FAC Explorer

Audit 321577

FY End
2023-12-31
Total Expended
$15.42M
Findings
8
Programs
5
Organization: Winner Regional Healthcare Center (SD)
Year: 2023 Accepted: 2024-09-27
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
498825 2023-004 Material Weakness Yes N
498826 2023-005 Material Weakness - AB
498827 2023-004 Material Weakness Yes N
498828 2023-005 Material Weakness - AB
1075267 2023-004 Material Weakness Yes N
1075268 2023-005 Material Weakness - AB
1075269 2023-004 Material Weakness Yes N
1075270 2023-005 Material Weakness - AB

Programs

ALN Program Spent Major Findings
93.155 Rural Health Research Centers $258,376 - 0
10.766 Community Facilities Loans and Grants $138,000 Yes 2
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $34,515 - 0
93.301 Small Rural Hospital Improvement Grant Program $13,011 - 0
93.994 Maternal and Child Health Services Block Grant to the States $3,025 - 0

Contacts

Name Title Type
PRPBMBN2Y1J3 Amanda Soesbe Auditee
6058427100 Judon Mettler Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Center does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Winner Regional Healthcare Center (the Center) under programs of the federal government for the year ended December 31, 2023. The information 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 Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Center.
Title: Community Facilities Loans and Grants Program Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Center does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. Expenditures reporting in this schedule under the Community Facilities Loans and Grants Program consist of the beginning of the year outstanding balance for the direct loan plus advances during the year. There was one loan advance during the year ended December 31, 2023 in the amount of $102,898. The outstanding balance at December 31, 2023 was $14,643,787 for the direct USDA loan. Under the Community Facilities Grant Program, the Center was the direct recipient of a grant from the United States Department of Agriculture for the purchase of a Stainless Steel Cabinet, Shelving HVAC, and Steris Sterilizer.
Title: Special Supplemental Nutrition Program for Women, Infants, and Children Accounting Policies: Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Center does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. Federal reimbursements for the Special Supplemental Nutrition Program for Women, Infants, and Children Federal Financial Assistance Listing #10.557 are not based upon specific expenditures. Therefore, the amounts reported in the schedule of expenditures of federal awards represent cash received rather than federal expenditures.

Finding Details

Finding 2023-004
United States Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Special Tests and Provisions Material Weakness in Internal Control over Compliance Criteria: The Center must establish and maintain effective internal control over the reserve fund account that is maintained in accordance with the loan resolution. The Loan Resolution Security Agreement requires a monthly amount to be set aside in a reserve fund until the specified account balance is reached. Condition: There was no documented independent review of the monthly reserve fund account reconciliations as compared to the required minimum balance. Cause: The Center did not have a formal process in place to compare the required balance per the Loan Resolution Security Agreement to the monthly reserve fund account balance. Effect: With no formal review or approval in place, the risk increases for employees participating in the federal award administration to not detect and correct noncompliance in a timely manner. Questioned Costs: None reported. The required reserve balance was appropriately funded as of December 31, 2023. Context/Sampling: Sampling was not used. Repeat Finding from Prior Years: Yes, prior year finding 2022-006. Recommendation: We recommend management implement procedures to include monitoring over special test and provisions related to federal expenditures including an independent review of the monthly account reconciliation to ensure the minimum reserve balance requirement is being met. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-005
United States Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance and Noncompliance 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. Condition: During review of expenditure listings, three expenditures were claimed under the USDA Grant Program after the Center received an advancement of USDA loan funds for those same three expenditures. Cause: The Center did not have a formal review process in place over the USDA Grant expenditure listing and USDA loan advancement to ensure double dipping was not occurring. Effect: The Center received funding from two federal programs for the same expenditures. Questioned Costs: $43,354. Context/Sampling: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend management implement internal control procedures to include a preparer and reviewer over federal expenditure listings to ensure no double dipping occurs with federal programs. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-004
United States Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Special Tests and Provisions Material Weakness in Internal Control over Compliance Criteria: The Center must establish and maintain effective internal control over the reserve fund account that is maintained in accordance with the loan resolution. The Loan Resolution Security Agreement requires a monthly amount to be set aside in a reserve fund until the specified account balance is reached. Condition: There was no documented independent review of the monthly reserve fund account reconciliations as compared to the required minimum balance. Cause: The Center did not have a formal process in place to compare the required balance per the Loan Resolution Security Agreement to the monthly reserve fund account balance. Effect: With no formal review or approval in place, the risk increases for employees participating in the federal award administration to not detect and correct noncompliance in a timely manner. Questioned Costs: None reported. The required reserve balance was appropriately funded as of December 31, 2023. Context/Sampling: Sampling was not used. Repeat Finding from Prior Years: Yes, prior year finding 2022-006. Recommendation: We recommend management implement procedures to include monitoring over special test and provisions related to federal expenditures including an independent review of the monthly account reconciliation to ensure the minimum reserve balance requirement is being met. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-005
United States Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance and Noncompliance 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. Condition: During review of expenditure listings, three expenditures were claimed under the USDA Grant Program after the Center received an advancement of USDA loan funds for those same three expenditures. Cause: The Center did not have a formal review process in place over the USDA Grant expenditure listing and USDA loan advancement to ensure double dipping was not occurring. Effect: The Center received funding from two federal programs for the same expenditures. Questioned Costs: $43,354. Context/Sampling: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend management implement internal control procedures to include a preparer and reviewer over federal expenditure listings to ensure no double dipping occurs with federal programs. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-004
United States Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Special Tests and Provisions Material Weakness in Internal Control over Compliance Criteria: The Center must establish and maintain effective internal control over the reserve fund account that is maintained in accordance with the loan resolution. The Loan Resolution Security Agreement requires a monthly amount to be set aside in a reserve fund until the specified account balance is reached. Condition: There was no documented independent review of the monthly reserve fund account reconciliations as compared to the required minimum balance. Cause: The Center did not have a formal process in place to compare the required balance per the Loan Resolution Security Agreement to the monthly reserve fund account balance. Effect: With no formal review or approval in place, the risk increases for employees participating in the federal award administration to not detect and correct noncompliance in a timely manner. Questioned Costs: None reported. The required reserve balance was appropriately funded as of December 31, 2023. Context/Sampling: Sampling was not used. Repeat Finding from Prior Years: Yes, prior year finding 2022-006. Recommendation: We recommend management implement procedures to include monitoring over special test and provisions related to federal expenditures including an independent review of the monthly account reconciliation to ensure the minimum reserve balance requirement is being met. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-005
United States Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance and Noncompliance 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. Condition: During review of expenditure listings, three expenditures were claimed under the USDA Grant Program after the Center received an advancement of USDA loan funds for those same three expenditures. Cause: The Center did not have a formal review process in place over the USDA Grant expenditure listing and USDA loan advancement to ensure double dipping was not occurring. Effect: The Center received funding from two federal programs for the same expenditures. Questioned Costs: $43,354. Context/Sampling: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend management implement internal control procedures to include a preparer and reviewer over federal expenditure listings to ensure no double dipping occurs with federal programs. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-004
United States Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Special Tests and Provisions Material Weakness in Internal Control over Compliance Criteria: The Center must establish and maintain effective internal control over the reserve fund account that is maintained in accordance with the loan resolution. The Loan Resolution Security Agreement requires a monthly amount to be set aside in a reserve fund until the specified account balance is reached. Condition: There was no documented independent review of the monthly reserve fund account reconciliations as compared to the required minimum balance. Cause: The Center did not have a formal process in place to compare the required balance per the Loan Resolution Security Agreement to the monthly reserve fund account balance. Effect: With no formal review or approval in place, the risk increases for employees participating in the federal award administration to not detect and correct noncompliance in a timely manner. Questioned Costs: None reported. The required reserve balance was appropriately funded as of December 31, 2023. Context/Sampling: Sampling was not used. Repeat Finding from Prior Years: Yes, prior year finding 2022-006. Recommendation: We recommend management implement procedures to include monitoring over special test and provisions related to federal expenditures including an independent review of the monthly account reconciliation to ensure the minimum reserve balance requirement is being met. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-005
United States Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Activities Allowed or Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control over Compliance and Noncompliance 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. Condition: During review of expenditure listings, three expenditures were claimed under the USDA Grant Program after the Center received an advancement of USDA loan funds for those same three expenditures. Cause: The Center did not have a formal review process in place over the USDA Grant expenditure listing and USDA loan advancement to ensure double dipping was not occurring. Effect: The Center received funding from two federal programs for the same expenditures. Questioned Costs: $43,354. Context/Sampling: Sampling was not used. Repeat Finding from Prior Years: No Recommendation: We recommend management implement internal control procedures to include a preparer and reviewer over federal expenditure listings to ensure no double dipping occurs with federal programs. Views of Responsible Officials: Management agrees with the finding.