2022-004 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Reporting Significant Deficiency 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. Within Section 5 of the Loan Resolution Security Agreements dated January 20, 2009 and September 30, 2014, annual audited financial statements are required to be submitted to USDA. Condition: The audited financial statements were submitted to USDA prior to review and approval from the Board of Directors. Cause: There was a lapse in the internal control process ensuring audited financial statements are reviewed and approved prior to submission to USDA. Effect: Revision to the final reports could occur upon review and approval from the Board of Directors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes Recommendation: We recommend management to review policies and procedures ensuring audited financial statements are approved prior to providing to the federal agency. Views of Responsible Officials: Management agrees with the finding
2022-005 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Special Tests and Provisions Material Weakness in Internal Control Over Compliance and 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. Section 4 of the Loan Resolution Security Agreements dated January 20, 2009 and September 30, 2014, states the Hospital must set aside a reserve amount which may be established as a bookkeeping account or as a separate bank account. Funds may be deposited in institutions insured by the state or federal government or invested in marketable securities backed by the full faith and credit of the United States. Additionally, under Section 5 (h) within the Loan Resolution Security Agreements, it states the Hospital will not borrow any money from any source without obtaining the prior written consent of the Government. Condition: The Hospital did set aside a reserve amount within a saving account; however, the funds were not segregated in a separate bookkeeping account or bank account. Additionally, the Hospital entered into three debt arrangements during the fiscal year with a financial institution without obtaining prior written consent from the agency. Cause: The Hospital did not have an internal control process in place to ensure a reserve amount was established as a separate bookkeeping account or bank account or that the agency was notified prior to entering debt arrangements. Effect: The Hospital could be in violation of the reserve amount requirements if management is not monitoring compliance. USDA approval was not provided prior to the Hospital entering into new debt arrangements. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend management transfer the required reserve amount to a separate bookkeeping account in the trial balance or establish a separate bank account and ensure the funds are deposited in institutions insured by the state or federal government or invested in marketable securities backed by the full faith and credit of the United States. We recommend management obtain USDA approval prior to entering new debt arrangements. Views of Responsible Officials: Management agrees with the finding.
2022-004 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Reporting Significant Deficiency 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. Within Section 5 of the Loan Resolution Security Agreements dated January 20, 2009 and September 30, 2014, annual audited financial statements are required to be submitted to USDA. Condition: The audited financial statements were submitted to USDA prior to review and approval from the Board of Directors. Cause: There was a lapse in the internal control process ensuring audited financial statements are reviewed and approved prior to submission to USDA. Effect: Revision to the final reports could occur upon review and approval from the Board of Directors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes Recommendation: We recommend management to review policies and procedures ensuring audited financial statements are approved prior to providing to the federal agency. Views of Responsible Officials: Management agrees with the finding
2022-005 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Special Tests and Provisions Material Weakness in Internal Control Over Compliance and 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. Section 4 of the Loan Resolution Security Agreements dated January 20, 2009 and September 30, 2014, states the Hospital must set aside a reserve amount which may be established as a bookkeeping account or as a separate bank account. Funds may be deposited in institutions insured by the state or federal government or invested in marketable securities backed by the full faith and credit of the United States. Additionally, under Section 5 (h) within the Loan Resolution Security Agreements, it states the Hospital will not borrow any money from any source without obtaining the prior written consent of the Government. Condition: The Hospital did set aside a reserve amount within a saving account; however, the funds were not segregated in a separate bookkeeping account or bank account. Additionally, the Hospital entered into three debt arrangements during the fiscal year with a financial institution without obtaining prior written consent from the agency. Cause: The Hospital did not have an internal control process in place to ensure a reserve amount was established as a separate bookkeeping account or bank account or that the agency was notified prior to entering debt arrangements. Effect: The Hospital could be in violation of the reserve amount requirements if management is not monitoring compliance. USDA approval was not provided prior to the Hospital entering into new debt arrangements. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend management transfer the required reserve amount to a separate bookkeeping account in the trial balance or establish a separate bank account and ensure the funds are deposited in institutions insured by the state or federal government or invested in marketable securities backed by the full faith and credit of the United States. We recommend management obtain USDA approval prior to entering new debt arrangements. Views of Responsible Officials: Management agrees with the finding.
2022-004 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Reporting Significant Deficiency 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. Within Section 5 of the Loan Resolution Security Agreements dated January 20, 2009 and September 30, 2014, annual audited financial statements are required to be submitted to USDA. Condition: The audited financial statements were submitted to USDA prior to review and approval from the Board of Directors. Cause: There was a lapse in the internal control process ensuring audited financial statements are reviewed and approved prior to submission to USDA. Effect: Revision to the final reports could occur upon review and approval from the Board of Directors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes Recommendation: We recommend management to review policies and procedures ensuring audited financial statements are approved prior to providing to the federal agency. Views of Responsible Officials: Management agrees with the finding
2022-005 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Special Tests and Provisions Material Weakness in Internal Control Over Compliance and 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. Section 4 of the Loan Resolution Security Agreements dated January 20, 2009 and September 30, 2014, states the Hospital must set aside a reserve amount which may be established as a bookkeeping account or as a separate bank account. Funds may be deposited in institutions insured by the state or federal government or invested in marketable securities backed by the full faith and credit of the United States. Additionally, under Section 5 (h) within the Loan Resolution Security Agreements, it states the Hospital will not borrow any money from any source without obtaining the prior written consent of the Government. Condition: The Hospital did set aside a reserve amount within a saving account; however, the funds were not segregated in a separate bookkeeping account or bank account. Additionally, the Hospital entered into three debt arrangements during the fiscal year with a financial institution without obtaining prior written consent from the agency. Cause: The Hospital did not have an internal control process in place to ensure a reserve amount was established as a separate bookkeeping account or bank account or that the agency was notified prior to entering debt arrangements. Effect: The Hospital could be in violation of the reserve amount requirements if management is not monitoring compliance. USDA approval was not provided prior to the Hospital entering into new debt arrangements. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend management transfer the required reserve amount to a separate bookkeeping account in the trial balance or establish a separate bank account and ensure the funds are deposited in institutions insured by the state or federal government or invested in marketable securities backed by the full faith and credit of the United States. We recommend management obtain USDA approval prior to entering new debt arrangements. Views of Responsible Officials: Management agrees with the finding.
2022-004 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Reporting Significant Deficiency 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. Within Section 5 of the Loan Resolution Security Agreements dated January 20, 2009 and September 30, 2014, annual audited financial statements are required to be submitted to USDA. Condition: The audited financial statements were submitted to USDA prior to review and approval from the Board of Directors. Cause: There was a lapse in the internal control process ensuring audited financial statements are reviewed and approved prior to submission to USDA. Effect: Revision to the final reports could occur upon review and approval from the Board of Directors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes Recommendation: We recommend management to review policies and procedures ensuring audited financial statements are approved prior to providing to the federal agency. Views of Responsible Officials: Management agrees with the finding
2022-005 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Special Tests and Provisions Material Weakness in Internal Control Over Compliance and 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. Section 4 of the Loan Resolution Security Agreements dated January 20, 2009 and September 30, 2014, states the Hospital must set aside a reserve amount which may be established as a bookkeeping account or as a separate bank account. Funds may be deposited in institutions insured by the state or federal government or invested in marketable securities backed by the full faith and credit of the United States. Additionally, under Section 5 (h) within the Loan Resolution Security Agreements, it states the Hospital will not borrow any money from any source without obtaining the prior written consent of the Government. Condition: The Hospital did set aside a reserve amount within a saving account; however, the funds were not segregated in a separate bookkeeping account or bank account. Additionally, the Hospital entered into three debt arrangements during the fiscal year with a financial institution without obtaining prior written consent from the agency. Cause: The Hospital did not have an internal control process in place to ensure a reserve amount was established as a separate bookkeeping account or bank account or that the agency was notified prior to entering debt arrangements. Effect: The Hospital could be in violation of the reserve amount requirements if management is not monitoring compliance. USDA approval was not provided prior to the Hospital entering into new debt arrangements. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend management transfer the required reserve amount to a separate bookkeeping account in the trial balance or establish a separate bank account and ensure the funds are deposited in institutions insured by the state or federal government or invested in marketable securities backed by the full faith and credit of the United States. We recommend management obtain USDA approval prior to entering new debt arrangements. Views of Responsible Officials: Management agrees with the finding.
2022-004 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Reporting Significant Deficiency 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. Within Section 5 of the Loan Resolution Security Agreements dated January 20, 2009 and September 30, 2014, annual audited financial statements are required to be submitted to USDA. Condition: The audited financial statements were submitted to USDA prior to review and approval from the Board of Directors. Cause: There was a lapse in the internal control process ensuring audited financial statements are reviewed and approved prior to submission to USDA. Effect: Revision to the final reports could occur upon review and approval from the Board of Directors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes Recommendation: We recommend management to review policies and procedures ensuring audited financial statements are approved prior to providing to the federal agency. Views of Responsible Officials: Management agrees with the finding
2022-005 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Special Tests and Provisions Material Weakness in Internal Control Over Compliance and 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. Section 4 of the Loan Resolution Security Agreements dated January 20, 2009 and September 30, 2014, states the Hospital must set aside a reserve amount which may be established as a bookkeeping account or as a separate bank account. Funds may be deposited in institutions insured by the state or federal government or invested in marketable securities backed by the full faith and credit of the United States. Additionally, under Section 5 (h) within the Loan Resolution Security Agreements, it states the Hospital will not borrow any money from any source without obtaining the prior written consent of the Government. Condition: The Hospital did set aside a reserve amount within a saving account; however, the funds were not segregated in a separate bookkeeping account or bank account. Additionally, the Hospital entered into three debt arrangements during the fiscal year with a financial institution without obtaining prior written consent from the agency. Cause: The Hospital did not have an internal control process in place to ensure a reserve amount was established as a separate bookkeeping account or bank account or that the agency was notified prior to entering debt arrangements. Effect: The Hospital could be in violation of the reserve amount requirements if management is not monitoring compliance. USDA approval was not provided prior to the Hospital entering into new debt arrangements. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend management transfer the required reserve amount to a separate bookkeeping account in the trial balance or establish a separate bank account and ensure the funds are deposited in institutions insured by the state or federal government or invested in marketable securities backed by the full faith and credit of the United States. We recommend management obtain USDA approval prior to entering new debt arrangements. Views of Responsible Officials: Management agrees with the finding.
2022-004 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Reporting Significant Deficiency 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. Within Section 5 of the Loan Resolution Security Agreements dated January 20, 2009 and September 30, 2014, annual audited financial statements are required to be submitted to USDA. Condition: The audited financial statements were submitted to USDA prior to review and approval from the Board of Directors. Cause: There was a lapse in the internal control process ensuring audited financial statements are reviewed and approved prior to submission to USDA. Effect: Revision to the final reports could occur upon review and approval from the Board of Directors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes Recommendation: We recommend management to review policies and procedures ensuring audited financial statements are approved prior to providing to the federal agency. Views of Responsible Officials: Management agrees with the finding
2022-005 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Special Tests and Provisions Material Weakness in Internal Control Over Compliance and 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. Section 4 of the Loan Resolution Security Agreements dated January 20, 2009 and September 30, 2014, states the Hospital must set aside a reserve amount which may be established as a bookkeeping account or as a separate bank account. Funds may be deposited in institutions insured by the state or federal government or invested in marketable securities backed by the full faith and credit of the United States. Additionally, under Section 5 (h) within the Loan Resolution Security Agreements, it states the Hospital will not borrow any money from any source without obtaining the prior written consent of the Government. Condition: The Hospital did set aside a reserve amount within a saving account; however, the funds were not segregated in a separate bookkeeping account or bank account. Additionally, the Hospital entered into three debt arrangements during the fiscal year with a financial institution without obtaining prior written consent from the agency. Cause: The Hospital did not have an internal control process in place to ensure a reserve amount was established as a separate bookkeeping account or bank account or that the agency was notified prior to entering debt arrangements. Effect: The Hospital could be in violation of the reserve amount requirements if management is not monitoring compliance. USDA approval was not provided prior to the Hospital entering into new debt arrangements. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend management transfer the required reserve amount to a separate bookkeeping account in the trial balance or establish a separate bank account and ensure the funds are deposited in institutions insured by the state or federal government or invested in marketable securities backed by the full faith and credit of the United States. We recommend management obtain USDA approval prior to entering new debt arrangements. Views of Responsible Officials: Management agrees with the finding.