FAC Explorer

Audit 309848

FY End
2023-12-31
Total Expended
$8.58M
Findings
2
Programs
3
Organization: East Phillips CO Hospital Dist Dba Melissa Memorial Hospital (CO)
Year: 2023 Accepted: 2024-06-25
Auditor: Dza PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
401928 2023-002 Significant Deficiency - LN
978370 2023-002 Significant Deficiency - LN

Programs

ALN Program Spent Major Findings
14.128 Mortgage Insurance_hospitals $8.27M Yes 1
93.155 Rural Health Research Centers $156,427 - 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $153,506 - 0

Contacts

Name Title Type
JCKQTHSMDVB3 Angela St. John Auditee
9708542241 Luke Zarecor 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. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of East Phillips County Hospital District doing business as Melissa Memorial Hospital (the District) under programs of the federal government for the year ended December 31, 2023. 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 assets, or cash flows of the District.
Title: 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. De Minimis Rate Used: N Rate Explanation: The District has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. Nonmonetary assistance in the form of a loan guarantee is included in the accompanying schedule of expenditures of federal awards. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The related loan balance was $7,619,572 at December 31, 2023.

Finding Details

Finding 2023-002
2023-002 Policies and Procedures for Federal Awards Federal Agency U.S. Department of Housing and Urban Development Federal Assistance Listing Numbers 14.128 – Mortgage Insurance - Hospitals Criteria [ ] Compliance Finding [ X ] Significant Deficiency [ ] Material Weakness Recipients of federal awards should maintain written policies and procedures for the tracking and usage of federal awards that provide assurance that the entity is managing the federal award in compliance with federal statues, regulations, and conditions of the federal award. Condition The District did not have written policies and procedures to identify federal award requirements and ensure that the District was in compliance with these requirements. Context This finding appears to be a systemic problem. Cause The District did not have an internal control process in place to ensure continued compliance with the federal award. Effect The lack of policies increases the risk that noncompliance may not be corrected in a timely manner. Recommendation We recommend the District implement policies and procedures for the tracking and usage of federal awards that conform to federal regulations and compliance requirements. Views of responsible officials and planned corrective actions Management is in agreement with the finding.
Finding 2023-002
2023-002 Policies and Procedures for Federal Awards Federal Agency U.S. Department of Housing and Urban Development Federal Assistance Listing Numbers 14.128 – Mortgage Insurance - Hospitals Criteria [ ] Compliance Finding [ X ] Significant Deficiency [ ] Material Weakness Recipients of federal awards should maintain written policies and procedures for the tracking and usage of federal awards that provide assurance that the entity is managing the federal award in compliance with federal statues, regulations, and conditions of the federal award. Condition The District did not have written policies and procedures to identify federal award requirements and ensure that the District was in compliance with these requirements. Context This finding appears to be a systemic problem. Cause The District did not have an internal control process in place to ensure continued compliance with the federal award. Effect The lack of policies increases the risk that noncompliance may not be corrected in a timely manner. Recommendation We recommend the District implement policies and procedures for the tracking and usage of federal awards that conform to federal regulations and compliance requirements. Views of responsible officials and planned corrective actions Management is in agreement with the finding.