and Human Services (HHS). The reporting is to be prepared using accurate financial information and submitted by the established deadlines. The Authority elected to obligate Period 1 Provider Relief Funds to lost revenues utilizing Option 1 based on 2019 actual revenues. Cause: The Authority's Net Revenue from Patient Charges includes a calculation to spread Medicaid supplemental payments equally to each month of the fiscal year because these payments are not received equally throughout the fiscal year but are earned equally throughout the fiscal year. This approach was applied accurately to all quarters through March 31, 2021. This approach was not applied to the last three quarters of 2021. The Authority's fiscal year is March 31 and the Period 2 reporting was due by March 31, 2022. The Authority did not have the ability to close the March 31, 2022 general ledger and spread the accrual-based Medicaid supplemental payments during fiscal year 2022 because of the March 31, 2022 reporting deadline. Effect or Potential Effect: Net Revenue from Patient Charges was understated by $637,571 in the second quarter of 2021, understated by $90,231 in the third quarter of 2021, and overstated by $363,342 in the fourth quarter of 2021. On the HHS Portal submission for Period 1 and Period 2, there was no Lost Revenue calculated or claimed in any quarter of 2021. The corrected amounts of Net Revenue from Patient Charges from the above amounts do not result in any Lost Revenue calculated or claimed in any quarter of 2021. Recommendation: We recommend a detail review of future submissions to ensure accuracy of calculations and reconciliations to supporting source documentation. Views of Responsible Officials: See corrective action plan.