FAC Explorer

Audit 18290

FY End
2022-12-31
Total Expended
$40.59M
Findings
2
Programs
6
Organization: Kremmling Memorial Hospital District (CO)
Year: 2022 Accepted: 2023-06-18
Auditor: Dingus Zarecor and Associates PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
23794 2022-001 Significant Deficiency - L
600236 2022-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $39.31M Yes 1
93.697 Covid-19 Testing for Rural Health Clinics $500,000 - 0
93.498 Provider Relief Fund $407,542 - 0
93.155 Rural Health Research Centers $224,675 - 0
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $145,348 - 0
93.301 Small Rural Hospital Improvement Grant Program $3,652 - 0

Contacts

Name Title Type
TDCKSWJGKXJ1 Emily Ebert Auditee
9707243179 Kami Matzek Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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 District has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Kremmling Memorial Hospital District doing business as Middle Park Health (the District) under programs of the federal government for the year ended December 31, 2022. Amounts reported for Federal Assistance Listing Number 93.498 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution are based on the December 31, 2022, Provider Relief Fund report. 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 the District, it is not intended to and does not present the financial position, changes in net position, or cash flows of the District.
Title: Direct Loans and Loan Guarantee Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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 District has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Direct loans and loan guarantee outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. Nonmonetary assistance in the form of a loan guarantee is included in the Schedule. The related loan balances of the direct loans at December 31, 2022 was $35,254,519. The loan guarantee balance at December 31, 2022, was $3,593,980, of which $3,234,582 (90 percent) is guaranteed.

Finding Details

Finding 2022-001
2022-001 Reporting and Written Policies and Procedures Program Information: Federal Agency United States Department of Agriculture Assistance Listing Number 10.766 ? Community Facilities Loans and Grants Cluster Criteria [X] Compliance Finding [X] Significant Deficiency [ ] Material Weakness Under the terms and conditions of the award, the recipient certifies it will provide quarterly financial information, the annual budget, and annual financial statements to the United States Department of Agriculture. The recipient also needs to maintain written policies and procedures for reporting required under the United States Department of Agriculture loan program and for reporting required under all federal awards received. Condition The District did not submit the quarterly reports or annual budget for 2022 to the United States Department of Agriculture. Context This finding appears to be a systemic problem. Cause The District did not have written policies or procedures in place for the required reporting. Effect The District is out of compliance with the terms and conditions of the award. Recommendation We recommend management implement written policies and procedures for reporting required under the United States Department of Agriculture loan program and all federal awards received as well as provide the required reports on a timely basis to all respective parties. View of responsible officials and planned corrective actions Middle Park Health (MPH) management agrees that quarterly financial reporting to USDA as required did not occur in 2022. Turnover in finance leadership during 2022 contributed to this oversight among other factors. At no point did MPH receive communication from USDA surrounding lack of compliance with this requirement. Upon discovering this weakness, MPH promptly implemented corrective action. Reminders have been set following the approval of each quarter?s financial statements by the Board of Directors to submit quarterly financial reports to USDA contacts. The first set of quarterly financials for 2023 were submitted to the USDA on April 28, 2023 and USDA confirmed receipt of these documents as well as confirming that the distribution list used by MPH for this submission was appropriate. MPH does not anticipate further noncompliance with this requirement. MPH will also develop written policies and procedures for the required reporting.
Finding 2022-001
2022-001 Reporting and Written Policies and Procedures Program Information: Federal Agency United States Department of Agriculture Assistance Listing Number 10.766 ? Community Facilities Loans and Grants Cluster Criteria [X] Compliance Finding [X] Significant Deficiency [ ] Material Weakness Under the terms and conditions of the award, the recipient certifies it will provide quarterly financial information, the annual budget, and annual financial statements to the United States Department of Agriculture. The recipient also needs to maintain written policies and procedures for reporting required under the United States Department of Agriculture loan program and for reporting required under all federal awards received. Condition The District did not submit the quarterly reports or annual budget for 2022 to the United States Department of Agriculture. Context This finding appears to be a systemic problem. Cause The District did not have written policies or procedures in place for the required reporting. Effect The District is out of compliance with the terms and conditions of the award. Recommendation We recommend management implement written policies and procedures for reporting required under the United States Department of Agriculture loan program and all federal awards received as well as provide the required reports on a timely basis to all respective parties. View of responsible officials and planned corrective actions Middle Park Health (MPH) management agrees that quarterly financial reporting to USDA as required did not occur in 2022. Turnover in finance leadership during 2022 contributed to this oversight among other factors. At no point did MPH receive communication from USDA surrounding lack of compliance with this requirement. Upon discovering this weakness, MPH promptly implemented corrective action. Reminders have been set following the approval of each quarter?s financial statements by the Board of Directors to submit quarterly financial reports to USDA contacts. The first set of quarterly financials for 2023 were submitted to the USDA on April 28, 2023 and USDA confirmed receipt of these documents as well as confirming that the distribution list used by MPH for this submission was appropriate. MPH does not anticipate further noncompliance with this requirement. MPH will also develop written policies and procedures for the required reporting.