FAC Explorer

Audit 15025

FY End
2023-09-30
Total Expended
$27.44M
Findings
8
Programs
2
Organization: Baldwin Area Medical Center, Inc. D/b/a Western Wisconsin Health (WI)
Year: 2023 Accepted: 2024-02-01
Auditor: Wipfli LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
11240 2023-001 Significant Deficiency Yes ABHLN
11241 2023-001 Significant Deficiency Yes ABHLN
11242 2023-001 Significant Deficiency Yes ABHLN
11243 2023-001 Significant Deficiency Yes ABL
587682 2023-001 Significant Deficiency Yes ABHLN
587683 2023-001 Significant Deficiency Yes ABHLN
587684 2023-001 Significant Deficiency Yes ABHLN
587685 2023-001 Significant Deficiency Yes ABL

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $8.37M Yes 1
93.498 Provider Relief Fund $1.67M Yes 1

Contacts

Name Title Type
Z5NLYNHT1545 Lea Kaiser Auditee
7156841111 Paul Traczek Auditor
No contacts on file

Notes to SEFA

Title: Note 1: Basis of Presentation Accounting Policies: With the exception of expenditures related to the Provider Relief Fund (“PRF”), expenditures on the Schedule are reported on the accrual basis of accounting and 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. The PRF is not subject to cost principles requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF are based on the PRF period of availability, terms and conditions of the PRF program, and amounts reported in the PRF portal for the reporting period 4, due March 31, 2023. De Minimis Rate Used: N Rate Explanation: Baldwin Area Medical Center, Inc. and Affiliate d/b/a Western Wisconsin Health has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (“Schedule”) includes the federal award activity of Baldwin Area Medical Center, Inc., and Affiliate d/b/a Western Wisconsin Health (the “Organization”). 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 (the “Uniform Guidance”). Because the schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: Note 2: Summary of Significant Accounting Policies Accounting Policies: With the exception of expenditures related to the Provider Relief Fund (“PRF”), expenditures on the Schedule are reported on the accrual basis of accounting and 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. The PRF is not subject to cost principles requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF are based on the PRF period of availability, terms and conditions of the PRF program, and amounts reported in the PRF portal for the reporting period 4, due March 31, 2023. De Minimis Rate Used: N Rate Explanation: Baldwin Area Medical Center, Inc. and Affiliate d/b/a Western Wisconsin Health has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. With the exception of expenditures related to the Provider Relief Fund (“PRF”), expenditures on the Schedule are reported on the accrual basis of accounting and 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. The PRF is not subject to cost principles requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF are based on the PRF period of availability, terms and conditions of the PRF program, and amounts reported in the PRF portal for the reporting period 4, due March 31, 2023.
Title: Note 3: Indirect Cost Accounting Policies: With the exception of expenditures related to the Provider Relief Fund (“PRF”), expenditures on the Schedule are reported on the accrual basis of accounting and 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. The PRF is not subject to cost principles requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF are based on the PRF period of availability, terms and conditions of the PRF program, and amounts reported in the PRF portal for the reporting period 4, due March 31, 2023. De Minimis Rate Used: N Rate Explanation: Baldwin Area Medical Center, Inc. and Affiliate d/b/a Western Wisconsin Health has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Baldwin Area Medical Center, Inc. and Affiliate d/b/a Western Wisconsin Health has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 4: Subrecipients Accounting Policies: With the exception of expenditures related to the Provider Relief Fund (“PRF”), expenditures on the Schedule are reported on the accrual basis of accounting and 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. The PRF is not subject to cost principles requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF are based on the PRF period of availability, terms and conditions of the PRF program, and amounts reported in the PRF portal for the reporting period 4, due March 31, 2023. De Minimis Rate Used: N Rate Explanation: Baldwin Area Medical Center, Inc. and Affiliate d/b/a Western Wisconsin Health has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Baldwin Area Medical Center, Inc. and Affiliate d/b/a Western Wisconsin Health passed no federal awards through to subrecipients.
Title: Note 5: Interest Earned on Provider Relief Funds Accounting Policies: With the exception of expenditures related to the Provider Relief Fund (“PRF”), expenditures on the Schedule are reported on the accrual basis of accounting and 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. The PRF is not subject to cost principles requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF are based on the PRF period of availability, terms and conditions of the PRF program, and amounts reported in the PRF portal for the reporting period 4, due March 31, 2023. De Minimis Rate Used: N Rate Explanation: Baldwin Area Medical Center, Inc. and Affiliate d/b/a Western Wisconsin Health has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. PRF reported in the Schedule included $14,607 of interest earned on PRF proceeds which were used for allowable purposes.
Title: Note 6: Balance of Outstanding Loans Accounting Policies: With the exception of expenditures related to the Provider Relief Fund (“PRF”), expenditures on the Schedule are reported on the accrual basis of accounting and 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. The PRF is not subject to cost principles requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF are based on the PRF period of availability, terms and conditions of the PRF program, and amounts reported in the PRF portal for the reporting period 4, due March 31, 2023. De Minimis Rate Used: N Rate Explanation: Baldwin Area Medical Center, Inc. and Affiliate d/b/a Western Wisconsin Health has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The loan balances presented in the Schedule as federal expenditures are the outstanding at the beginning of the year. There were no new loans received during the year ending September 30, 2023. The amount below is the outstanding loan balances as of September 30, 2023:

Finding Details

Finding 2023-001
Segregation of Duties Condition – Segregation of duties provides stronger internal controls by not allowing one person to have control and responsibility over a complete accounting system (cash receipts, cash disbursements, payroll and purchasing, receiving, and accounts payable). It was noted that certain individuals in the Organization have significant responsibilities or access within the information systems to many of the financial accounting cycles such as accounts payable, payroll, financial accounting, and reporting, which creates a concern over segregation of duties. This was particularly noted within the Adoray organization, where due to the small staff size in the accounting and financial services areas, a lack of segregation of duties exists. Criteria – The lack of proper segregation of duties is considered an internal control weakness. Effect – As a result of not having a sufficient number of individuals in the accounting department to segregate duties, risk of misappropriation and fraudulent transactions in financial reporting increases. Recommendation – We encourage the Board of Directors and management to strengthen internal controls or implement mitigating controls where possible. Management’s Response – In 2023, the Organization implemented a new accounting information system at Adoray, as well as reviewing job responsibilities and duties, to create opportunities for segregation of duties and separation of incompatible functions in the future. Management plans to continue this process and review and provide additional updates in 2024.
Finding 2023-001
Segregation of Duties Condition – Segregation of duties provides stronger internal controls by not allowing one person to have control and responsibility over a complete accounting system (cash receipts, cash disbursements, payroll and purchasing, receiving, and accounts payable). It was noted that certain individuals in the Organization have significant responsibilities or access within the information systems to many of the financial accounting cycles such as accounts payable, payroll, financial accounting, and reporting, which creates a concern over segregation of duties. This was particularly noted within the Adoray organization, where due to the small staff size in the accounting and financial services areas, a lack of segregation of duties exists. Criteria – The lack of proper segregation of duties is considered an internal control weakness. Effect – As a result of not having a sufficient number of individuals in the accounting department to segregate duties, risk of misappropriation and fraudulent transactions in financial reporting increases. Recommendation – We encourage the Board of Directors and management to strengthen internal controls or implement mitigating controls where possible. Management’s Response – In 2023, the Organization implemented a new accounting information system at Adoray, as well as reviewing job responsibilities and duties, to create opportunities for segregation of duties and separation of incompatible functions in the future. Management plans to continue this process and review and provide additional updates in 2024.
Finding 2023-001
Segregation of Duties Condition – Segregation of duties provides stronger internal controls by not allowing one person to have control and responsibility over a complete accounting system (cash receipts, cash disbursements, payroll and purchasing, receiving, and accounts payable). It was noted that certain individuals in the Organization have significant responsibilities or access within the information systems to many of the financial accounting cycles such as accounts payable, payroll, financial accounting, and reporting, which creates a concern over segregation of duties. This was particularly noted within the Adoray organization, where due to the small staff size in the accounting and financial services areas, a lack of segregation of duties exists. Criteria – The lack of proper segregation of duties is considered an internal control weakness. Effect – As a result of not having a sufficient number of individuals in the accounting department to segregate duties, risk of misappropriation and fraudulent transactions in financial reporting increases. Recommendation – We encourage the Board of Directors and management to strengthen internal controls or implement mitigating controls where possible. Management’s Response – In 2023, the Organization implemented a new accounting information system at Adoray, as well as reviewing job responsibilities and duties, to create opportunities for segregation of duties and separation of incompatible functions in the future. Management plans to continue this process and review and provide additional updates in 2024.
Finding 2023-001
Segregation of Duties Condition – Segregation of duties provides stronger internal controls by not allowing one person to have control and responsibility over a complete accounting system (cash receipts, cash disbursements, payroll and purchasing, receiving, and accounts payable). It was noted that certain individuals in the Organization have significant responsibilities or access within the information systems to many of the financial accounting cycles such as accounts payable, payroll, financial accounting, and reporting, which creates a concern over segregation of duties. This was particularly noted within the Adoray organization, where due to the small staff size in the accounting and financial services areas, a lack of segregation of duties exists. Criteria – The lack of proper segregation of duties is considered an internal control weakness. Effect – As a result of not having a sufficient number of individuals in the accounting department to segregate duties, risk of misappropriation and fraudulent transactions in financial reporting increases. Recommendation – We encourage the Board of Directors and management to strengthen internal controls or implement mitigating controls where possible. Management’s Response – In 2023, the Organization implemented a new accounting information system at Adoray, as well as reviewing job responsibilities and duties, to create opportunities for segregation of duties and separation of incompatible functions in the future. Management plans to continue this process and review and provide additional updates in 2024.
Finding 2023-001
Segregation of Duties Condition – Segregation of duties provides stronger internal controls by not allowing one person to have control and responsibility over a complete accounting system (cash receipts, cash disbursements, payroll and purchasing, receiving, and accounts payable). It was noted that certain individuals in the Organization have significant responsibilities or access within the information systems to many of the financial accounting cycles such as accounts payable, payroll, financial accounting, and reporting, which creates a concern over segregation of duties. This was particularly noted within the Adoray organization, where due to the small staff size in the accounting and financial services areas, a lack of segregation of duties exists. Criteria – The lack of proper segregation of duties is considered an internal control weakness. Effect – As a result of not having a sufficient number of individuals in the accounting department to segregate duties, risk of misappropriation and fraudulent transactions in financial reporting increases. Recommendation – We encourage the Board of Directors and management to strengthen internal controls or implement mitigating controls where possible. Management’s Response – In 2023, the Organization implemented a new accounting information system at Adoray, as well as reviewing job responsibilities and duties, to create opportunities for segregation of duties and separation of incompatible functions in the future. Management plans to continue this process and review and provide additional updates in 2024.
Finding 2023-001
Segregation of Duties Condition – Segregation of duties provides stronger internal controls by not allowing one person to have control and responsibility over a complete accounting system (cash receipts, cash disbursements, payroll and purchasing, receiving, and accounts payable). It was noted that certain individuals in the Organization have significant responsibilities or access within the information systems to many of the financial accounting cycles such as accounts payable, payroll, financial accounting, and reporting, which creates a concern over segregation of duties. This was particularly noted within the Adoray organization, where due to the small staff size in the accounting and financial services areas, a lack of segregation of duties exists. Criteria – The lack of proper segregation of duties is considered an internal control weakness. Effect – As a result of not having a sufficient number of individuals in the accounting department to segregate duties, risk of misappropriation and fraudulent transactions in financial reporting increases. Recommendation – We encourage the Board of Directors and management to strengthen internal controls or implement mitigating controls where possible. Management’s Response – In 2023, the Organization implemented a new accounting information system at Adoray, as well as reviewing job responsibilities and duties, to create opportunities for segregation of duties and separation of incompatible functions in the future. Management plans to continue this process and review and provide additional updates in 2024.
Finding 2023-001
Segregation of Duties Condition – Segregation of duties provides stronger internal controls by not allowing one person to have control and responsibility over a complete accounting system (cash receipts, cash disbursements, payroll and purchasing, receiving, and accounts payable). It was noted that certain individuals in the Organization have significant responsibilities or access within the information systems to many of the financial accounting cycles such as accounts payable, payroll, financial accounting, and reporting, which creates a concern over segregation of duties. This was particularly noted within the Adoray organization, where due to the small staff size in the accounting and financial services areas, a lack of segregation of duties exists. Criteria – The lack of proper segregation of duties is considered an internal control weakness. Effect – As a result of not having a sufficient number of individuals in the accounting department to segregate duties, risk of misappropriation and fraudulent transactions in financial reporting increases. Recommendation – We encourage the Board of Directors and management to strengthen internal controls or implement mitigating controls where possible. Management’s Response – In 2023, the Organization implemented a new accounting information system at Adoray, as well as reviewing job responsibilities and duties, to create opportunities for segregation of duties and separation of incompatible functions in the future. Management plans to continue this process and review and provide additional updates in 2024.
Finding 2023-001
Segregation of Duties Condition – Segregation of duties provides stronger internal controls by not allowing one person to have control and responsibility over a complete accounting system (cash receipts, cash disbursements, payroll and purchasing, receiving, and accounts payable). It was noted that certain individuals in the Organization have significant responsibilities or access within the information systems to many of the financial accounting cycles such as accounts payable, payroll, financial accounting, and reporting, which creates a concern over segregation of duties. This was particularly noted within the Adoray organization, where due to the small staff size in the accounting and financial services areas, a lack of segregation of duties exists. Criteria – The lack of proper segregation of duties is considered an internal control weakness. Effect – As a result of not having a sufficient number of individuals in the accounting department to segregate duties, risk of misappropriation and fraudulent transactions in financial reporting increases. Recommendation – We encourage the Board of Directors and management to strengthen internal controls or implement mitigating controls where possible. Management’s Response – In 2023, the Organization implemented a new accounting information system at Adoray, as well as reviewing job responsibilities and duties, to create opportunities for segregation of duties and separation of incompatible functions in the future. Management plans to continue this process and review and provide additional updates in 2024.