FAC Explorer

Audit 8022

FY End
2023-01-31
Total Expended
$828,750
Findings
2
Programs
3
Organization: Cedar County Memorial Hospital (MO)
Year: 2023 Accepted: 2023-12-21
Auditor: Cliftonlarsonallen

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
6156 2023-003 Significant Deficiency - L
582598 2023-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
93.498 Covid-19 Provider Relief Funding and American Rescue Plan Rural Distribution $782,171 Yes 1
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $29,719 - 0
93.301 Small Rural Hospital Improvement Grant Program $16,860 - 0

Contacts

Name Title Type
C672XBQBLW48 Carla Gilbert Auditee
4178763097 Josh Wilks Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 BASIS OF PRESENTATION Accounting Policies: No funds were identified as having been provided to subrecipients by the Hospital and accordingly, no funds identified in the Schedule of Expenditures of Federal Awards are attributable to subrecipient entities. There were no federal awards expended for noncash assistance or insurance. De Minimis Rate Used: Y Rate Explanation: The Hospital has elected to use the 10% de minimis indirect cost rate allowable under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Cedar County Memorial Hospital’s (the Hospital) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the applicable 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 of expenditures of federal awards 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: NOTE 3 RECONCILATION OF SEFA AND FINANCIAL STATEMENTS Accounting Policies: No funds were identified as having been provided to subrecipients by the Hospital and accordingly, no funds identified in the Schedule of Expenditures of Federal Awards are attributable to subrecipient entities. There were no federal awards expended for noncash assistance or insurance. De Minimis Rate Used: Y Rate Explanation: The Hospital has elected to use the 10% de minimis indirect cost rate allowable under the Uniform Guidance. The financial statements reflect revenue recognized from the COVID-19 Provider Relief Fund and American Rescue Plan Rural Distribution of approximately $1,380,000 and $3,000,000 for the years ended January 31, 2023 and 2022, respectively. For the year ended January 31, 2023 the financial statements include the Period 4 COVID-19 Provider Relief Fund and American Rescue Plan Rural Distribution payments as well as approximately $598,000 of amounts recognized from previous periods. The SEFA includes COVID-19 Provider Relief Fund and American Rescue Plan Rural Distribution of $782,171 that were received in Period 4 in accordance with the requirements of the compliance supplement for assistance listing number 93.498.

Finding Details

Finding 2023-003
2023–003 Federal agency: U.S. Department of Health and Human Services Other Programs Federal program title: COVID-19 Provider Relief Funding and American Rescue Plan Rural Distribution CFDA Number: 93.498 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: Period 4 Type of Finding: Significant Deficiency in Internal Control in and over Compliance Compliance Requirement: Reporting Criteria or specific requirement: Surrounding reporting activities, the Hospital’s internal controls should be designed to assure all reporting completed under program guidelines. Condition: During our testing, we identified the Hospital did not have internal controls in place to ensure reporting was completed in accordance with HHS guidelines. Questioned costs: None Context: It was identified the calculation of lost revenue amounts were incorrectly input based on the Hospital’s fiscal year end quarters vs. calendar quarters as required under the reporting guidance. Cause: The Hospital misunderstood the input of the information to be on fiscal vs. calendar year end. Effect: The auditor noted no instances of noncompliance with the provisions of lost revenues claimed, as the quarters lost revenues exceeded the amount claimed; however, the internal controls around compliance over reporting were not effective. Repeat Finding: N/A Recommendation: We recommend the Hospital design controls to ensure that reporting is completing in accordance with latest HHS guidelines. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2023-003
2023–003 Federal agency: U.S. Department of Health and Human Services Other Programs Federal program title: COVID-19 Provider Relief Funding and American Rescue Plan Rural Distribution CFDA Number: 93.498 Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: Period 4 Type of Finding: Significant Deficiency in Internal Control in and over Compliance Compliance Requirement: Reporting Criteria or specific requirement: Surrounding reporting activities, the Hospital’s internal controls should be designed to assure all reporting completed under program guidelines. Condition: During our testing, we identified the Hospital did not have internal controls in place to ensure reporting was completed in accordance with HHS guidelines. Questioned costs: None Context: It was identified the calculation of lost revenue amounts were incorrectly input based on the Hospital’s fiscal year end quarters vs. calendar quarters as required under the reporting guidance. Cause: The Hospital misunderstood the input of the information to be on fiscal vs. calendar year end. Effect: The auditor noted no instances of noncompliance with the provisions of lost revenues claimed, as the quarters lost revenues exceeded the amount claimed; however, the internal controls around compliance over reporting were not effective. Repeat Finding: N/A Recommendation: We recommend the Hospital design controls to ensure that reporting is completing in accordance with latest HHS guidelines. Views of responsible officials: There is no disagreement with the audit finding.