Audit 46316

FY End
2022-03-31
Total Expended
$10.67M
Findings
2
Programs
7
Year: 2022 Accepted: 2022-10-19
Auditor: Clark Nuber P S

Organization Exclusion Status:

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Contacts

Name Title Type
H96GWY8JUSA3 Amanda Barta Auditee
5097666609 Vincent Stevens Auditor
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Notes to SEFA

Title: COVID-19 - Provider Relief Funds Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Moses Lake Community Health Center and Subsidiary (collectively, the Organization) 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 (CFR) 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 Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. 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. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. Passthrough entity identifying numbers are presented where available. The Organization has elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Expenses incurred under federal programs are subject to audit by the awarding agencies. If, as a result of such audit, certain expenses incurred are determined to be nonreimbursable, the Organization may be liable for repayment of disallowed expenses previously claimed or received. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The Organization was the recipient of funding under assistance listing number 93.498, Provider Relief Fund (PRF), and as required based on guidance in the 2021 OMB Compliance Supplement, the Schedule includes all period 1 funds received between April 10, 2020 to June 30, 2020 and expended by June 30, 2021 as reported to the Department Health and Human Services via the PRF Reporting Portal. During the year ended March 31, 2021, $551,520 of the period 1 PRF funds received was recognized as support due to COVID19 pandemic in the Organizations consolidated financial statements for the year then ended. The remaining period 1 PRF funds received of $281,360 was recognized as support during the year ended March 31, 2022.

Finding Details

Finding 2022-001 Significant deficiency in internal controls over compliance and instances of noncompliance related to activities allowed and unallowed principles compliance requirement. Federal Agency: United States Department of Health and Human Services Program Title: HRSA COVID-19 Uninsured Program Federal Assistance Number: 93.461 Award Number: Not applicable Award Period: February 4, 2020 through April 5, 2022 Criteria Per the standards contained in Title 2 US Code of Federal Regulations Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, Subpart D - Post Federal Award Requirements, Section 200.303, non-Federal entities are required to establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The terms and conditions of the Federal award referenced require that if the recipient charged any uninsured individuals a fee relating to COVID-19 testing and/or testing related items, vaccine administration, care, or treatment for which the recipient subsequently received a payment from the uninsured program fund, the recipient was to communicate to the uninsured individuals that they do not owe for any portion of the services. If the uninsured individual paid the recipient for any portion of the services, the recipient was to return the payment in a timely manner. Condition/Context for Evaluation During testing for the year ended March 31, 2022, we noted that for four of the forty transactions selected, the Organization had collected payments from individuals in the amount of $274.75 and had not refunded the amounts in a timely manner. This was not a statistical sample. Effect or Potential Effect The Organization did not fully comply with the requirements specified in the terms and conditions of the Federal Award. Questioned Costs Not Applicable Cause The Organization?s internal controls did not ensure that if the uninsured individual paid for any portion of the services, that those payment were returned in a timely manner. Repeat Finding Not a repeat finding. Recommendation We recommend the Organization implement the necessary internal controls to ensure the terms and conditions of the Federal award are adhered to and that any refunds due to patients are processed timely. Views of Responsible Officials of Auditee Management agrees with the finding and has provided the accompanying corrective action plan.
Finding 2022-001 Significant deficiency in internal controls over compliance and instances of noncompliance related to activities allowed and unallowed principles compliance requirement. Federal Agency: United States Department of Health and Human Services Program Title: HRSA COVID-19 Uninsured Program Federal Assistance Number: 93.461 Award Number: Not applicable Award Period: February 4, 2020 through April 5, 2022 Criteria Per the standards contained in Title 2 US Code of Federal Regulations Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, Subpart D - Post Federal Award Requirements, Section 200.303, non-Federal entities are required to establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The terms and conditions of the Federal award referenced require that if the recipient charged any uninsured individuals a fee relating to COVID-19 testing and/or testing related items, vaccine administration, care, or treatment for which the recipient subsequently received a payment from the uninsured program fund, the recipient was to communicate to the uninsured individuals that they do not owe for any portion of the services. If the uninsured individual paid the recipient for any portion of the services, the recipient was to return the payment in a timely manner. Condition/Context for Evaluation During testing for the year ended March 31, 2022, we noted that for four of the forty transactions selected, the Organization had collected payments from individuals in the amount of $274.75 and had not refunded the amounts in a timely manner. This was not a statistical sample. Effect or Potential Effect The Organization did not fully comply with the requirements specified in the terms and conditions of the Federal Award. Questioned Costs Not Applicable Cause The Organization?s internal controls did not ensure that if the uninsured individual paid for any portion of the services, that those payment were returned in a timely manner. Repeat Finding Not a repeat finding. Recommendation We recommend the Organization implement the necessary internal controls to ensure the terms and conditions of the Federal award are adhered to and that any refunds due to patients are processed timely. Views of Responsible Officials of Auditee Management agrees with the finding and has provided the accompanying corrective action plan.