Audit 40817

FY End
2022-12-31
Total Expended
$1.11M
Findings
2
Programs
3
Year: 2022 Accepted: 2023-09-28
Auditor: Fustcharles LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
46714 2022-002 - - L
623156 2022-002 - - L

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $1.07M Yes 1
93.889 National Bioterrorism Hospital Preparedness Program $12,415 - 0
93.301 Small Rural Hospital Improvement Grant Program $12,177 - 0

Contacts

Name Title Type
KKL5CPCKJQ74 Raeanne Lafave Auditee
3157827148 Dieter Steigerwald 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 auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of the Clifton-Fine Health Care Corporation and Subsidiary (the 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, changes in financial position or cash flows of the Hospital.
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 auditee did not use the de minimis cost rate. The Hospital 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 auditee did not use the de minimis cost rate. The Hospital 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 $1,066,454. The Hospital incurred eligible expenses (including lost revenue) and, therefore, recognized revenue totalling $971,576 for the year ended December 31, 2021 and $94,878 for the year ended December 31, 2022 on the consolidated financial statements. In accordance with the 2022 compliance supplement, the programs expenditures recognized on the schedule are based on the reporting to DHHS for Period 4, defined as payments received during July 1, 2021 to December 31, 2021 of $1,066,454 as required under the program.

Finding Details

2022-002 ? Lost Revenue Reporting ? Compliance Finding U.S. Department of Health and Human Services: Provider Relief Fund and American Rescue Plan (ARP) Rural Distributions (Federal Assistance Listing Number 93.498) Criteria: Under the terms and conditions of the awards, accurate amounts that agree with the entity's financial records are required to be reported in the Provider Relief Fund report. Condition: The Period 4 Provider Relief Fund report was submitted on March 31, 2023 during the financial statement audit for the year ending December 31, 2022. The Hospital reported actual revenues for 2022 in the Provider Relief Fund report that were not accurate and do not agree to audited financial statements. Context: This finding appears to be an isolated instance. Effect: The actual revenue for 2022 was understated by $2,433,204 within the Provider Relief Fund report, which resulted in an overstatement of lost revenue to be claimed in future periods by the same amount. The reporting did not impact the PRF funding received and retained by the Hospital due to the error. Cause: Adjustments were made during the audit in conjunction with management that impacted the actual 2022 net patient service revenue, after the reporting to HRSA for period 4. Recommendation: We recommend the Hospital update the revenue data for 2022 actual revenue in future HRSA PRF reporting periods.
2022-002 ? Lost Revenue Reporting ? Compliance Finding U.S. Department of Health and Human Services: Provider Relief Fund and American Rescue Plan (ARP) Rural Distributions (Federal Assistance Listing Number 93.498) Criteria: Under the terms and conditions of the awards, accurate amounts that agree with the entity's financial records are required to be reported in the Provider Relief Fund report. Condition: The Period 4 Provider Relief Fund report was submitted on March 31, 2023 during the financial statement audit for the year ending December 31, 2022. The Hospital reported actual revenues for 2022 in the Provider Relief Fund report that were not accurate and do not agree to audited financial statements. Context: This finding appears to be an isolated instance. Effect: The actual revenue for 2022 was understated by $2,433,204 within the Provider Relief Fund report, which resulted in an overstatement of lost revenue to be claimed in future periods by the same amount. The reporting did not impact the PRF funding received and retained by the Hospital due to the error. Cause: Adjustments were made during the audit in conjunction with management that impacted the actual 2022 net patient service revenue, after the reporting to HRSA for period 4. Recommendation: We recommend the Hospital update the revenue data for 2022 actual revenue in future HRSA PRF reporting periods.