FAC Explorer

Audit 41903

FY End
2022-06-30
Total Expended
$3.18M
Findings
8
Programs
4
Organization: Salina Regional Health Center, Inc. (KS)
Year: 2022 Accepted: 2023-09-24
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
42038 2022-004 Significant Deficiency - L
42039 2022-003 Significant Deficiency - P
42040 2022-003 Significant Deficiency - P
42041 2022-003 Significant Deficiency - P
618480 2022-004 Significant Deficiency - L
618481 2022-003 Significant Deficiency - P
618482 2022-003 Significant Deficiency - P
618483 2022-003 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.76M Yes 1
93.461 Hrsa Covid-19 Claims Reimbursement for the Uninsured Program and the Covid-19 Coverage Assistance Fund $679,864 - 1
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $635,737 - 1
84.181 Special Education-Grants for Infants and Families $107,881 - 1

Contacts

Name Title Type
RHAHZ8RWTKJ4 Kevin Hoffman Auditee
7854527003 Tyler Bernier Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting, with the exception for the HRSA COVID-19 Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund (Federal Financial Assistance Listing #93.461), which is based on when the claim is eligible evidenced by the receipt of monies from the federal agency. 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. De Minimis Rate Used: N Rate Explanation: The Health Center does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Salina Regional Health Center, Inc.; Hospice of Salina, Inc. (Hospice); and Lindsborg Community Hospital Association (LCH), collectively the Health Center, under programs of the federal government for the year ended September 30, 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 the Health Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Health Center.The accompanying schedule of expenditures of federal awards does not include the federal grant activity of Cloud County Health Center, Inc. (CCHC). Those awards are reported on the schedule of expenditures of federal awards of CCHC. A separate data collection form will also be submitted.

Finding Details

Finding 2022-004
Department of the Treasury Federal Financial Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds Reporting Significant Deficiency in Internal Control over Compliance 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: The Health Center does not have an internal control system designed to provide for review and approval of required reporting by an individual separate from the preparer. Cause: The Health Center did not have an internal control process in place to ensure a review and approval of the reports submitted for the federal program by someone other than the preparer of the report Effect: There is a potential risk that the reporting submitted for the federal program could contain errors. Questioned Costs: None reported Context: Sampling was not used Repeat Finding from Prior Years: No Recommendation: We recommend that the Health Center implement a control process which includes a documented secondary review and approval of required reports to be submitted for the federal program prior to submission. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-003
Department of Education Federal Financial Assistance Listing #84.181 Special Education-Grants for Infants and Families Department of Health and Human Services Federal Financial Assistance Listing #93.461 HRSA COVID-19 Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund Department of Homeland Security ? Federal Emergency Management Agency Federal Financial Assistance Listing #97.036 Disaster Grants ? Public Assistance (Presidentially Declared Disasters) Preparation of Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control Over Compliance Criteria: Proper Controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (the schedule) and accompanying notes to the schedule. Condition: The Health Center does not have an internal control system designed to provide for a complete and accurate schedule of expenditures of federal awards being audited. We were requested to draft the schedule. Cause: Auditor assistance with preparation of the schedule is not unusual as the schedule has unique and specialized requirements and preparation is only required when the Health Center meets a specified threshold of federal expenditures. Effect: There is a possibility that the schedule may not include all federal programs or contain misstatements is prepared internally. Questioned Costs: None reported Context: Sampling was not used Repeat Finding from Prior Years: No Recommendation: While we recognize that this condition is not unusual, we recommend management be aware of the financial reporting requirements relating to the Health Center?s schedule and the internal controls that impact financial reporting. This would also include a separate review and approval of the schedule from the individual that prepares it. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-003
Department of Education Federal Financial Assistance Listing #84.181 Special Education-Grants for Infants and Families Department of Health and Human Services Federal Financial Assistance Listing #93.461 HRSA COVID-19 Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund Department of Homeland Security ? Federal Emergency Management Agency Federal Financial Assistance Listing #97.036 Disaster Grants ? Public Assistance (Presidentially Declared Disasters) Preparation of Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control Over Compliance Criteria: Proper Controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (the schedule) and accompanying notes to the schedule. Condition: The Health Center does not have an internal control system designed to provide for a complete and accurate schedule of expenditures of federal awards being audited. We were requested to draft the schedule. Cause: Auditor assistance with preparation of the schedule is not unusual as the schedule has unique and specialized requirements and preparation is only required when the Health Center meets a specified threshold of federal expenditures. Effect: There is a possibility that the schedule may not include all federal programs or contain misstatements is prepared internally. Questioned Costs: None reported Context: Sampling was not used Repeat Finding from Prior Years: No Recommendation: While we recognize that this condition is not unusual, we recommend management be aware of the financial reporting requirements relating to the Health Center?s schedule and the internal controls that impact financial reporting. This would also include a separate review and approval of the schedule from the individual that prepares it. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-003
Department of Education Federal Financial Assistance Listing #84.181 Special Education-Grants for Infants and Families Department of Health and Human Services Federal Financial Assistance Listing #93.461 HRSA COVID-19 Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund Department of Homeland Security ? Federal Emergency Management Agency Federal Financial Assistance Listing #97.036 Disaster Grants ? Public Assistance (Presidentially Declared Disasters) Preparation of Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control Over Compliance Criteria: Proper Controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (the schedule) and accompanying notes to the schedule. Condition: The Health Center does not have an internal control system designed to provide for a complete and accurate schedule of expenditures of federal awards being audited. We were requested to draft the schedule. Cause: Auditor assistance with preparation of the schedule is not unusual as the schedule has unique and specialized requirements and preparation is only required when the Health Center meets a specified threshold of federal expenditures. Effect: There is a possibility that the schedule may not include all federal programs or contain misstatements is prepared internally. Questioned Costs: None reported Context: Sampling was not used Repeat Finding from Prior Years: No Recommendation: While we recognize that this condition is not unusual, we recommend management be aware of the financial reporting requirements relating to the Health Center?s schedule and the internal controls that impact financial reporting. This would also include a separate review and approval of the schedule from the individual that prepares it. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-004
Department of the Treasury Federal Financial Assistance Listing #21.027 Coronavirus State and Local Fiscal Recovery Funds Reporting Significant Deficiency in Internal Control over Compliance 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: The Health Center does not have an internal control system designed to provide for review and approval of required reporting by an individual separate from the preparer. Cause: The Health Center did not have an internal control process in place to ensure a review and approval of the reports submitted for the federal program by someone other than the preparer of the report Effect: There is a potential risk that the reporting submitted for the federal program could contain errors. Questioned Costs: None reported Context: Sampling was not used Repeat Finding from Prior Years: No Recommendation: We recommend that the Health Center implement a control process which includes a documented secondary review and approval of required reports to be submitted for the federal program prior to submission. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-003
Department of Education Federal Financial Assistance Listing #84.181 Special Education-Grants for Infants and Families Department of Health and Human Services Federal Financial Assistance Listing #93.461 HRSA COVID-19 Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund Department of Homeland Security ? Federal Emergency Management Agency Federal Financial Assistance Listing #97.036 Disaster Grants ? Public Assistance (Presidentially Declared Disasters) Preparation of Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control Over Compliance Criteria: Proper Controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (the schedule) and accompanying notes to the schedule. Condition: The Health Center does not have an internal control system designed to provide for a complete and accurate schedule of expenditures of federal awards being audited. We were requested to draft the schedule. Cause: Auditor assistance with preparation of the schedule is not unusual as the schedule has unique and specialized requirements and preparation is only required when the Health Center meets a specified threshold of federal expenditures. Effect: There is a possibility that the schedule may not include all federal programs or contain misstatements is prepared internally. Questioned Costs: None reported Context: Sampling was not used Repeat Finding from Prior Years: No Recommendation: While we recognize that this condition is not unusual, we recommend management be aware of the financial reporting requirements relating to the Health Center?s schedule and the internal controls that impact financial reporting. This would also include a separate review and approval of the schedule from the individual that prepares it. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-003
Department of Education Federal Financial Assistance Listing #84.181 Special Education-Grants for Infants and Families Department of Health and Human Services Federal Financial Assistance Listing #93.461 HRSA COVID-19 Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund Department of Homeland Security ? Federal Emergency Management Agency Federal Financial Assistance Listing #97.036 Disaster Grants ? Public Assistance (Presidentially Declared Disasters) Preparation of Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control Over Compliance Criteria: Proper Controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (the schedule) and accompanying notes to the schedule. Condition: The Health Center does not have an internal control system designed to provide for a complete and accurate schedule of expenditures of federal awards being audited. We were requested to draft the schedule. Cause: Auditor assistance with preparation of the schedule is not unusual as the schedule has unique and specialized requirements and preparation is only required when the Health Center meets a specified threshold of federal expenditures. Effect: There is a possibility that the schedule may not include all federal programs or contain misstatements is prepared internally. Questioned Costs: None reported Context: Sampling was not used Repeat Finding from Prior Years: No Recommendation: While we recognize that this condition is not unusual, we recommend management be aware of the financial reporting requirements relating to the Health Center?s schedule and the internal controls that impact financial reporting. This would also include a separate review and approval of the schedule from the individual that prepares it. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-003
Department of Education Federal Financial Assistance Listing #84.181 Special Education-Grants for Infants and Families Department of Health and Human Services Federal Financial Assistance Listing #93.461 HRSA COVID-19 Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund Department of Homeland Security ? Federal Emergency Management Agency Federal Financial Assistance Listing #97.036 Disaster Grants ? Public Assistance (Presidentially Declared Disasters) Preparation of Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control Over Compliance Criteria: Proper Controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (the schedule) and accompanying notes to the schedule. Condition: The Health Center does not have an internal control system designed to provide for a complete and accurate schedule of expenditures of federal awards being audited. We were requested to draft the schedule. Cause: Auditor assistance with preparation of the schedule is not unusual as the schedule has unique and specialized requirements and preparation is only required when the Health Center meets a specified threshold of federal expenditures. Effect: There is a possibility that the schedule may not include all federal programs or contain misstatements is prepared internally. Questioned Costs: None reported Context: Sampling was not used Repeat Finding from Prior Years: No Recommendation: While we recognize that this condition is not unusual, we recommend management be aware of the financial reporting requirements relating to the Health Center?s schedule and the internal controls that impact financial reporting. This would also include a separate review and approval of the schedule from the individual that prepares it. Views of Responsible Officials: Management agrees with the finding.