FAC Explorer

Audit 51724

FY End
2022-12-31
Total Expended
$1.24M
Findings
2
Programs
4
Organization: Meeker Memorial Hospital (MN)
Year: 2022 Accepted: 2023-10-01
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
50944 2022-004 Significant Deficiency - ABL
627386 2022-004 Significant Deficiency - ABL

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $1.16M Yes 1
93.155 Rural Health Research Centers $57,908 - 0
93.461 Covid-19 Testing for the Uninsured $15,207 - 0
93.301 Small Rural Hospital Improvement Grant Program $11,206 - 0

Contacts

Name Title Type
CD49P54WVMG5 Nicole Siegner Auditee
3206934512 Ashley Bradnt-Duda 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, suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certaintypes of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance hasbeen provided to a subrecipient. 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 Meeker Memorial Hospital (the Hospital) under programs of the Federal Government for the year ended December 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 the Hospital, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Hospital.
Title: Provider Relief Funds and American Rescue Plan Funds Rural Distribution Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. When applicable, suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certaintypes of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance hasbeen provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Hospital received amounts from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution program (Federal Financial Assistance Listing #93.498) in the amount of $5,662,017 as of December 31, 2022. The PRF expenditures are not recognized on the schedule until the expenditures are included in the reporting to HHS as required under the PRF program. The amount of PRF program expenditures included in the schedule requires management to make estimates and assumptions that affect the reporting amounts. Accordingly, such expenditures are considered a significant estimate. Estimates and assumptions may include reducing actual expenses by amounts that have been reimbursed, or are obligated to be reimbursed by other sources, and estimating marginal increases in expenses related to coronavirus. Actual amounts could differ from those estimates.

Finding Details

Finding 2022-004
Department of Health and Human Services Federal Financial Assistance Listing/CFDA #93.498 COVID-19 Provider Relief Fund and American Rescue Plan Rural Distribution (ARP) Applicable Federal Award Number and Year ? Period 4 TIN #618044389 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and 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 federal awards that provides reasonable assurance that the Hospital is managing the federal awards in compliance with federal statutes, regulations, and terms and conditions of the federal award. Condition: The Hospital?s lost revenue calculation and special reports submitted to the Department of Health and Human Services for Period 4 were not reviewed and approved by a separate individual outside of the preparer. Cause: The Hospital did not have an adequate internal control policy in place to ensure review and approval of the lost revenue calculation and report submitted to the Department of Health and Human Services for Period 4. Effect: The lack of adequate policies governing review and approval increases the risk that employees participating in the federal award administration may not be able to detect and correct noncompliance in a timely manner. Questioned Costs: None reported. Context: Key line items were tested on the Period 4 Department of Health and Human Services special report and supporting lost revenue documents. Repeat Finding from Prior Years: No Recommendation: We recommend the Hospital implement a control process which includes a secondary review and approval of required reports and internal supporting documents such as the expense tracking and lost revenue calculation. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-004
Department of Health and Human Services Federal Financial Assistance Listing/CFDA #93.498 COVID-19 Provider Relief Fund and American Rescue Plan Rural Distribution (ARP) Applicable Federal Award Number and Year ? Period 4 TIN #618044389 Activities Allowed or Unallowed, Allowable Costs/Cost Principles, and 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 federal awards that provides reasonable assurance that the Hospital is managing the federal awards in compliance with federal statutes, regulations, and terms and conditions of the federal award. Condition: The Hospital?s lost revenue calculation and special reports submitted to the Department of Health and Human Services for Period 4 were not reviewed and approved by a separate individual outside of the preparer. Cause: The Hospital did not have an adequate internal control policy in place to ensure review and approval of the lost revenue calculation and report submitted to the Department of Health and Human Services for Period 4. Effect: The lack of adequate policies governing review and approval increases the risk that employees participating in the federal award administration may not be able to detect and correct noncompliance in a timely manner. Questioned Costs: None reported. Context: Key line items were tested on the Period 4 Department of Health and Human Services special report and supporting lost revenue documents. Repeat Finding from Prior Years: No Recommendation: We recommend the Hospital implement a control process which includes a secondary review and approval of required reports and internal supporting documents such as the expense tracking and lost revenue calculation. Views of Responsible Officials: Management agrees with the finding.