FAC Explorer

Audit 52363

FY End
2022-12-31
Total Expended
$10.67M
Findings
2
Programs
12
Organization: Southeasthealth System, Inc. (MO)
Year: 2022 Accepted: 2023-09-07
Auditor: Forvis LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
51328 2022-001 Significant Deficiency - C
627770 2022-001 Significant Deficiency - C

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $7.42M Yes 0
84.268 Federal Direct Student Loans $875,355 - 0
93.697 Covid-19 Testing for Rural Health Clinics $732,179 - 0
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $441,838 - 0
93.994 Maternal and Child Health Services Block Grant to the States $336,729 - 0
84.063 Federal Pell Grant Program $279,654 - 0
93.493 U.s. Department of Health and Human Services $144,006 - 0
93.461 Covid-19 Testing for the Uninsured $84,492 - 0
84.425 Education Stabilization Fund $13,227 Yes 1
93.301 Small Rural Hospital Improvement Grant Program $11,359 - 0
84.007 Federal Supplemental Educational Opportunity Grants $11,067 - 0
84.033 Federal Work-Study Program $8,225 - 0

Contacts

Name Title Type
GM3PJEN9NTK5 Steve Haas Auditee
5736515500 Jean Nyberg Auditor
No contacts on file

Notes to SEFA

Title: Note 3 Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of SoutheastHEALTH System, Inc. (the Health System), under programs of the federal government for the year ended December 31, 2022. The information in this Schedule 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 System, it is not intended to and does not present the financial position, results of operations, changes in net assets, or cash flows of the Health System. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. 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. The Health System has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 4 Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of SoutheastHEALTH System, Inc. (the Health System), under programs of the federal government for the year ended December 31, 2022. The information in this Schedule 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 System, it is not intended to and does not present the financial position, results of operations, changes in net assets, or cash flows of the Health System. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Federal Direct Student Loan balances are not included in the Health Systems consolidated financial statements. Loans disbursed during the year are included in federal expenditures presented in the Schedule.
Title: Note 5 Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of SoutheastHEALTH System, Inc. (the Health System), under programs of the federal government for the year ended December 31, 2022. The information in this Schedule 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 System, it is not intended to and does not present the financial position, results of operations, changes in net assets, or cash flows of the Health System. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Personal Protective Equipment (PPE) (Unaudited) SoutheastHEALTH System, Inc. did not receive donated PPE from a federal source during the year ended December 31, 2022.

Finding Details

Finding 2022-001
COVID-19 Education Stabilization Fund Higher Education Emergency Relief Fund Federal Assistance Listing Number 84.425 U.S. Department of Education Criteria or Specific Requirement ? Cash Management (2 CFR 200.305 (b)) Condition ? The Organization did not disburse funds drawn down within 3 calendar days Questioned Costs ? None. Context ? Out of a population of fifteen cash draws, a sample of two draws were selected for testing. The sampling methodology used is not and is not intended to be statistically valid. Of the two draws tested, one was not disbursed within the required timeframe of three calendar days. Effect ? The System's cash management system is not operating within the requirements determined by Department of Education (DOE). Cause ? Management of the Organization does not have sufficient controls in place to ensure funds drawn in advance are disbursed within the required timeframe. Identification as a Repeat Finding ? Not applicable. Recommendation - Management should review cash management processes and establish appropriate controls to ensure funds drawn in advance are disbursed within required timeframes. Views of Responsible Officials and Planned Corrective Actions ? SoutheastHEALTH ("SEH") has developed an organization policy for cash management for federally sponsored grant programs. SEH will generally use the reimbursement method unless there is an immediate cash need to minimize the time elapsing between the drawdown and disbursement of funds.
Finding 2022-001
COVID-19 Education Stabilization Fund Higher Education Emergency Relief Fund Federal Assistance Listing Number 84.425 U.S. Department of Education Criteria or Specific Requirement ? Cash Management (2 CFR 200.305 (b)) Condition ? The Organization did not disburse funds drawn down within 3 calendar days Questioned Costs ? None. Context ? Out of a population of fifteen cash draws, a sample of two draws were selected for testing. The sampling methodology used is not and is not intended to be statistically valid. Of the two draws tested, one was not disbursed within the required timeframe of three calendar days. Effect ? The System's cash management system is not operating within the requirements determined by Department of Education (DOE). Cause ? Management of the Organization does not have sufficient controls in place to ensure funds drawn in advance are disbursed within the required timeframe. Identification as a Repeat Finding ? Not applicable. Recommendation - Management should review cash management processes and establish appropriate controls to ensure funds drawn in advance are disbursed within required timeframes. Views of Responsible Officials and Planned Corrective Actions ? SoutheastHEALTH ("SEH") has developed an organization policy for cash management for federally sponsored grant programs. SEH will generally use the reimbursement method unless there is an immediate cash need to minimize the time elapsing between the drawdown and disbursement of funds.