FAC Explorer

Audit 98783

FY End
2022-03-31
Total Expended
$41.65M
Findings
2
Programs
5
Organization: Commonwealth Health Corporation, Inc. (KY)
Year: 2022 Accepted: 2022-11-07
Auditor: Forvis LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
111779 2022-001 Significant Deficiency - ABL
688221 2022-001 Significant Deficiency - ABL

Programs

ALN Program Spent Major Findings
93.498 Covid-19 Provider Relief Fund $40.02M Yes 1
93.461 Covid-19 Testing for the Uninsured $1.21M - 0
93.697 Covid-19 Testing for Rural Health Clinics $247,307 - 0
93.155 Covid-19 Rural Health Research Centers $157,605 - 0
93.301 Covid-19 Small Rural Hospital Improvement Grant Program $17,095 - 0

Contacts

Name Title Type
NU2BSY7YSFS9 Michele W. Lawless Auditee
2707965591 Bill Leachman Auditor
No contacts on file

Notes to SEFA

Title: FEDERAL LOAN PROGRAM 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule, if any, 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 auditee did not use the de minimis cost rate. The Corporation administered no federal loan programs for the year ended March 31, 2022.
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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule, if any, 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 auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Commonwealth Health Corporation, Inc. (Corporation) under Programs of the federal government for the year ended March 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 Corporation, it is not intended to and does not present the consolidated financial position, changes in net assets, or cash flows of the Corporation.

Finding Details

Finding 2022-001
U.S. Department of Health and Human Services (HHS) ? Federal Assistance Listing No. 93.498, COVID-19 Provider Relief Fund Criteria or specific requirement ? Reporting (45 CFR 75.342) and Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Public Law 116-136, 134 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622 and 623) Condition ? The Corporation is required to prepare and submit Provider Relief Fund reports to HHS. These reports are to be prepared using accurate financial information and submitted by the deadline established. Cause ? Actual patient care-related revenue was adjusted for a Medicaid settlement received during the period; however, the internal financial statements did not include the settlement within patient care-related revenue. Effect or potential effect ? Errors were made in reporting lost revenue for 2020 and 2021. Lost revenue was not accurately reported. Questioned costs ? $2,283,962, which represents lost revenue reported in excess of the properly calculated amount. Context ? An error in the calculation of the lost revenue for the quarters reported was identified. Identification as a repeat finding ? N/A Recommendation ? Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Views of responsible officials ? The Corporation?s management and board agree and will continue to review the requirements related to the program for lost revenues and related reporting. The Corporation had excess incremental healthcare expenses to support the $2,283,962 of questioned costs noted above; therefore, the Corporation has no funding required to be returned.
Finding 2022-001
U.S. Department of Health and Human Services (HHS) ? Federal Assistance Listing No. 93.498, COVID-19 Provider Relief Fund Criteria or specific requirement ? Reporting (45 CFR 75.342) and Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Public Law 116-136, 134 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622 and 623) Condition ? The Corporation is required to prepare and submit Provider Relief Fund reports to HHS. These reports are to be prepared using accurate financial information and submitted by the deadline established. Cause ? Actual patient care-related revenue was adjusted for a Medicaid settlement received during the period; however, the internal financial statements did not include the settlement within patient care-related revenue. Effect or potential effect ? Errors were made in reporting lost revenue for 2020 and 2021. Lost revenue was not accurately reported. Questioned costs ? $2,283,962, which represents lost revenue reported in excess of the properly calculated amount. Context ? An error in the calculation of the lost revenue for the quarters reported was identified. Identification as a repeat finding ? N/A Recommendation ? Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Views of responsible officials ? The Corporation?s management and board agree and will continue to review the requirements related to the program for lost revenues and related reporting. The Corporation had excess incremental healthcare expenses to support the $2,283,962 of questioned costs noted above; therefore, the Corporation has no funding required to be returned.