Audit 300913

Federal Agency United States Department of Agriculture Assistance Listing Number 10.766 – Community Facilities Loans and Grants Criteria [ ] Significant Deficiency [X] Material Weakness [X] Under the terms and conditions of the District’s loan with the United States Department of Agriculture, the District is required to submit an annual reporting package and certify the accuracy of all reports. Condition: The District’s certified RD Form 442-3 – Balance Sheet included in its 2022 annual reporting submission did not agree to supporting financial data. Context: This finding appears to be an isolated problem. Cause: The District’s internal controls over compliance did not include adequate controls over the review of data included in its annual reporting package. Effect: The District’s certified RD Form 442-3 – Balance Sheet included in its 2022 annual reporting submission was materially inaccurate. Recommendation: We recommend the District ensure all data included in its annual reporting package is reviewed to ensure it is accurate and agrees to supporting documentation. We also recommend the District update its policies and procedures to include specific policies and procedures related to the compliance with its USDA-guaranteed loan compliance requirements. Views of responsible officials and planned corrective actions: It is the view of Prairie County Hospital District management that the finding regarding the inaccuracy of RD Form 442-3 – Balance Sheet for fiscal year 2022 is correct. As the Chief Financial Officer who prepared the form is no longer with the facility, we cannot ascertain the reasons behind the mistake(s) that led to the inaccuracy. We feel corrective action, in part, was accomplished in the hiring of a new Chief Financial Officer who has more education and experience in accounting than the previous Chief Financial Officer had. Additionally, the Chief Executive Officer reviews all financial reports to create tighter internal controls over financial reporting.

Federal Agency United States Department of Agriculture Assistance Listing Number 10.766 – Community Facilities Loans and Grants Criteria [ ] Significant Deficiency [X] Material Weakness [X] Under the terms and conditions of the District’s loan with the United States Department of Agriculture, the District is required to submit an annual reporting package and certify the accuracy of all reports. Condition: The District’s certified RD Form 442-3 – Balance Sheet included in its 2022 annual reporting submission did not agree to supporting financial data. Context: This finding appears to be an isolated problem. Cause: The District’s internal controls over compliance did not include adequate controls over the review of data included in its annual reporting package. Effect: The District’s certified RD Form 442-3 – Balance Sheet included in its 2022 annual reporting submission was materially inaccurate. Recommendation: We recommend the District ensure all data included in its annual reporting package is reviewed to ensure it is accurate and agrees to supporting documentation. We also recommend the District update its policies and procedures to include specific policies and procedures related to the compliance with its USDA-guaranteed loan compliance requirements. Views of responsible officials and planned corrective actions: It is the view of Prairie County Hospital District management that the finding regarding the inaccuracy of RD Form 442-3 – Balance Sheet for fiscal year 2022 is correct. As the Chief Financial Officer who prepared the form is no longer with the facility, we cannot ascertain the reasons behind the mistake(s) that led to the inaccuracy. We feel corrective action, in part, was accomplished in the hiring of a new Chief Financial Officer who has more education and experience in accounting than the previous Chief Financial Officer had. Additionally, the Chief Executive Officer reviews all financial reports to create tighter internal controls over financial reporting.