FAC Explorer

Audit 319668

FY End
2023-11-30
Total Expended
$998,025
Findings
2
Programs
4
Organization: Hospital Authority of Liberty County (GA)
Year: 2023 Accepted: 2024-09-16
Auditor: Draffin & Tucker LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
496931 2023-001 Material Weakness Yes LN
1073373 2023-001 Material Weakness Yes LN

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $501,498 Yes 1
93.498 Provider Relief Fund $479,527 - 0
93.301 Small Rural Hospital Improvement Grant Program $12,000 - 0
93.241 State Rural Hospital Flexibility Program $5,000 - 0

Contacts

Name Title Type
FB4MLM61VS27 Derek Rozier Auditee
9123699400 Bubba Joiner Auditor
No contacts on file

Notes to SEFA

Accounting Policies: 1. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of the Hospital Authority of Liberty County (Authority) under programs of the federal government for the year ended November 30, 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 Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority. 2. Expenditures reported on the Schedule are reported on the accrual basis of accounting which is consistent with the preparation of the Authority’s financial statements. 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 Provider Relief Fund (PRF) amount reported on the Schedule represents the amount reported to the U.S. Department of Health and Human Services HRSA Reporting Portal for Period 4 as specified in the OMB Compliance Supplement. The Authority did not receive any Period 5 PRF payments. 3. The Authority did not have any non-cash awards during the fiscal year. 4. There were no awards passed through to subrecipients. 5. The Authority has elected to not use the 10% de minimis indirect cost rate under the Uniform Guidance. 6. Federal expenditures under loan programs include any new loans made during the year and loans outstanding at the beginning of the year for which there are continuing compliance requirements. There were no new loans for the year ended November 30, 2023. The balance of the loan outstanding as of November 30, 2023 is $486,128. De Minimis Rate Used: N Rate Explanation: The auditee elected to not use the 10% de minimis indirect cost rate.

Finding Details

Finding 2023-001
2023-001 – Material Weakness - Noncompliance (Repeat finding 2022-001) Federal agency: U.S. Department of Agriculture (USDA): Rural Development Federal program title: Community Facilities Loans and Grants Assistance Listing No.: 10.766 Condition: The Authority did not have a separate USDA reserve bank account in place. Criteria: The Authority is responsible for creating a separate USDA reserve bank account and required to submit an annual deposit equivalent to ten percent of the amount needed to pay the annual installment of principal and interest on the note. Cause: These deposits are required to be submitted, as specified in the applicable loan agreement, however, management did not make the annual deposits nor was there a process in place to ensure timely deposits. Context: The bank statement was never specifically requested throughout the year by the Authority’s USDA representative, nor was the Authority notified of its tardy submission at any point during the fiscal year. Effect and questioned costs: The Authority did not create a loan reserve account of approximately $33,984 as laid out in the respective loan agreement for its reporting requirements. Recommendation: We recommend the Authority should continue to improve its understanding of the reporting requirements as specified in the applicable loan document and create a process to ensure all USDA requirements are met. Views of Responsible Officials and Planned Corrective Actions: The Authority agrees with this finding. See management’s corrective action plan.
Finding 2023-001
2023-001 – Material Weakness - Noncompliance (Repeat finding 2022-001) Federal agency: U.S. Department of Agriculture (USDA): Rural Development Federal program title: Community Facilities Loans and Grants Assistance Listing No.: 10.766 Condition: The Authority did not have a separate USDA reserve bank account in place. Criteria: The Authority is responsible for creating a separate USDA reserve bank account and required to submit an annual deposit equivalent to ten percent of the amount needed to pay the annual installment of principal and interest on the note. Cause: These deposits are required to be submitted, as specified in the applicable loan agreement, however, management did not make the annual deposits nor was there a process in place to ensure timely deposits. Context: The bank statement was never specifically requested throughout the year by the Authority’s USDA representative, nor was the Authority notified of its tardy submission at any point during the fiscal year. Effect and questioned costs: The Authority did not create a loan reserve account of approximately $33,984 as laid out in the respective loan agreement for its reporting requirements. Recommendation: We recommend the Authority should continue to improve its understanding of the reporting requirements as specified in the applicable loan document and create a process to ensure all USDA requirements are met. Views of Responsible Officials and Planned Corrective Actions: The Authority agrees with this finding. See management’s corrective action plan.