FAC Explorer

Audit 5784

FY End
2023-05-31
Total Expended
$9.15M
Findings
2
Programs
3
Organization: Bothwell Regional Health Center (MO)
Year: 2023 Accepted: 2023-12-07
Auditor: Forvis LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
3685 2023-001 - - L
580127 2023-001 - - L

Programs

ALN Program Spent Major Findings
93.498 Covid-19 Provider Relief Fund (prf) and American Rescue Plan Rural (arp) Distribution $4.57M Yes 1
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $4.49M Yes 0
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $99,058 - 0

Contacts

Name Title Type
U36MAMXR6QG1 Rachel Owens Auditee
6608279337 Ben Schmitz 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. Such expenditures are recognized following the cost principles contained in the Uniform Guidance or the awards’ terms and conditions and FAQs issued by the U.S. Department of Health and Human Services, 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. De Minimis Rate Used: N Rate Explanation: The Health Center has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Bothwell Regional Health Center (the Health Center), a component unit of the City of Sedalia, Missouri, under programs of the federal government for the year ended May 31, 2023. 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 Center, it is not intended to and does not present the financial position, changes in net position or cash flows of the Health Center.
Title: Expenditures Incurred in Previous Fiscal Year Accounting Policies: 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 or the awards’ terms and conditions and FAQs issued by the U.S. Department of Health and Human Services, 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. De Minimis Rate Used: N Rate Explanation: The Health Center has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The total expenses reported on the Schedule related to the Disaster Grants – Public Assistance program (ALN 97.036) were incurred in a previous fiscal year but reported on the current year Schedule as the Project Worksheet was approved during the year ended May 31, 2023.

Finding Details

Finding 2023-001
U.S. Department of Health and Human Services Direct Program: COVID-19 Provider Relief Fund - 93.498 Criteria or Specific Requirement - Reporting (Pub L. No 116-136, 134 Stat. 563 and Pub L. No. 116-139, 134 Stat. 622 and 623). The Provider Relief Fund (PRF) was established in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, P.L. 116-136) to reimburse, through grants or other mechanisms, eligible health care providers for increased expenses or lost revenue attributable to Coronavirus Disease (COVID-19). Entities that received more than $10,000 (either one time or in the aggregate) are required to report the uses of their funds, including the lost revenue reimbursement and documentation of how the lost revenue was calculated. Condition - The Health Center did not properly report revenues by quarter in the period 4 HHS Provider Relief Fund (PRF) portal. Questioned Costs - None Context - Upon testing the period 4 report, six out of the eight quarters of actual revenues within 2021 and 2022 included in the portal did not tie to the Health Center's internal financial statements. Effect - The Health Center submitted revenues that were incorrect for the last two quarters of 2021 and all four quarters for 2022. This error in reporting did not lead to a change in the amount of lost revenues available to be used by the Health Center (all quarters reported zero lost revenues). Cause - The guidance provided by HHS to providers across the country as to how to report their COVID-19-related expenses and lost revenues is, at times, difficult to comprehend and apply. The Health Center's review processes over the portal submission failed to detect the errors. Identification as a Report Finding - Not applicable. Recommendation - The Health Center should continue to refine its understanding of the guidance related to this type of reporting and work with their external advisors to identify areas for improvement prior to submission to the Provider Relief Fund reporting portal. View of Responsible Official and Planned Corrective Actions - The Health Center agrees with this finding, however, does note that this did not in any way impact the amount of lost revenues available to be used under Provider Relief Fund program guidance. See separate auditee document for planned corrective action.
Finding 2023-001
U.S. Department of Health and Human Services Direct Program: COVID-19 Provider Relief Fund - 93.498 Criteria or Specific Requirement - Reporting (Pub L. No 116-136, 134 Stat. 563 and Pub L. No. 116-139, 134 Stat. 622 and 623). The Provider Relief Fund (PRF) was established in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, P.L. 116-136) to reimburse, through grants or other mechanisms, eligible health care providers for increased expenses or lost revenue attributable to Coronavirus Disease (COVID-19). Entities that received more than $10,000 (either one time or in the aggregate) are required to report the uses of their funds, including the lost revenue reimbursement and documentation of how the lost revenue was calculated. Condition - The Health Center did not properly report revenues by quarter in the period 4 HHS Provider Relief Fund (PRF) portal. Questioned Costs - None Context - Upon testing the period 4 report, six out of the eight quarters of actual revenues within 2021 and 2022 included in the portal did not tie to the Health Center's internal financial statements. Effect - The Health Center submitted revenues that were incorrect for the last two quarters of 2021 and all four quarters for 2022. This error in reporting did not lead to a change in the amount of lost revenues available to be used by the Health Center (all quarters reported zero lost revenues). Cause - The guidance provided by HHS to providers across the country as to how to report their COVID-19-related expenses and lost revenues is, at times, difficult to comprehend and apply. The Health Center's review processes over the portal submission failed to detect the errors. Identification as a Report Finding - Not applicable. Recommendation - The Health Center should continue to refine its understanding of the guidance related to this type of reporting and work with their external advisors to identify areas for improvement prior to submission to the Provider Relief Fund reporting portal. View of Responsible Official and Planned Corrective Actions - The Health Center agrees with this finding, however, does note that this did not in any way impact the amount of lost revenues available to be used under Provider Relief Fund program guidance. See separate auditee document for planned corrective action.