FAC Explorer

Audit 18363

FY End
2022-09-30
Total Expended
$22.17M
Findings
4
Programs
5
Organization: Baraga County Memorial Hospital (MI)
Year: 2022 Accepted: 2023-04-06
Auditor: Wipfli LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
22731 2022-004 Significant Deficiency - P
22732 2022-005 Significant Deficiency - L
599173 2022-004 Significant Deficiency - P
599174 2022-005 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
14.128 Mortgage Insurance_hospitals $21.61M Yes 2
93.155 Rural Health Research Centers $257,853 - 0
93.498 Provider Relief Fund $189,997 - 0
93.697 Covid-19 Testing for Rural Health Clinics $100,000 - 0
93.301 Small Rural Hospital Improvement Grant Program $11,679 - 0

Contacts

Name Title Type
PGNCNX94VC91 Gail Jestila Auditee
9065243348 Corina Schoenke 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 2, due March 31, 2022, and reporting period 3, due September 30, 2022. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the UniformGuidance. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Baraga County Memorial Hospital and Baraga County Extended Care Corporation (collectively referred to as the Organization). The information in the 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 3: Loan Outstanding 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 2, due March 31, 2022, and reporting period 3, due September 30, 2022. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the UniformGuidance. The Organization had a loan balance outstanding of $20,749,572 at September 30, 2022. The loan balance at October 1, 2021, is included in the federal expenditures in the Schedule.
Title: NOTE 5: 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 2, due March 31, 2022, and reporting period 3, due September 30, 2022. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the UniformGuidance. The Organization passed no federal awards through to subrecipients.

Finding Details

Finding 2022-004
Repeat Finding: No; Program Name/CFDA Title: Mortgage Insurance for Hsopitals; CFDA Number: 14.128; Federal Agency: U.S. Department of Housing and Urban Development; Type of Finding: Noncompliance, Significant Deficiency; Compliance Requirement: Cash Disbursements; Condition: The Organization has amount due from affiliate of $49,386 over 90 days old as of September 30, 2022; Criteria: Payment for any service provided to an affiliate must be received within 90 days; Cause: The Hospital has an amount due from Bayside Village over 90 days old as of year-end due to cashflow issues at Bayside Village; Effect: The Organization is not incompliance with federal regulations and guidelines; Recommendation: Management should implement controls that provide reasonable assurance that payments for any service provided to an affiliate is received within 90 days; View of Responsible Officials: Management will implement a process to ensure that payments for any service provided to an affiliate are reimbursed within 90 days.
Finding 2022-005
Repeat Finding: No; Program Name/CFDA Title: Mortgage Insurance for Hospitals; CFDA Number: 14.128; Federal Agency: U.S. Department of Housing and Urban Development; Type of Finding: Noncompliance, Significant Deficiency; Compliance Requirement: Reporting. Condition: The Organization did not meet its financial reporting obligations under HUD requirements during the year; Criteria: The Organization is required to file quarterly interim financial statements within 40 days following the close of the reporting period; Context: During the audit, it was identified that the Organization did not file three of the required quarterly interim financial statements within 40 days following the close of the reporting period; Cause: The Organization did not have a review process in place to verify that the required reporting requirements were being met and were issued timely; Effect: The Organization is not in compliance with federal regulations and guidelines; Recommendation: It is recommended to develop proper controls around HUD-related reporting requirements. The Organization should file the quarterly interim financials in a timely manner.; View of Responsible Officials: The Organization will implement controls around HUD-related reporting requirements to ensure all quarterly interim financials are submitted within the required time period.
Finding 2022-004
Repeat Finding: No; Program Name/CFDA Title: Mortgage Insurance for Hsopitals; CFDA Number: 14.128; Federal Agency: U.S. Department of Housing and Urban Development; Type of Finding: Noncompliance, Significant Deficiency; Compliance Requirement: Cash Disbursements; Condition: The Organization has amount due from affiliate of $49,386 over 90 days old as of September 30, 2022; Criteria: Payment for any service provided to an affiliate must be received within 90 days; Cause: The Hospital has an amount due from Bayside Village over 90 days old as of year-end due to cashflow issues at Bayside Village; Effect: The Organization is not incompliance with federal regulations and guidelines; Recommendation: Management should implement controls that provide reasonable assurance that payments for any service provided to an affiliate is received within 90 days; View of Responsible Officials: Management will implement a process to ensure that payments for any service provided to an affiliate are reimbursed within 90 days.
Finding 2022-005
Repeat Finding: No; Program Name/CFDA Title: Mortgage Insurance for Hospitals; CFDA Number: 14.128; Federal Agency: U.S. Department of Housing and Urban Development; Type of Finding: Noncompliance, Significant Deficiency; Compliance Requirement: Reporting. Condition: The Organization did not meet its financial reporting obligations under HUD requirements during the year; Criteria: The Organization is required to file quarterly interim financial statements within 40 days following the close of the reporting period; Context: During the audit, it was identified that the Organization did not file three of the required quarterly interim financial statements within 40 days following the close of the reporting period; Cause: The Organization did not have a review process in place to verify that the required reporting requirements were being met and were issued timely; Effect: The Organization is not in compliance with federal regulations and guidelines; Recommendation: It is recommended to develop proper controls around HUD-related reporting requirements. The Organization should file the quarterly interim financials in a timely manner.; View of Responsible Officials: The Organization will implement controls around HUD-related reporting requirements to ensure all quarterly interim financials are submitted within the required time period.