FAC Explorer

Audit 40854

FY End
2022-07-31
Total Expended
$2.35M
Findings
2
Programs
22
Organization: Hilltop Health Services Corporation (CO)
Year: 2022 Accepted: 2023-01-11
Auditor: Eide Bailly

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
46080 2022-001 Material Weakness - L
622522 2022-001 Material Weakness - L

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $365,848 Yes 1
16.575 Crime Victim Assistance $342,707 - 0
93.558 Temporary Assistance for Needy Families $250,278 Yes 0
93.556 Promoting Safe and Stable Families $191,501 - 0
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $191,414 - 0
93.086 Healthy Marriage Promotion and Responsible Fatherhood Grants $119,136 - 0
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $99,418 - 0
93.958 Block Grants for Community Mental Health Services $96,574 - 0
14.231 Emergency Solutions Grant Program $93,094 - 0
93.778 Medical Assistance Program $88,982 - 0
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $78,533 - 0
93.791 Money Follows the Person Rebalancing Demonstration $71,085 - 0
93.052 National Family Caregiver Support, Title Iii, Part E $64,916 - 0
93.569 Community Services Block Grant $38,297 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $35,607 - 0
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $33,970 - 0
16.582 Crime Victim Assistance/discretionary Grants $31,498 - 0
93.104 Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (sed) $17,696 - 0
93.092 Affordable Care Act (aca) Personal Responsibility Education Program $14,875 - 0
10.558 Child and Adult Care Food Program $11,482 - 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $4,636 - 0
84.425 Elementary and Secondary School Emergency Relief Fund $2,500 - 0

Contacts

Name Title Type
RMMRL4GJ6LR3 Carter Bair Auditee
9702424400 Dave Studebaker 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. When applicable, 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. No federal financial assistance has been provided to a subrecipient during the year ended July 31, 2022. 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 Hilltop Health Services Corporation (Hilltop, the Organization) under programs of the federal government for the year ended July 31, 2022. The information 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 Hilltop, it is not intended to and does not present the financial positions, changes in net assets, or cash flows of Hilltop.
Title: Provider Relief Funds Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient during the year ended July 31, 2022. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Organization received amounts from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund (PRF) program (Federal Financial Assistance Listing/CFDA #93.498) during the year ended July 31, 2021. The Organization incurred eligible expenditures, including lost revenues and, therefore, recognized revenues totaling $365,848 for the year ended July 31, 2021 in the financial statements. In accordance with the compliance supplement addendum, the Organization recognized PRF expenditures of $365,848 on the schedule of federal expenditures and reported to HHS for the period ending June 30,2022, as required under the PRF program.The amount of PRF expenditures included on the schedule requires management to make estimates and assumptions that affect the reported amounts. Accordingly, such expenditures are considered a significant estimate. Estimates and assumptions may include reducing actual expenses by amounts than have been reimbursed or are obligated to be reimbursed by other sources, estimating marginal increases in expenses related to coronavirus and the calculation of lost revenue. Actual results could differ from those estimates.

Finding Details

Finding 2022-001
Department of Health and Human Services Federal Financial Assistance Listing/CFDA 93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 2 TIN #742321009 Material Weakness in Internal Control Over Compliance and Material Noncompliance for Reporting Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: Hilltop reported expenses reimbursed from other sources as Unreimbursed Expenses Attributable to Coronavirus in the Period 2 Department of Health and Human Services (HHS) report. Additionally, due to a formula error, Hilltop omitted certain patient revenues in Q2 ? Q4 of 2021 - actual in the HHS Period 2 Report. Cause: The lost revenues calculations and Period 2 report submitted to HHS not reviewed or approved by an individual separate from the preparer Effect: Without the secondary review and approval and lost revenue were not accurately calculated and the special report submitted was not accurately completed. Questioned Costs: None. The total amount reported should have included an additional $709,816 in revenue that was not included in the Q2 ? Q4 of 2021 - actual lost revenue calculation, which would decrease the lost revenues that were reported to the HHS. These errors in reporting did not result in any questioned costs because, based on testing, Hilltop reported lost revenues attributable to the impact of the coronavirus well in excess of the funding received when using the corrected calculation. As a result, there were no questioned costs. Context: All lost revenue periods were tested. Key line items were tested on the Department of Health and Human Services special report. Repeat Finding from Prior Years: No Recommendation: We recommend the Entity implement a control process which includes a secondary review and approval of the summarized final lost revenue calculation, and a secondary review and approval of required reports to be submitted to the federal agency. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-001
Department of Health and Human Services Federal Financial Assistance Listing/CFDA 93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year ? Period 2 TIN #742321009 Material Weakness in Internal Control Over Compliance and Material Noncompliance for Reporting Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: Hilltop reported expenses reimbursed from other sources as Unreimbursed Expenses Attributable to Coronavirus in the Period 2 Department of Health and Human Services (HHS) report. Additionally, due to a formula error, Hilltop omitted certain patient revenues in Q2 ? Q4 of 2021 - actual in the HHS Period 2 Report. Cause: The lost revenues calculations and Period 2 report submitted to HHS not reviewed or approved by an individual separate from the preparer Effect: Without the secondary review and approval and lost revenue were not accurately calculated and the special report submitted was not accurately completed. Questioned Costs: None. The total amount reported should have included an additional $709,816 in revenue that was not included in the Q2 ? Q4 of 2021 - actual lost revenue calculation, which would decrease the lost revenues that were reported to the HHS. These errors in reporting did not result in any questioned costs because, based on testing, Hilltop reported lost revenues attributable to the impact of the coronavirus well in excess of the funding received when using the corrected calculation. As a result, there were no questioned costs. Context: All lost revenue periods were tested. Key line items were tested on the Department of Health and Human Services special report. Repeat Finding from Prior Years: No Recommendation: We recommend the Entity implement a control process which includes a secondary review and approval of the summarized final lost revenue calculation, and a secondary review and approval of required reports to be submitted to the federal agency. Views of Responsible Officials: Management agrees with the finding.