FAC Explorer

Audit 16400

FY End
2022-09-30
Total Expended
$159.52M
Findings
2
Programs
6
Organization: Southwell Obligated Group (GA)
Year: 2022 Accepted: 2023-06-29
Auditor: Draffin & Tucker LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
12223 2022-001 Significant Deficiency - L
588665 2022-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $148.73M Yes 1
93.498 Covid-19 - Provider Relief Fund - Period 2 $9.20M Yes 0
93.461 Covid-19 - Claims Reimbursement for the Uninsured Program $1.06M Yes 0
93.697 Covid-19 - Testing for Rural Health Clinics $500,000 - 0
93.889 Covid-19 - National Bioterrorism Hospital Preparedness Program $16,471 - 0
21.019 Covid-19 - Coronavirus Relief Fund Gerogiacares Nursing Home Grants $11,442 - 0

Contacts

Name Title Type
M8LCL7GKMHV6 Troy Brooks Auditee
2293533804 Jimmie Richter Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Tift County Hospital Authority (Authority), Southwell Inc. (Southwell) and Tift Regional Health System, Inc. (System) (collectively Southwell Obligated Group) under programs of the federal government for the year ended September 30, 2022. 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Southwell Obligated Group, it is not intended to and does not present the financial position, results of operations, changes in net assets, or cash flows of Southwell Obligated Group. Expenditures reported on the Schedule are reported on the accrual basis of accounting which is consistent with the preparation of Southwell Obligated Group's combined special-purpose financial statements. 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. The Provider Relief Fund (PRF) amount reported on the Schedule represents the amount reported to the U.S. Department of Health and Human Services HRSA Reporting Portal for Period 2 as specified in the OMB Compliance Supplement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Federal expenditures under loan programs include any new loans made during the year and loans outstanding at the beginning of the year for which there are continuing compliance requirements. There were no new loans for the year ended September 30, 2022. The balance of the loan outstanding as of September 30, 2022 is $145,613,154.
Title: Non-Cash Awards Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Tift County Hospital Authority (Authority), Southwell Inc. (Southwell) and Tift Regional Health System, Inc. (System) (collectively Southwell Obligated Group) under programs of the federal government for the year ended September 30, 2022. 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Southwell Obligated Group, it is not intended to and does not present the financial position, results of operations, changes in net assets, or cash flows of Southwell Obligated Group. Expenditures reported on the Schedule are reported on the accrual basis of accounting which is consistent with the preparation of Southwell Obligated Group's combined special-purpose financial statements. 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. The Provider Relief Fund (PRF) amount reported on the Schedule represents the amount reported to the U.S. Department of Health and Human Services HRSA Reporting Portal for Period 2 as specified in the OMB Compliance Supplement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Southwell Obligated Group did not have any non-cash awards during the fiscal year.
Title: Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Tift County Hospital Authority (Authority), Southwell Inc. (Southwell) and Tift Regional Health System, Inc. (System) (collectively Southwell Obligated Group) under programs of the federal government for the year ended September 30, 2022. 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Southwell Obligated Group, it is not intended to and does not present the financial position, results of operations, changes in net assets, or cash flows of Southwell Obligated Group. Expenditures reported on the Schedule are reported on the accrual basis of accounting which is consistent with the preparation of Southwell Obligated Group's combined special-purpose financial statements. 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. The Provider Relief Fund (PRF) amount reported on the Schedule represents the amount reported to the U.S. Department of Health and Human Services HRSA Reporting Portal for Period 2 as specified in the OMB Compliance Supplement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. There were no awards passed through to subrecipients.

Finding Details

Finding 2022-001
Condition: Southwell Obligated Group did not timely submit its annual budget, projected cash flow, quarterly financial statements, and audited financial statements to the USDA. Criteria: Southwell Obligated Group is responsible for reporting to the USDA throughout the life of the loan, as specifically required within Southwell Obligated Group's applicable agreement, via the RD 442-2, Statement of Budget, Income, and Equity report or other acceptable report. Cause: These reports are required to be submitted, as specified in the applicable loan agreement; however, management did not maintain a list of required reports to be submitted nor was there a process in place to ensure timely filing. Context: The reports were never specifically requested throughout the year by Southwell Obligated Group's USDA representative, nor was Southwell Obligated Group notified of its tardy submission at any point during the fiscal year. The audited financial statements are available to the federal agency through Southwell Obligated Group's website. Effect: Southwell Obligated Group did not follow the guidelines as laid out in the respective loan agreement for its reporting requirements. Questioned Costs: Not applicable. Recommendations: Southwell Obligated Group should continue to improve its understanding of the reporting requirements as specified in the applicable loan document and create a process to ensure reports are submitted in a timely manner.
Finding 2022-001
Condition: Southwell Obligated Group did not timely submit its annual budget, projected cash flow, quarterly financial statements, and audited financial statements to the USDA. Criteria: Southwell Obligated Group is responsible for reporting to the USDA throughout the life of the loan, as specifically required within Southwell Obligated Group's applicable agreement, via the RD 442-2, Statement of Budget, Income, and Equity report or other acceptable report. Cause: These reports are required to be submitted, as specified in the applicable loan agreement; however, management did not maintain a list of required reports to be submitted nor was there a process in place to ensure timely filing. Context: The reports were never specifically requested throughout the year by Southwell Obligated Group's USDA representative, nor was Southwell Obligated Group notified of its tardy submission at any point during the fiscal year. The audited financial statements are available to the federal agency through Southwell Obligated Group's website. Effect: Southwell Obligated Group did not follow the guidelines as laid out in the respective loan agreement for its reporting requirements. Questioned Costs: Not applicable. Recommendations: Southwell Obligated Group should continue to improve its understanding of the reporting requirements as specified in the applicable loan document and create a process to ensure reports are submitted in a timely manner.