Dewitt Medical District d.b.a Cuero Regional Hospital

COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number 93.498 U.S. Department of Health and Human Services Criteria: Reporting (45 CFR 75.342) Condition: The District is required to prepare and submit the Period 4 Provider Relief Fund report to the U.S. Department of Health and Human Services. This report is to be prepared using accurate financial information and submitted by the deadline established. Questioned costs: None. Context: The Period 4 Provider Relief Fund report was tested. The District selected option 3 to report lost revenues based on quarterly actual amounts. An error in the input of lost revenues in one quarter reported was identified that resulted in lost revenues being overstated by $780,356. After correcting the error, there is sufficient lost revenue to cover amounts received and as such, there are no questioned costs. Cause: Internal controls over compliance were not in place to ensure the District properly input lost revenue in their report under option 3. Effect: Errors were made in input of quarterly lost revenue. Lost revenue was not accurately reported. Recommendation: Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Identification as a repeat finding: This is a repeat finding. See 2022-001. Views of responsible officials and planned corrective actions: Management agrees with the finding. This is a repeat finding due to the Period 4 Provider Relief Fund report being submitted prior to completion of the 2022 Single Audit. Policies and procedures over federal grant reporting will be modified to ensure reports are prepared using complete and accurate information. We will increase compensating controls by introducing additional oversight and review for future COVID-19 Provider Relief Fund reporting. Lynn Falcone, CEO, will be responsible to ensure this is accomplished. The corrective action plan will be implemented by September 30, 2024.

Corrective Action Plan for Finding 2023-001 We are in receipt of the Finding Required to be Reported by Uniform Guidance, regarding other instance of noncompliance with respect to Reporting. Management agrees with the finding. Policies and procedures over federal grant reporting will be modified to ensure reports are prepared using complete and accurate information. We will increase compensating controls by introducing additional oversight and review for future COVID-19 Provider Relief Fund reporting. Lynn Falcone, CEO will be responsible to ensure this is accomplished The District had enough lost revenues within Period 4 that the amount of the error does not impact the finding received. The corrective action plan will be implemented by September 30, 2024.

2022-001

COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number 93.498 U.S. Department of Health and Human Services Criteria: Reporting (45 CFR 75.342) Condition: The District is required to prepare and submit period two and three provider relief fund reports to the U.S. Department of Health and Human Services. These reports are to be prepared using accurate financial information and submitted by the deadline established. Questioned costs: None. Context: The period two and three provider relief fund reports were tested. The district selected option 3 to report lost revenues based on quarterly actual amounts. A material error in the input of lost revenues in one quarter reported was identified. Cause: Internal controls over compliance were not in place to ensure the District properly input lost revenue in their report under option 3. Effect: Errors were made in input of quarterly lost revenue. Lost revenue was not accurately reported. Recommendation: Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Identification as a repeat finding: Not a repeat finding. Views of responsible officials and planned corrective actions: Management agrees with the finding. Policies and procedures over federal grant reporting will be modified to ensure reports are prepared using complete and accurate information. We will increase compensating controls by introducing additional oversight and review for future COVID-19 Provider Relief Fund reporting. Lynn Falcone, CEO, will be responsible to ensure this is accomplished. The District had enough expenditures for Period 2 and 3 funding received so that no lost revenues were utilized as a basis for the funds received. The corrective action plan will be implemented by September 30, 2023.

Corrective Action Plan for Finding 2022-001 We are in receipt of the Finding Required to be Reported by Uniform Guidance, regarding other instance of noncompliance with respect to Reporting. Management agrees with the finding. Policies and procedures over federal grant reporting will be modified to ensure rpeorts are prepared using complete and accurate information. We will increase compensating controls by introducing additional oversight and review for future COVID-19 Provider Relief Fund reporting. Lynn Falcone, CEO will be responsible to ensure this is accomplished The District had enough expenditures for Period 2 and 3 funding received so that no lost revenues were utilized as a basis for the funds received. The corrective action plan will be implemented by September 30, 2023.