FAC Explorer

Audit 54464

FY End
2022-04-30
Total Expended
$12.40M
Findings
2
Programs
9
Organization: East Georgia Healthcare Center, Inc. (GA)
Year: 2022 Accepted: 2023-01-30
Auditor: Draffin & Tucker LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
61231 2022-002 Significant Deficiency - ABL
637673 2022-002 Significant Deficiency - ABL

Programs

ALN Program Spent Major Findings
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $4.66M Yes 0
93.224 Covid-19 - American Rescue Plan Act Funding for Health Centers $2.15M Yes 0
93.498 Covid-19 - Provider Relief Fund $1.64M Yes 1
93.461 Covid-19 - Covid-19 Testing for the Uninsured $529,215 - 0
93.217 Family Planning_services $507,730 - 0
93.224 Covid-19 - Health Center Cares Act Funding $374,836 Yes 0
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $292,500 Yes 0
93.926 Healthy Start Initiative $124,400 - 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $104,172 - 0

Contacts

Name Title Type
FHJPPMP41R57 Jennie Wren Denmark Auditee
4782372638 Wes Sternenberg Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Notes to Schedule:1. The accompanying schedule of expenditures of federal awards (Schedule) includes the federalaward activity of East Georgia Healthcare Center, Inc. (Center) under programs of the federalgovernment for the year ended April 30, 2022. The information in this Schedule is presentedin accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements for FederalAwards (Uniform Guidance). Because the Schedule presents only a selected portion of theoperations of the Center, it is not intended to and does not present the financial position,change in net assets, or cash flows of the Center.2. Expenditures reported on the Schedule are reported on the accrual basis of accounting whichis consistent with the preparation of the Centers financial statements. Such expenditures arerecognized following the cost principles contained in the Uniform Guidance wherein certaintypes of expenditures are not allowable or are limited as to reimbursement. The ProviderRelief Fund (PRF) amount reported on the Schedule represents the amounts reported to theU.S. Department of Health and Human Services HRSA Reporting Portal for Period 1 asspecified in the OMB Compliance Supplement. The Center did not receive any Period 2 PRFpayments.3. The Center did not have any non-cash awards during the fiscal year.4. There were no awards passed through to sub-recipients.5. The Center has elected to not use the 10% de minimis indirect cost rate under the UniformGuidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-002
Significant Deficiency in Internal Control Over Compliance / Compliance Finding Reference Number: 2022-002 Criteria: Assistance Listing Number 93.498 - COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Condition: The Center is required to prepare and submit complete and accurate Period 1 Provider Relief Fund reporting to the U.S. Department of Health and Human Services (HHS). The reporting is to be prepared using accurate financial information and submitted by the established deadlines. The Center elected to obligate Period 1 Provider Relief Funds to lost revenues utilizing Option 2 based on 2020 budgeted revenues. Cause: The Center experienced an increase in turnover of accounting personnel in addition to constraints arising as a result of COVID-19, which delayed the completion of the financial statements for fiscal year 2021. On the Period 1 submission, the Center?s actual net revenue from patients for certain quarters did not agree to underlying support, due to delayed financial reporting. Effect or Potential Effect: On the Period 1 submission, the Center?s actual net revenue from patients for certain quarters did not agree to underlying support, due to delayed financial reporting. This resulted in an overstatement of lost revenues. Subsequent to the Period 1 submission, the Center identified additional expenditures attributable to COVID-19 which will be reported in future submissions along with the correction of lost revenues to mitigate any impact to the program. Recommendation: We recommend performing timely reconciliations of general ledger accounts and completion of monthly financial statements to ensure the accuracy of amounts reported to internal and external users. Views of Responsible Officials and Planned Corrective Actions: See corrective action plan.
Finding 2022-002
Significant Deficiency in Internal Control Over Compliance / Compliance Finding Reference Number: 2022-002 Criteria: Assistance Listing Number 93.498 - COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Condition: The Center is required to prepare and submit complete and accurate Period 1 Provider Relief Fund reporting to the U.S. Department of Health and Human Services (HHS). The reporting is to be prepared using accurate financial information and submitted by the established deadlines. The Center elected to obligate Period 1 Provider Relief Funds to lost revenues utilizing Option 2 based on 2020 budgeted revenues. Cause: The Center experienced an increase in turnover of accounting personnel in addition to constraints arising as a result of COVID-19, which delayed the completion of the financial statements for fiscal year 2021. On the Period 1 submission, the Center?s actual net revenue from patients for certain quarters did not agree to underlying support, due to delayed financial reporting. Effect or Potential Effect: On the Period 1 submission, the Center?s actual net revenue from patients for certain quarters did not agree to underlying support, due to delayed financial reporting. This resulted in an overstatement of lost revenues. Subsequent to the Period 1 submission, the Center identified additional expenditures attributable to COVID-19 which will be reported in future submissions along with the correction of lost revenues to mitigate any impact to the program. Recommendation: We recommend performing timely reconciliations of general ledger accounts and completion of monthly financial statements to ensure the accuracy of amounts reported to internal and external users. Views of Responsible Officials and Planned Corrective Actions: See corrective action plan.