Finding 1179948 (2021-003)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2021

Accepted

2026-03-17

Audit: 392296

Organization: ADAMS COUNTY PUBLIC HOSPITAL DISTRICT #3 D/B/A OTHELLO COMMUNITY HOSPITAL (WA)

Auditor: WIPFLI LLP

AI Summary

Core Issue: The Provider Relief Fund submission for period 1 was filed late, indicating ineffective internal controls.
Impacted Requirements: Noncompliance with reporting deadlines could lead to potential recoupment of funds.
Recommended Follow-Up: Management should ensure timely reporting of all PRF funds to comply with Terms and Conditions.

Finding Text

Finding 2021-003 Program Name/CFDA Title: Provider Relief Fund Federal Assistance Listing Number: 93.498 Federal Agency: U.S. Department of Health and Human Services Type of Finding: Noncompliance, Significant Deficiency Questioned Cost: None Compliance Requirement: Reporting Condition: During the audit, it was determined the Provider Relief Funds portal submission for period 1 was filed late. The District’s internal controls related to the reporting of the Provider Relief Fund payments were not effective and therefore was out of compliance with reporting requirements. Criteria: The Provider Relief Fund Portal Reporting due date for Period 1 was September 30, 2021. Cause: As a result of the COVID-19 pandemic, financial constraints and corresponding staffing challenges, the accounting and finance team at the District was unable to complete the required PRF portal submission on a timely basis. At the same time, the accounting and finance team were faced with other administrative and operational matters requiring immediate attention to help ensure the District remained operational. The financial and staffing constraints resulted in the late submissions of the PRF portal submission. Effect: Provider Relief Fund recipients that do not report funds received within the respective time periods are out of compliance with payment Terms and Conditions and may be subject to recoupment. Recommendation: We recommend that management meet future reporting deadlines and include all PRF funds received to ensure that they are in compliance with the Provider Relief Fund Terms and Conditions. View of Responsible Management agrees with the finding above. Officials:

Corrective Action Plan

The District hired a new Chief Financial Officer in 2023 and was able to catch the District up on three years of financials statements and all missing audits. The new CFO made the following changes to ensure compliance: 1. Update internal controls and monitoring. The new CFO created a Federal Funding Monitoring and Reporting Policy that specifies that responsibilities over compliance, expenditures, and reporting. 2. Implement Process Improvements. The new CFO and Accounts Payable were able to identify grant fund expenditures and work closely to make sure all future grant expenditures are identified and tracked. 3. Communicate with External Audit Team. The new CFO communicates regularly with the external audit team to ensure they are aware of the grant funds received and the type of audit that is required and coordinate audits with plenty of time to complete the audit before deadlines.

Other Findings in this Audit

1179947 2021-002

Material Weakness Repeat
1179949 2021-004

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
93.498	PROVIDER RELIEF FUND AND AMERICAN RESCUE PLAN (ARP) RURAL DISTRIBUTION	$3.86M
93.461	HRSA COVID-19 CLAIMS REIMBURSEMENT FOR THE UNINSURED PROGRAM AND THE COVID-19 COVERAGE ASSISTANCE FUND	$351,360
93.301	SMALL RURAL HOSPITAL IMPROVEMENT GRANT PROGRAM	$10,878