FAC Explorer

Audit 321317

FY End
2022-12-31
Total Expended
$1.05M
Findings
10
Programs
4
Organization: Wishek Hospital Clinic Association D/b/a South Central Health (ND)
Year: 2022 Accepted: 2024-09-26
Auditor: Brady Martz & Associates PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
498564 2022-002 Material Weakness Yes L
498565 2022-002 Material Weakness Yes L
498566 2022-002 Material Weakness Yes L
498567 2022-002 Material Weakness Yes L
498568 2022-003 Material Weakness - L
1075006 2022-002 Material Weakness Yes L
1075007 2022-002 Material Weakness Yes L
1075008 2022-002 Material Weakness Yes L
1075009 2022-002 Material Weakness Yes L
1075010 2022-003 Material Weakness - L

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $795,418 Yes 2
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $171,630 - 1
93.155 Rural Health Research Centers $76,691 - 1
93.301 Small Rural Hospital Improvement Grant Program $10,513 - 1

Contacts

Name Title Type
TRMSAE2MZN24 Megan Rath Auditee
7014523125 Nicole Heldstab Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards (the “schedule”) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Wishek Hospital Clinic Association D/B/A South Central Health has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule includes the federal award activity of Wishek Hospital Clinic Association D/B/A South Central Health under programs of the federal government for the year ended December 31, 2022. 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 operations of Wishek Hospital Clinic Association D/B/A South Central Health, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Wishek Hospital Clinic Association D/B/A South Central Health.
Title: COVID-19 PROVIDER RELIEF FUND AND AMERICAN RESCUE PLAN (ARP) RURAL DISTRIBUTION Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards (the “schedule”) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Wishek Hospital Clinic Association D/B/A South Central Health has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Association received amounts from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund and American Rescue Plan Rural Distribution program (Federal Financial Assistance Listing/CFDA #93.498) during the years ended December 31, 2020 and 2021. The PRF expenditures were not recognized on the schedule until the expenditures were included in the reporting to HHS for the funds received prior to December 31, 2021 for period 4, as required under the PRF program. The Association recorded $149,773 in revenue on the financial statements for the year ended December 31, 2022. The total amount of PRF expenditures included on the Schedule requires management to make estimates and assumptions that affect the reported amounts. Accordingly, such expenditures are considered a significant estimate. Estimates and assumptions may include reducing actual expenses by amounts that have been reimbursed or are obligated to be reimbursed by other sources and estimating marginal increases in expenses related to coronavirus. Actual amounts could differ from those estimates.
Title: LOAN PROGRAM Accounting Policies: Expenditures reported on the schedule of expenditures of federal awards (the “schedule”) are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Wishek Hospital Clinic Association D/B/A South Central Health has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported on the Schedule consist of the beginning of the year outstanding balances plus advances made on the loans during the year. The outstanding balance as of December 31, 2022 was $738,834

Finding Details

Finding 2022-002
2022-002: Material Weakness - Untimely Filing of Data Collection Form All federal programs Criteria 2 CFR § 200.512(a)(1) states that an auditee must submit a data collection form and audit reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition The Association is required to submit the data collection form electronically to the Federal Audit Clearinghouse. This is to be completed within 30 days of report issuance or nine months after year-end (December 31), whichever is earlier. The data collection forms for the years ending December 31, 2022 and 2021 were not timely filed. Cause The Association had not completed its audits as of the due date, therefore the data collection forms were not filed in a timely manner. Effect The Association was not in compliance with the requirements for filing the data collection form. Context The Association’s December 31, 2022 audited financial statements was not completed as of the due date, therefore the data collection form was not filed timely. Recommendation We recommend that the Association ensure that the audit is completed in a timely manner and the data collection form is filed within the required timeline. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding, has prepared an assessment of the root causes of this material weakness, and has developed a corrective action plan. Indication of Repeat Finding Yes, see finding 2021-002
Finding 2022-002
2022-002: Material Weakness - Untimely Filing of Data Collection Form All federal programs Criteria 2 CFR § 200.512(a)(1) states that an auditee must submit a data collection form and audit reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition The Association is required to submit the data collection form electronically to the Federal Audit Clearinghouse. This is to be completed within 30 days of report issuance or nine months after year-end (December 31), whichever is earlier. The data collection forms for the years ending December 31, 2022 and 2021 were not timely filed. Cause The Association had not completed its audits as of the due date, therefore the data collection forms were not filed in a timely manner. Effect The Association was not in compliance with the requirements for filing the data collection form. Context The Association’s December 31, 2022 audited financial statements was not completed as of the due date, therefore the data collection form was not filed timely. Recommendation We recommend that the Association ensure that the audit is completed in a timely manner and the data collection form is filed within the required timeline. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding, has prepared an assessment of the root causes of this material weakness, and has developed a corrective action plan. Indication of Repeat Finding Yes, see finding 2021-002
Finding 2022-002
2022-002: Material Weakness - Untimely Filing of Data Collection Form All federal programs Criteria 2 CFR § 200.512(a)(1) states that an auditee must submit a data collection form and audit reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition The Association is required to submit the data collection form electronically to the Federal Audit Clearinghouse. This is to be completed within 30 days of report issuance or nine months after year-end (December 31), whichever is earlier. The data collection forms for the years ending December 31, 2022 and 2021 were not timely filed. Cause The Association had not completed its audits as of the due date, therefore the data collection forms were not filed in a timely manner. Effect The Association was not in compliance with the requirements for filing the data collection form. Context The Association’s December 31, 2022 audited financial statements was not completed as of the due date, therefore the data collection form was not filed timely. Recommendation We recommend that the Association ensure that the audit is completed in a timely manner and the data collection form is filed within the required timeline. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding, has prepared an assessment of the root causes of this material weakness, and has developed a corrective action plan. Indication of Repeat Finding Yes, see finding 2021-002
Finding 2022-002
2022-002: Material Weakness - Untimely Filing of Data Collection Form All federal programs Criteria 2 CFR § 200.512(a)(1) states that an auditee must submit a data collection form and audit reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition The Association is required to submit the data collection form electronically to the Federal Audit Clearinghouse. This is to be completed within 30 days of report issuance or nine months after year-end (December 31), whichever is earlier. The data collection forms for the years ending December 31, 2022 and 2021 were not timely filed. Cause The Association had not completed its audits as of the due date, therefore the data collection forms were not filed in a timely manner. Effect The Association was not in compliance with the requirements for filing the data collection form. Context The Association’s December 31, 2022 audited financial statements was not completed as of the due date, therefore the data collection form was not filed timely. Recommendation We recommend that the Association ensure that the audit is completed in a timely manner and the data collection form is filed within the required timeline. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding, has prepared an assessment of the root causes of this material weakness, and has developed a corrective action plan. Indication of Repeat Finding Yes, see finding 2021-002
Finding 2022-003
2022-003: Reporting Material Weakness in Internal Control Over Compliance and noncompliance Department of Agriculture Federal Assistance Listing/CFDA #10.766 Community Facilities Loans and Grants Cluster 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. The Association is required to submit an accurate report to the department of agriculture for each filing period of outstanding loan balances. Condition The Association filed the RD 442-3 and RD 442-2 with inaccurate financial information for the current and prior year balance sheets and prior year statement of income and equity. The forms due in 2022 for the December 31, 2021 year end were also not timely. Cause The Association did not have the internal controls in place to ensure the financial information submitted to the Department of Agriculture was complete and accurate. Effect The lack of adequate policies over the report preparation and submission increases the risk that employees participating in the federal award administration may not be able to detect and correct noncompliance in a timely manner. The Association submitted inaccurate financial information and the 2021 reporting wasn’t performed timely. Context RD forms included financial information that doesn’t agree with the financial statements for the years presented and the 2021 reporting forms were not timely. Recommendation We recommend that the Association enhance internal control policies to ensure the reports are supported by supporting calculations. This would include implementing a secondary review and approval over the reporting. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding, has prepared an assessment of the root causes of this material weakness, and has developed a corrective action plan. Indication of Repeat Finding This is not a repeat finding in the current year.
Finding 2022-002
2022-002: Material Weakness - Untimely Filing of Data Collection Form All federal programs Criteria 2 CFR § 200.512(a)(1) states that an auditee must submit a data collection form and audit reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition The Association is required to submit the data collection form electronically to the Federal Audit Clearinghouse. This is to be completed within 30 days of report issuance or nine months after year-end (December 31), whichever is earlier. The data collection forms for the years ending December 31, 2022 and 2021 were not timely filed. Cause The Association had not completed its audits as of the due date, therefore the data collection forms were not filed in a timely manner. Effect The Association was not in compliance with the requirements for filing the data collection form. Context The Association’s December 31, 2022 audited financial statements was not completed as of the due date, therefore the data collection form was not filed timely. Recommendation We recommend that the Association ensure that the audit is completed in a timely manner and the data collection form is filed within the required timeline. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding, has prepared an assessment of the root causes of this material weakness, and has developed a corrective action plan. Indication of Repeat Finding Yes, see finding 2021-002
Finding 2022-002
2022-002: Material Weakness - Untimely Filing of Data Collection Form All federal programs Criteria 2 CFR § 200.512(a)(1) states that an auditee must submit a data collection form and audit reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition The Association is required to submit the data collection form electronically to the Federal Audit Clearinghouse. This is to be completed within 30 days of report issuance or nine months after year-end (December 31), whichever is earlier. The data collection forms for the years ending December 31, 2022 and 2021 were not timely filed. Cause The Association had not completed its audits as of the due date, therefore the data collection forms were not filed in a timely manner. Effect The Association was not in compliance with the requirements for filing the data collection form. Context The Association’s December 31, 2022 audited financial statements was not completed as of the due date, therefore the data collection form was not filed timely. Recommendation We recommend that the Association ensure that the audit is completed in a timely manner and the data collection form is filed within the required timeline. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding, has prepared an assessment of the root causes of this material weakness, and has developed a corrective action plan. Indication of Repeat Finding Yes, see finding 2021-002
Finding 2022-002
2022-002: Material Weakness - Untimely Filing of Data Collection Form All federal programs Criteria 2 CFR § 200.512(a)(1) states that an auditee must submit a data collection form and audit reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition The Association is required to submit the data collection form electronically to the Federal Audit Clearinghouse. This is to be completed within 30 days of report issuance or nine months after year-end (December 31), whichever is earlier. The data collection forms for the years ending December 31, 2022 and 2021 were not timely filed. Cause The Association had not completed its audits as of the due date, therefore the data collection forms were not filed in a timely manner. Effect The Association was not in compliance with the requirements for filing the data collection form. Context The Association’s December 31, 2022 audited financial statements was not completed as of the due date, therefore the data collection form was not filed timely. Recommendation We recommend that the Association ensure that the audit is completed in a timely manner and the data collection form is filed within the required timeline. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding, has prepared an assessment of the root causes of this material weakness, and has developed a corrective action plan. Indication of Repeat Finding Yes, see finding 2021-002
Finding 2022-002
2022-002: Material Weakness - Untimely Filing of Data Collection Form All federal programs Criteria 2 CFR § 200.512(a)(1) states that an auditee must submit a data collection form and audit reporting package to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor’s report or nine months after the end of the audit period. Condition The Association is required to submit the data collection form electronically to the Federal Audit Clearinghouse. This is to be completed within 30 days of report issuance or nine months after year-end (December 31), whichever is earlier. The data collection forms for the years ending December 31, 2022 and 2021 were not timely filed. Cause The Association had not completed its audits as of the due date, therefore the data collection forms were not filed in a timely manner. Effect The Association was not in compliance with the requirements for filing the data collection form. Context The Association’s December 31, 2022 audited financial statements was not completed as of the due date, therefore the data collection form was not filed timely. Recommendation We recommend that the Association ensure that the audit is completed in a timely manner and the data collection form is filed within the required timeline. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding, has prepared an assessment of the root causes of this material weakness, and has developed a corrective action plan. Indication of Repeat Finding Yes, see finding 2021-002
Finding 2022-003
2022-003: Reporting Material Weakness in Internal Control Over Compliance and noncompliance Department of Agriculture Federal Assistance Listing/CFDA #10.766 Community Facilities Loans and Grants Cluster 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. The Association is required to submit an accurate report to the department of agriculture for each filing period of outstanding loan balances. Condition The Association filed the RD 442-3 and RD 442-2 with inaccurate financial information for the current and prior year balance sheets and prior year statement of income and equity. The forms due in 2022 for the December 31, 2021 year end were also not timely. Cause The Association did not have the internal controls in place to ensure the financial information submitted to the Department of Agriculture was complete and accurate. Effect The lack of adequate policies over the report preparation and submission increases the risk that employees participating in the federal award administration may not be able to detect and correct noncompliance in a timely manner. The Association submitted inaccurate financial information and the 2021 reporting wasn’t performed timely. Context RD forms included financial information that doesn’t agree with the financial statements for the years presented and the 2021 reporting forms were not timely. Recommendation We recommend that the Association enhance internal control policies to ensure the reports are supported by supporting calculations. This would include implementing a secondary review and approval over the reporting. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding, has prepared an assessment of the root causes of this material weakness, and has developed a corrective action plan. Indication of Repeat Finding This is not a repeat finding in the current year.