FAC Explorer

Audit 17054

FY End
2022-12-31
Total Expended
$1.51M
Findings
6
Programs
3
Organization: Battle Ground Healthcare (WA)
Year: 2022 Accepted: 2023-09-21
Auditor: McDonald Jacobs PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
12507 2022-002 Material Weakness Yes F
12508 2022-003 Significant Deficiency Yes B
12509 2022-002 Material Weakness Yes F
588949 2022-002 Material Weakness Yes F
588950 2022-003 Significant Deficiency Yes B
588951 2022-002 Material Weakness Yes F

Programs

ALN Program Spent Major Findings
14.218 Community Development Block Grants/entitlement Grants $1.09M Yes 2
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $404,850 Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $21,223 - 0

Contacts

Name Title Type
LF7YBHVHR363 Sue Neal Auditee
3606878941 Jessica Yoder Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes all federal grant activity of Battle Ground Healthcare under programs of the federal government for the year ended December 31, 2022. The information in this schedule is presented in accordance with the requirements of the 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 Battle Ground Healthcare, it is not intended to and does not present the financial position, changes in net assets or cash flows of Battle Ground Healthcare. De Minimis Rate Used: Y Rate Explanation: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Battle Ground Healthcare has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. COMMUNITY DEVELOPMENT BLOCK GRANTS/ENTITLEMENT GRANTS (14.218) - Balances outstanding at the end of the audit period were 1087043. COMMUNITY DEVELOPMENT BLOCK GRANTS/STATE'S PROGRAM AND NON-ENTITLEMENT GRANTS IN HAWAII (14.228) - Balances outstanding at the end of the audit period were 404850.

Finding Details

Finding 2022-002
Finding # 2022-002 (Repeat of 2021-002) Type: Material weakness over property records CFDA Number: 14.218/14.228 Community Development Block Grants/ Entitlement Grants Requirement: Equipment should be used in the program or project for which it was acquired, and all purchases of equipment and other capital assets with federal funds shall be approved, in advance and in writing, by the County. Condition/Context: Equipment capitalization approvals could not be substantiated, and property and equipment listings associated with federal funds were not reviewed. In addition, several adjustments were required to properly account for property and equipment. Cause: There are no formal policies for fixed asset capitalization and tracking method for federal funding source. Effect: Improper or inaccurate amounts could be paid or charged to contracts. Questioned Costs: None. Recommendation: We recommend developing appropriate controls to account for proper capitalization of fixed assets. Procedures should be put in place to ensure reviews are completed timely as well. Management Response: Management intends to develop a tracking mechanism and consider annual physical inventory of fixed assets.
Finding 2022-003
Finding # 2022-003 (Repeat of 2021-004) Type: Significant deficiency over allowable costs CFDA Number: 14.218/14.228 Community Development Block Grants/ Entitlement Grants Requirement: Responsibilities for preparing, reviewing, and submitting contract billings should be segregated. Condition/Context: Contract billings were prepared, reviewed, and submitted by the same person. Cause: Duties were not segregated for the contract billing cycle. Effect: Improper or inaccurate amounts could be charged to contracts. Questioned Costs: None. Recommendation: We recommend proper segregation of duties between the preparer and the reviewer. Procedures should be put in place to ensure reviews are completed timely. Management?s Response: Management will develop procedures to document individuals responsible for preparing and reviewing contract billings.
Finding 2022-002
Finding # 2022-002 (Repeat of 2021-002) Type: Material weakness over property records CFDA Number: 14.218/14.228 Community Development Block Grants/ Entitlement Grants Requirement: Equipment should be used in the program or project for which it was acquired, and all purchases of equipment and other capital assets with federal funds shall be approved, in advance and in writing, by the County. Condition/Context: Equipment capitalization approvals could not be substantiated, and property and equipment listings associated with federal funds were not reviewed. In addition, several adjustments were required to properly account for property and equipment. Cause: There are no formal policies for fixed asset capitalization and tracking method for federal funding source. Effect: Improper or inaccurate amounts could be paid or charged to contracts. Questioned Costs: None. Recommendation: We recommend developing appropriate controls to account for proper capitalization of fixed assets. Procedures should be put in place to ensure reviews are completed timely as well. Management Response: Management intends to develop a tracking mechanism and consider annual physical inventory of fixed assets.
Finding 2022-002
Finding # 2022-002 (Repeat of 2021-002) Type: Material weakness over property records CFDA Number: 14.218/14.228 Community Development Block Grants/ Entitlement Grants Requirement: Equipment should be used in the program or project for which it was acquired, and all purchases of equipment and other capital assets with federal funds shall be approved, in advance and in writing, by the County. Condition/Context: Equipment capitalization approvals could not be substantiated, and property and equipment listings associated with federal funds were not reviewed. In addition, several adjustments were required to properly account for property and equipment. Cause: There are no formal policies for fixed asset capitalization and tracking method for federal funding source. Effect: Improper or inaccurate amounts could be paid or charged to contracts. Questioned Costs: None. Recommendation: We recommend developing appropriate controls to account for proper capitalization of fixed assets. Procedures should be put in place to ensure reviews are completed timely as well. Management Response: Management intends to develop a tracking mechanism and consider annual physical inventory of fixed assets.
Finding 2022-003
Finding # 2022-003 (Repeat of 2021-004) Type: Significant deficiency over allowable costs CFDA Number: 14.218/14.228 Community Development Block Grants/ Entitlement Grants Requirement: Responsibilities for preparing, reviewing, and submitting contract billings should be segregated. Condition/Context: Contract billings were prepared, reviewed, and submitted by the same person. Cause: Duties were not segregated for the contract billing cycle. Effect: Improper or inaccurate amounts could be charged to contracts. Questioned Costs: None. Recommendation: We recommend proper segregation of duties between the preparer and the reviewer. Procedures should be put in place to ensure reviews are completed timely. Management?s Response: Management will develop procedures to document individuals responsible for preparing and reviewing contract billings.
Finding 2022-002
Finding # 2022-002 (Repeat of 2021-002) Type: Material weakness over property records CFDA Number: 14.218/14.228 Community Development Block Grants/ Entitlement Grants Requirement: Equipment should be used in the program or project for which it was acquired, and all purchases of equipment and other capital assets with federal funds shall be approved, in advance and in writing, by the County. Condition/Context: Equipment capitalization approvals could not be substantiated, and property and equipment listings associated with federal funds were not reviewed. In addition, several adjustments were required to properly account for property and equipment. Cause: There are no formal policies for fixed asset capitalization and tracking method for federal funding source. Effect: Improper or inaccurate amounts could be paid or charged to contracts. Questioned Costs: None. Recommendation: We recommend developing appropriate controls to account for proper capitalization of fixed assets. Procedures should be put in place to ensure reviews are completed timely as well. Management Response: Management intends to develop a tracking mechanism and consider annual physical inventory of fixed assets.