EIN: 946004020
UEI: UPKCM7YCG264
Audit also covers 3 related EINs: 352401992, 770438269, 770439213 · unlinked EINs have no separate FAC filing
Audited by: Baker Tilly US, LLP
Oversight agency: 97 [Department of Homeland Security]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 23, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by June 23, 2026 (76 days ago).
What is a management decision? →FAC accepted this audit on January 19, 2024 — management decision was due July 19, 2024.
FAC accepted this audit on September 29, 2022 — management decision was due March 29, 2023.
Criteria: The System should have appropriate internal controls in place to ensure that reporting requirements are met and amounts utilized in reports are calculated accurately and in accordance with 45 CFR 75.342. Condition and Context: The Period 1 Provider Relief Fund (PRF) report submitted for Salinas Valley Memorial Healthcare System (SVMHS) was tested. The System elected to use Lost Revenues Option 1 to report lost revenue based on quarterly actuals. Amounts reported as quarterly net patient service revenue were not reconciled properly to supporting documents, resulting in an incorrectly reported total lost revenue. Further, during our testing of allowable cost, an error was discovered in the Period 1 PRF report submitted on September 30, 2021 for Salinas Valley Medical Clinic (?SVMC?). The error resulted in an overstatement of $231,000 in expenditures. The overstatement had no impact in the amounts retained by SVMC (and the System overall) as there is sufficient unreimbursed expenses reported by SVMC. Cause: PRF guidance was not thoroughly reviewed and researched. Effect: Errors were made in the quarterly reporting of Total Revenue/Net Charges from Patient Care for SVMHS, as well as Other PRF expenses reporting for SVMC. However, we note there was no impact to total funding received or retained by SVMC and the System overall due to the error. Independent calculations of the lost revenue utilizing the amounts that should have been reported were performed and will be accurately reported on the next PRF reporting. Based on these calculations, lost revenue exceeded total PRF amounts received in period 1. The total amount of funding recognized on the basis of lost revenue for period 1 was accurate and the amount reported per the Schedule of Expenditures for Federal Awards (?SEFA?) was also accurate. Independent testing was also performed on the corrected Other PRF expenses for SVMC, resulting in no change in amounts retained by SVMC. Repeat Finding: This is not a repeat finding. Recommendation: Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Review controls should be in place by someone other than the preparer of the report to ensure information is accurate prior to submission of the report.
Show full finding ▾Hide full finding ▴Criteria: The System should have appropriate internal controls in place to ensure that reporting requirements are met and amounts utilized in reports are calculated accurately and in accordance with 45 CFR 75.342. Condition and Context: The Period 1 Provider Relief Fund (PRF) report submitted for Salinas Valley Memorial Healthcare System (SVMHS) was tested. The System elected to use Lost Revenues Option 1 to report lost revenue based on quarterly actuals. Amounts reported as quarterly net patient service revenue were not reconciled properly to supporting documents, resulting in an incorrectly reported total lost revenue. Further, during our testing of allowable cost, an error was discovered in the Period 1 PRF report submitted on September 30, 2021 for Salinas Valley Medical Clinic (?SVMC?). The error resulted in an overstatement of $231,000 in expenditures. The overstatement had no impact in the amounts retained by SVMC (and the System overall) as there is sufficient unreimbursed expenses reported by SVMC. Cause: PRF guidance was not thoroughly reviewed and researched. Effect: Errors were made in the quarterly reporting of Total Revenue/Net Charges from Patient Care for SVMHS, as well as Other PRF expenses reporting for SVMC. However, we note there was no impact to total funding received or retained by SVMC and the System overall due to the error. Independent calculations of the lost revenue utilizing the amounts that should have been reported were performed and will be accurately reported on the next PRF reporting. Based on these calculations, lost revenue exceeded total PRF amounts received in period 1. The total amount of funding recognized on the basis of lost revenue for period 1 was accurate and the amount reported per the Schedule of Expenditures for Federal Awards (?SEFA?) was also accurate. Independent testing was also performed on the corrected Other PRF expenses for SVMC, resulting in no change in amounts retained by SVMC. Repeat Finding: This is not a repeat finding. Recommendation: Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Review controls should be in place by someone other than the preparer of the report to ensure information is accurate prior to submission of the report.
The System has corrected the lost revenue calculation totaling $2,419,883.81 (which will actually benefit future submittals for the System). Critically important to note, this correction had no impact to total funding received or retained from the Federal Government in the Phase 1 reporting period as of 09/30/2021. This correction increased the carryover that may be applied to Phase 4 reporting which now totals $7,111,680.72. When the amounts were reported to cover the Phase 1 Reportable Other PRF Payments of $11,044,630.38, the regulations and reporting criteria were unclear, untimely, and subject to interpretation across the industry as this was the first time this type of program had been initiated. Management sought guidance from many trade groups and consultants who reviewed our work before it was submitted. Now that we have clear guidance, going forward, we will formalize our process through creation of a policy and procedure as approved by management, that will insure there are no errors in future submittals. Anticipated Completion Date: December 31, 2022 Responsible Party for Corrective Action Plan: Augustine Lopez, CFO
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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