FAC Explorer

Audit 323810

FY End
2023-12-31
Total Expended
$17.27M
Findings
4
Programs
3
Organization: Yuma District Hospital (CO)
Year: 2023 Accepted: 2024-10-03
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
501730 2023-005 Significant Deficiency Yes N
501731 2023-005 Significant Deficiency Yes N
1078172 2023-005 Significant Deficiency Yes N
1078173 2023-005 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants (guaranteed) $11.69M - 1
10.766 Community Facilities Loans and Grants (direct) $5.55M - 1
93.155 Rural Health Research Centers $27,054 Yes 0

Contacts

Name Title Type
XBUFLM9B1XH7 Rick Korf Auditee
9708484605 Brad Dejong Auditor
No contacts on file

Notes to SEFA

Title: Loan Programs Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Yuma District Hospital’s (Hospital) 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 Hospital, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Hospital. Expenditures reported on 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 Hospital does not draw for indirect administrative expenses and has not elected to use the 10% de minimus cost rate. Expenditures reported on this schedule consist of the beginning of the year outstanding loan balances of the Hospital’s USDA direct loan of $5,554,627 and guaranteed loan of $11,686,068, which is 90% of the beginning of the year outstanding balance of the guaranteed loan. The Hospital made no advances on the loans during the year ended December 31, 2023. The Hospital’s outstanding loan balances for the direct loan and the guaranteed loan as of December 31, 2023 are $5,423,487 and $12,421,001 (of which 90% is $11,178,901), respectively.

Finding Details

Finding 2023-005
2023‐005 Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Special Tests and Provisions 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 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 awards. Condition – During our testing, there was no formal review separate from the preparer over the reserve fund reconciliations for the federal program. Cause – The Hospital did not have an adequate internal control policy in place to ensure review and approval over the reserve funds. Effect – The lack of adequate policies governing review increases the risk that employees participating in the federal award administration may not be able to detect and correct noncompliance in a timely manner. Questioned Costs – None reported. Context – Sampling was not used. Repeat Finding from Prior Years – Yes, 2022‐005 Recommendation – We recommend the Hospital enhance internal control policies to ensure that formal documentation of reviews is present. Views of Responsible Officials – Management agrees with the finding.
Finding 2023-005
2023‐005 Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Special Tests and Provisions 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 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 awards. Condition – During our testing, there was no formal review separate from the preparer over the reserve fund reconciliations for the federal program. Cause – The Hospital did not have an adequate internal control policy in place to ensure review and approval over the reserve funds. Effect – The lack of adequate policies governing review increases the risk that employees participating in the federal award administration may not be able to detect and correct noncompliance in a timely manner. Questioned Costs – None reported. Context – Sampling was not used. Repeat Finding from Prior Years – Yes, 2022‐005 Recommendation – We recommend the Hospital enhance internal control policies to ensure that formal documentation of reviews is present. Views of Responsible Officials – Management agrees with the finding.
Finding 2023-005
2023‐005 Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Special Tests and Provisions 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 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 awards. Condition – During our testing, there was no formal review separate from the preparer over the reserve fund reconciliations for the federal program. Cause – The Hospital did not have an adequate internal control policy in place to ensure review and approval over the reserve funds. Effect – The lack of adequate policies governing review increases the risk that employees participating in the federal award administration may not be able to detect and correct noncompliance in a timely manner. Questioned Costs – None reported. Context – Sampling was not used. Repeat Finding from Prior Years – Yes, 2022‐005 Recommendation – We recommend the Hospital enhance internal control policies to ensure that formal documentation of reviews is present. Views of Responsible Officials – Management agrees with the finding.
Finding 2023-005
2023‐005 Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Special Tests and Provisions 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 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 awards. Condition – During our testing, there was no formal review separate from the preparer over the reserve fund reconciliations for the federal program. Cause – The Hospital did not have an adequate internal control policy in place to ensure review and approval over the reserve funds. Effect – The lack of adequate policies governing review increases the risk that employees participating in the federal award administration may not be able to detect and correct noncompliance in a timely manner. Questioned Costs – None reported. Context – Sampling was not used. Repeat Finding from Prior Years – Yes, 2022‐005 Recommendation – We recommend the Hospital enhance internal control policies to ensure that formal documentation of reviews is present. Views of Responsible Officials – Management agrees with the finding.