FAC Explorer

Audit 10680

FY End
2023-06-30
Total Expended
$26.03M
Findings
8
Programs
2
Organization: Madison Community Hospital (SD)
Year: 2023 Accepted: 2024-01-10
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
8103 2023-003 Material Weakness Yes P
8104 2023-003 Material Weakness Yes P
8105 2023-003 Material Weakness Yes P
8106 2023-003 Material Weakness Yes P
584545 2023-003 Material Weakness Yes P
584546 2023-003 Material Weakness Yes P
584547 2023-003 Material Weakness Yes P
584548 2023-003 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $7.33M Yes 1
93.301 Small Rural Hospital Improvement Grant Program $13,011 - 0

Contacts

Name Title Type
RUWKTR4ZN935 Teresa Mallett Auditee
6052566551 Joy Feige Auditor
No contacts on file

Notes to SEFA

Title: Community Facilities Loans Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Madison Community Hospital d/b/a Madison Regional Health System (the System) under programs of the federal government for the year ended June 30, 2023. The information 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 System, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the System. Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The System does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. Expenditures reporting in this schedule consist of the beginning of the year outstanding loan balance for the direct loans and the beginning of the year outstanding bonds for the guaranteed bonds. There were no loan advances during the year ended June 30, 2023. The outstanding balances at June 30, 2023 were $8,052,110, $7,159,785, and $3,132,406 for the 2016 direct USDA loans and $6,869,670 for the Series 2013A Secured America Bond guaranteed by USDA.

Finding Details

Finding 2023-003
2023-003 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance -Other Criteria: Proper controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (the schedule) and accompanying notes to the schedule. Condition: The System does not have an internal control system designed to provide for the preparation of the schedule and notes to the schedule. As auditors, we were requested to assist with the preparation of the schedule and notes to the schedule. Cause: Auditor assistance with the preparation of the schedule is not unusual as the schedule has unique and specialized requirements and preparation is only required when the System meets a specific threshold of federal expenditures. Effect: There is a reasonable possibility that the System would not be able to draft the schedule and notes to the schedule that are correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Year: Yes, prior year finding 2022-003 Recommendation: While we recognized that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to the System’s schedule and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-003
2023-003 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance -Other Criteria: Proper controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (the schedule) and accompanying notes to the schedule. Condition: The System does not have an internal control system designed to provide for the preparation of the schedule and notes to the schedule. As auditors, we were requested to assist with the preparation of the schedule and notes to the schedule. Cause: Auditor assistance with the preparation of the schedule is not unusual as the schedule has unique and specialized requirements and preparation is only required when the System meets a specific threshold of federal expenditures. Effect: There is a reasonable possibility that the System would not be able to draft the schedule and notes to the schedule that are correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Year: Yes, prior year finding 2022-003 Recommendation: While we recognized that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to the System’s schedule and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-003
2023-003 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance -Other Criteria: Proper controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (the schedule) and accompanying notes to the schedule. Condition: The System does not have an internal control system designed to provide for the preparation of the schedule and notes to the schedule. As auditors, we were requested to assist with the preparation of the schedule and notes to the schedule. Cause: Auditor assistance with the preparation of the schedule is not unusual as the schedule has unique and specialized requirements and preparation is only required when the System meets a specific threshold of federal expenditures. Effect: There is a reasonable possibility that the System would not be able to draft the schedule and notes to the schedule that are correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Year: Yes, prior year finding 2022-003 Recommendation: While we recognized that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to the System’s schedule and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-003
2023-003 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance -Other Criteria: Proper controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (the schedule) and accompanying notes to the schedule. Condition: The System does not have an internal control system designed to provide for the preparation of the schedule and notes to the schedule. As auditors, we were requested to assist with the preparation of the schedule and notes to the schedule. Cause: Auditor assistance with the preparation of the schedule is not unusual as the schedule has unique and specialized requirements and preparation is only required when the System meets a specific threshold of federal expenditures. Effect: There is a reasonable possibility that the System would not be able to draft the schedule and notes to the schedule that are correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Year: Yes, prior year finding 2022-003 Recommendation: While we recognized that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to the System’s schedule and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-003
2023-003 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance -Other Criteria: Proper controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (the schedule) and accompanying notes to the schedule. Condition: The System does not have an internal control system designed to provide for the preparation of the schedule and notes to the schedule. As auditors, we were requested to assist with the preparation of the schedule and notes to the schedule. Cause: Auditor assistance with the preparation of the schedule is not unusual as the schedule has unique and specialized requirements and preparation is only required when the System meets a specific threshold of federal expenditures. Effect: There is a reasonable possibility that the System would not be able to draft the schedule and notes to the schedule that are correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Year: Yes, prior year finding 2022-003 Recommendation: While we recognized that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to the System’s schedule and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-003
2023-003 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance -Other Criteria: Proper controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (the schedule) and accompanying notes to the schedule. Condition: The System does not have an internal control system designed to provide for the preparation of the schedule and notes to the schedule. As auditors, we were requested to assist with the preparation of the schedule and notes to the schedule. Cause: Auditor assistance with the preparation of the schedule is not unusual as the schedule has unique and specialized requirements and preparation is only required when the System meets a specific threshold of federal expenditures. Effect: There is a reasonable possibility that the System would not be able to draft the schedule and notes to the schedule that are correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Year: Yes, prior year finding 2022-003 Recommendation: While we recognized that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to the System’s schedule and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-003
2023-003 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance -Other Criteria: Proper controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (the schedule) and accompanying notes to the schedule. Condition: The System does not have an internal control system designed to provide for the preparation of the schedule and notes to the schedule. As auditors, we were requested to assist with the preparation of the schedule and notes to the schedule. Cause: Auditor assistance with the preparation of the schedule is not unusual as the schedule has unique and specialized requirements and preparation is only required when the System meets a specific threshold of federal expenditures. Effect: There is a reasonable possibility that the System would not be able to draft the schedule and notes to the schedule that are correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Year: Yes, prior year finding 2022-003 Recommendation: While we recognized that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to the System’s schedule and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-003
2023-003 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance -Other Criteria: Proper controls over financial reporting include the ability to prepare the schedule of expenditures of federal awards (the schedule) and accompanying notes to the schedule. Condition: The System does not have an internal control system designed to provide for the preparation of the schedule and notes to the schedule. As auditors, we were requested to assist with the preparation of the schedule and notes to the schedule. Cause: Auditor assistance with the preparation of the schedule is not unusual as the schedule has unique and specialized requirements and preparation is only required when the System meets a specific threshold of federal expenditures. Effect: There is a reasonable possibility that the System would not be able to draft the schedule and notes to the schedule that are correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Year: Yes, prior year finding 2022-003 Recommendation: While we recognized that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to the System’s schedule and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.