FAC Explorer

Audit 17250

FY End
2022-06-30
Total Expended
$6.22M
Findings
4
Programs
4
Organization: Platte Health Center (SD)
Year: 2022 Accepted: 2022-12-28
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
12542 2022-003 Material Weakness - N
12543 2022-003 Material Weakness - N
588984 2022-003 Material Weakness - N
588985 2022-003 Material Weakness - N

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $2.07M Yes 1
93.697 Covid-19 Testing for Rural Health Clinics $214,524 - 0
93.498 Provider Relief Fund $109,616 - 0
93.301 Small Rural Hospital Improvement Grant Program $84,317 - 0

Contacts

Name Title Type
PWTLWEPNV5F6 Vicki Jensen Auditee
6053373364 Joy Feige Auditor
No contacts on file

Notes to SEFA

Title: Community Facilities Loans Accounting Policies: 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 Health Center does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. Expenditures reported in this schedule consist of the beginning of the year outstanding loan balance for the direct loan and 90% of the beginning of year outstanding loan balance for the guaranteed loan. There were no loan advances during the year ended June 30, 2022. The outstanding balances at June 30, 2022 were $3,648,763 for the direct USDA loan and $1,987,127 for the bank loan, of which USDA has guaranteed 90% of the loan balance.
Title: Basis of Presentation Accounting Policies: 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 Health Center does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Platte Community Memorial Hospital, Inc. d/b/a Platte Health Center, Inc. (Health Center) under programs of the federal government for the year ended June 30, 2022. 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 Health Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Health Center.
Title: Provider Relief Funds Accounting Policies: 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 Health Center does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. The Health Center received amounts from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund and American Rescue Plan Rural Distribution (PRF) program (Federal Financial Assistance Listing/CFDA #93.498) in the amount of $4,310,596 as of June 30, 2022. The PRF expenditures are not recognized on the schedule until the expenditures are included in the reporting to HHS as required under the PRF program.The following summarizes the Provider Relief Funds and the timing of when the amounts were recognized in the financial statements.(see table in report)

Finding Details

Finding 2022-003
2022-003 Department of Agriculture Federal Financial Assistance Listing/CFDA #10.766 Communities Facilities and Loans Grants Cluster Special Test and Provisions Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. The commitment letter for the term load with the bank requires debt service coverage ratio and working capital calculations to be calculated yearly using audited financial statements Condition: Management does not have controls in place to ensure compliance with the requirements as they have not been calculating or monitoring the required ratios internally. Cause: The Health Center was relying on the annual calculations performed by the audit team. Effect: The Health Center could be in violation of the debt coverage requirements if management is not monitoring compliance. Questioned Costs: None reported Context/Sampling: Sampling was not used Repeat Finding from Prior Year: No Recommendation: We recommend management implement process and controls in place to monitor the debt service coverage ratio and working capital calculations as a part of their year-end close process to ensure all covenants of the loan are met. Response: Management agrees with the finding.
Finding 2022-003
2022-003 Department of Agriculture Federal Financial Assistance Listing/CFDA #10.766 Communities Facilities and Loans Grants Cluster Special Test and Provisions Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. The commitment letter for the term load with the bank requires debt service coverage ratio and working capital calculations to be calculated yearly using audited financial statements Condition: Management does not have controls in place to ensure compliance with the requirements as they have not been calculating or monitoring the required ratios internally. Cause: The Health Center was relying on the annual calculations performed by the audit team. Effect: The Health Center could be in violation of the debt coverage requirements if management is not monitoring compliance. Questioned Costs: None reported Context/Sampling: Sampling was not used Repeat Finding from Prior Year: No Recommendation: We recommend management implement process and controls in place to monitor the debt service coverage ratio and working capital calculations as a part of their year-end close process to ensure all covenants of the loan are met. Response: Management agrees with the finding.
Finding 2022-003
2022-003 Department of Agriculture Federal Financial Assistance Listing/CFDA #10.766 Communities Facilities and Loans Grants Cluster Special Test and Provisions Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. The commitment letter for the term load with the bank requires debt service coverage ratio and working capital calculations to be calculated yearly using audited financial statements Condition: Management does not have controls in place to ensure compliance with the requirements as they have not been calculating or monitoring the required ratios internally. Cause: The Health Center was relying on the annual calculations performed by the audit team. Effect: The Health Center could be in violation of the debt coverage requirements if management is not monitoring compliance. Questioned Costs: None reported Context/Sampling: Sampling was not used Repeat Finding from Prior Year: No Recommendation: We recommend management implement process and controls in place to monitor the debt service coverage ratio and working capital calculations as a part of their year-end close process to ensure all covenants of the loan are met. Response: Management agrees with the finding.
Finding 2022-003
2022-003 Department of Agriculture Federal Financial Assistance Listing/CFDA #10.766 Communities Facilities and Loans Grants Cluster Special Test and Provisions Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. The commitment letter for the term load with the bank requires debt service coverage ratio and working capital calculations to be calculated yearly using audited financial statements Condition: Management does not have controls in place to ensure compliance with the requirements as they have not been calculating or monitoring the required ratios internally. Cause: The Health Center was relying on the annual calculations performed by the audit team. Effect: The Health Center could be in violation of the debt coverage requirements if management is not monitoring compliance. Questioned Costs: None reported Context/Sampling: Sampling was not used Repeat Finding from Prior Year: No Recommendation: We recommend management implement process and controls in place to monitor the debt service coverage ratio and working capital calculations as a part of their year-end close process to ensure all covenants of the loan are met. Response: Management agrees with the finding.