FAC Explorer

Audit 32272

FY End
2022-06-30
Total Expended
$44.63M
Findings
6
Programs
5
Organization: Sioux Center Health (IA)
Year: 2022 Accepted: 2023-02-16
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
35839 2022-003 Significant Deficiency - L
35840 2022-003 Significant Deficiency - L
35841 2022-003 Significant Deficiency - L
612281 2022-003 Significant Deficiency - L
612282 2022-003 Significant Deficiency - L
612283 2022-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $7.50M Yes 1
93.498 Provider Relief Fund $175,260 - 0
93.301 Small Rural Hospital Improvement Grant Program $38,119 - 0
21.019 Coronavirus Relief Fund $27,803 - 0
93.889 National Bioterrorism Hospital Preparedness Program $6,247 - 0

Contacts

Name Title Type
L75JNT582HD8 Crystal Richter Auditee
7127228153 Joy Feige Auditor
No contacts on file

Notes to SEFA

Title: Community Facilities Loan 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 assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Health Center does not draw for indirect administrative expenses and has not elected to use the 10% deminimis cost rate. Expenditures reported in this schedule under the Rural Development Program Community Facilities Loans and Grants consist of the beginning of the year outstanding loan balance plus advances during the year. There were advances on the Series 2019 Health Facility Revenue Bonds of $13,839,538. The outstanding balances at June 30, 2022 for the Series 2019 and Series 2020 Health Facility Revenue Bonds are $14,289,173 and $7,500,000, respectively, and $21,971,945 for the 2012 Direct Loan. Subsequent to year end, the Series 2019 and Series 2020 Health Facilities Revenue Bonds used as interim financing were paid off with USDA long-term financing.
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 assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Health Center does not draw for indirect administrative expenses and has not elected to use the 10% deminimis cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Sioux Center Health (the Health Center) under programs of the federal government for the year ended June 30, 2022. The information is presented in accordance with the requirements of Title 2 U.S. Code of FederalRegulations 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 Health Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Health Center.
Title: Provider Relief Funds 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 assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Health Center does not draw for indirect administrative expenses and has not elected to use the 10% deminimis cost rate. The Health Center received amounts from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund and American Rescue Plan Rural Distribution (PRF) program (Federal Financial Assistance Listing #93.498) in the amount of $6,247,927 as of June 30, 2022. The PRF expenditures are not recognized on the schedule until the expenditures are included in the reporting to HHS as required under the PRF program.The following summarizes the Provider Relief Funds and the timing of when the amounts were recognized in the financial statements.(see table in report)

Finding Details

Finding 2022-003
Finding 2022-003 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Reporting Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Health Center is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Section VI ? Conditions Required After Loan Closing in the Letter of Conditions dated November 1, 2019, for the USDA loan states that the audited financial statements must be provided to USDA within 150 days of year-end. In addition, the operating budget must be submitted to USDA within 30 days prior to the fiscal year-end. Condition: The Health Center?s FY2023 operating budget and prior year audited financial statements were not submitted to USDA within the submission timeframe. Cause: The Health Center?s FY2023 operating budget was not approved prior to the June 1, 2023, deadline and the prior year audited financial statements were not submitted timely. The audited financial statements were approved at the November 2021 board meeting, but not submitted until February 2022. Effect: The required reports are submitted outside of the time frame contained in the Letter of Conditions. Questioned Costs: None reported Context/Sampling: Sampling was not used Repeat Finding from Prior Year: No Recommendation: Management should implement processes and controls relating to the reporting requirements to comply with the Letter of Conditions Response: Management agrees with the finding.
Finding 2022-003
Finding 2022-003 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Reporting Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Health Center is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Section VI ? Conditions Required After Loan Closing in the Letter of Conditions dated November 1, 2019, for the USDA loan states that the audited financial statements must be provided to USDA within 150 days of year-end. In addition, the operating budget must be submitted to USDA within 30 days prior to the fiscal year-end. Condition: The Health Center?s FY2023 operating budget and prior year audited financial statements were not submitted to USDA within the submission timeframe. Cause: The Health Center?s FY2023 operating budget was not approved prior to the June 1, 2023, deadline and the prior year audited financial statements were not submitted timely. The audited financial statements were approved at the November 2021 board meeting, but not submitted until February 2022. Effect: The required reports are submitted outside of the time frame contained in the Letter of Conditions. Questioned Costs: None reported Context/Sampling: Sampling was not used Repeat Finding from Prior Year: No Recommendation: Management should implement processes and controls relating to the reporting requirements to comply with the Letter of Conditions Response: Management agrees with the finding.
Finding 2022-003
Finding 2022-003 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Reporting Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Health Center is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Section VI ? Conditions Required After Loan Closing in the Letter of Conditions dated November 1, 2019, for the USDA loan states that the audited financial statements must be provided to USDA within 150 days of year-end. In addition, the operating budget must be submitted to USDA within 30 days prior to the fiscal year-end. Condition: The Health Center?s FY2023 operating budget and prior year audited financial statements were not submitted to USDA within the submission timeframe. Cause: The Health Center?s FY2023 operating budget was not approved prior to the June 1, 2023, deadline and the prior year audited financial statements were not submitted timely. The audited financial statements were approved at the November 2021 board meeting, but not submitted until February 2022. Effect: The required reports are submitted outside of the time frame contained in the Letter of Conditions. Questioned Costs: None reported Context/Sampling: Sampling was not used Repeat Finding from Prior Year: No Recommendation: Management should implement processes and controls relating to the reporting requirements to comply with the Letter of Conditions Response: Management agrees with the finding.
Finding 2022-003
Finding 2022-003 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Reporting Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Health Center is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Section VI ? Conditions Required After Loan Closing in the Letter of Conditions dated November 1, 2019, for the USDA loan states that the audited financial statements must be provided to USDA within 150 days of year-end. In addition, the operating budget must be submitted to USDA within 30 days prior to the fiscal year-end. Condition: The Health Center?s FY2023 operating budget and prior year audited financial statements were not submitted to USDA within the submission timeframe. Cause: The Health Center?s FY2023 operating budget was not approved prior to the June 1, 2023, deadline and the prior year audited financial statements were not submitted timely. The audited financial statements were approved at the November 2021 board meeting, but not submitted until February 2022. Effect: The required reports are submitted outside of the time frame contained in the Letter of Conditions. Questioned Costs: None reported Context/Sampling: Sampling was not used Repeat Finding from Prior Year: No Recommendation: Management should implement processes and controls relating to the reporting requirements to comply with the Letter of Conditions Response: Management agrees with the finding.
Finding 2022-003
Finding 2022-003 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Reporting Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Health Center is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Section VI ? Conditions Required After Loan Closing in the Letter of Conditions dated November 1, 2019, for the USDA loan states that the audited financial statements must be provided to USDA within 150 days of year-end. In addition, the operating budget must be submitted to USDA within 30 days prior to the fiscal year-end. Condition: The Health Center?s FY2023 operating budget and prior year audited financial statements were not submitted to USDA within the submission timeframe. Cause: The Health Center?s FY2023 operating budget was not approved prior to the June 1, 2023, deadline and the prior year audited financial statements were not submitted timely. The audited financial statements were approved at the November 2021 board meeting, but not submitted until February 2022. Effect: The required reports are submitted outside of the time frame contained in the Letter of Conditions. Questioned Costs: None reported Context/Sampling: Sampling was not used Repeat Finding from Prior Year: No Recommendation: Management should implement processes and controls relating to the reporting requirements to comply with the Letter of Conditions Response: Management agrees with the finding.
Finding 2022-003
Finding 2022-003 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Reporting Significant Deficiency in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Health Center is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Section VI ? Conditions Required After Loan Closing in the Letter of Conditions dated November 1, 2019, for the USDA loan states that the audited financial statements must be provided to USDA within 150 days of year-end. In addition, the operating budget must be submitted to USDA within 30 days prior to the fiscal year-end. Condition: The Health Center?s FY2023 operating budget and prior year audited financial statements were not submitted to USDA within the submission timeframe. Cause: The Health Center?s FY2023 operating budget was not approved prior to the June 1, 2023, deadline and the prior year audited financial statements were not submitted timely. The audited financial statements were approved at the November 2021 board meeting, but not submitted until February 2022. Effect: The required reports are submitted outside of the time frame contained in the Letter of Conditions. Questioned Costs: None reported Context/Sampling: Sampling was not used Repeat Finding from Prior Year: No Recommendation: Management should implement processes and controls relating to the reporting requirements to comply with the Letter of Conditions Response: Management agrees with the finding.