Audit 47305

FY End
2022-06-30
Total Expended
$9.17M
Findings
2
Programs
3
Year: 2022 Accepted: 2023-09-28

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
48886 2022-001 Material Weakness - ABL
625328 2022-001 Material Weakness - ABL

Programs

Contacts

Name Title Type
MBNDY6QC79W5 Allen Butcher Auditee
9128196000 Bert Bennett Auditor
No contacts on file

Notes to SEFA

Title: Non-cash Awards Accounting Policies: 1. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations Part 200, award activity of St. Josephs/Candler Health System, Inc. under programs of the federal 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 System, it is not intended to and does not present the financial position, change in net assets, or cash flows of the System.2. Expenditures reported on the Schedule are reported on the accrual basis of accounting which is consistent with the preparation of the Systems 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 2 and Period 3 as specified in the OMB Compliance Supplement. Period 2 and Period 3 includes PRF amounts of the following entities: Legal Entity Name Tax Identification Number Reporting Period AL Number 93.498 St. Joseph's/Candler Urgent Care Centers, LLC 824301751 Period 2 25,945 Candler Hospital, Inc. 580593388 Period 2 40,835 St. Joseph's/Candler Hospital, Inc. 580568702 Period 2 25,950 St. Joseph's/Candler Hospital, Inc. 580568702 Period 3 1,005,189 Candler Hospital, Inc. 580593388 Period 3 4,525,798 St. Joseph's/Candler Urgent Care Centers, LLC824301751 Period 3 1,256,720 Total $6,880,437 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The System did not have any non-cash awards during the fiscal year.
Title: Subrecipients Accounting Policies: 1. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations Part 200, award activity of St. Josephs/Candler Health System, Inc. under programs of the federal 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 System, it is not intended to and does not present the financial position, change in net assets, or cash flows of the System.2. Expenditures reported on the Schedule are reported on the accrual basis of accounting which is consistent with the preparation of the Systems 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 2 and Period 3 as specified in the OMB Compliance Supplement. Period 2 and Period 3 includes PRF amounts of the following entities: Legal Entity Name Tax Identification Number Reporting Period AL Number 93.498 St. Joseph's/Candler Urgent Care Centers, LLC 824301751 Period 2 25,945 Candler Hospital, Inc. 580593388 Period 2 40,835 St. Joseph's/Candler Hospital, Inc. 580568702 Period 2 25,950 St. Joseph's/Candler Hospital, Inc. 580568702 Period 3 1,005,189 Candler Hospital, Inc. 580593388 Period 3 4,525,798 St. Joseph's/Candler Urgent Care Centers, LLC824301751 Period 3 1,256,720 Total $6,880,437 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.

Finding Details

Criteria: Provider Relief Funds (PRF) were provided under the Coronavirus Aid, Relief, and Economic Security Act and are to be used to prevent, prepare for, and respond to coronavirus. The terms and conditions of the award state that "the recipient certifies that it will not use the payment to reimburse expenses or losses that have been reimbursed from other sources or that other sources are obligated to reimburse. Condition: The System reported PRF expenses within the HHS Health Resources and Services Administration (HRSA) Reporting Portal for Period 3 that included expenditures that were also submitted in an application for reimbursement under the Federal Emergency management Agency (FEMA) Assistance Program. Cause: Although the System has a process in place to identify and report allowable expenses, the System?s internal control system did not include an appropriate review process to detect and correct duplicate reporting. Effect and Questioned Costs: The System reported PRF expenses that were submitted to FEMA of approximately $6,283,908; however, FEMA did not reimburse any of those expenditures to the System. Context: Upon identification of the error, the System withdrew the FEMA application to remove the request for reimbursement of PRF reimbursed expenditures. Recommendation: We recommend the System design and implement controls, including levels of review, to ensure that expenditures are in accordance with the terms and conditions of the award. Views of Responsible Officials of the Auditee: The System agrees with this finding. See management?s corrective action plan.
Criteria: Provider Relief Funds (PRF) were provided under the Coronavirus Aid, Relief, and Economic Security Act and are to be used to prevent, prepare for, and respond to coronavirus. The terms and conditions of the award state that "the recipient certifies that it will not use the payment to reimburse expenses or losses that have been reimbursed from other sources or that other sources are obligated to reimburse. Condition: The System reported PRF expenses within the HHS Health Resources and Services Administration (HRSA) Reporting Portal for Period 3 that included expenditures that were also submitted in an application for reimbursement under the Federal Emergency management Agency (FEMA) Assistance Program. Cause: Although the System has a process in place to identify and report allowable expenses, the System?s internal control system did not include an appropriate review process to detect and correct duplicate reporting. Effect and Questioned Costs: The System reported PRF expenses that were submitted to FEMA of approximately $6,283,908; however, FEMA did not reimburse any of those expenditures to the System. Context: Upon identification of the error, the System withdrew the FEMA application to remove the request for reimbursement of PRF reimbursed expenditures. Recommendation: We recommend the System design and implement controls, including levels of review, to ensure that expenditures are in accordance with the terms and conditions of the award. Views of Responsible Officials of the Auditee: The System agrees with this finding. See management?s corrective action plan.