FAC Explorer

Audit 328121

FY End
2023-12-31
Total Expended
$1.19M
Findings
2
Programs
4
Organization: Calhoun Liberty Hospital Association INC (FL)
Year: 2023 Accepted: 2024-11-12
Auditor: Draffin & Tucker LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
505441 2023-003 Significant Deficiency - N
1081883 2023-003 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $625,042 - 0
10.766 Community Facilities Loans and Grants $336,855 Yes 1
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $220,264 Yes 0
93.301 Small Rural Hospital Improvement Grant Program $11,416 - 0

Contacts

Name Title Type
MVVFA4FW3CL4 Emily Brown Auditee
8506745411 Charles Horne Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Notes to Schedule of Expenditures of Federal Awards: 1. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Calhoun-Liberty Hospital Association, Inc., D/B/A Calhoun-Liberty Hospital, (Hospital) under programs of the federal government for the year ended December 31, 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 Hospital, it is not intended to and does not present the financial position, change in net assets, or cash flows of the Hospital. 2. Expenditures reported on the Schedule are reported on the accrual basis of accounting which is consistent with the preparation of the Hospital’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. 3. The Hospital did not have any non-cash awards during the fiscal year. 4. There were no awards passed through to subrecipients. 5. The Hospital 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 December 31, 2023. The balance of the loan outstanding as of December 31, 2023 is $242,478. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2023-003
2023-003 – Material Weakness - Noncompliance 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 Hospital did not have a separate USDA reserve bank account in place. Criteria: The Hospital 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 Hospital’s USDA representative, nor was the Hospital notified of its tardy submission at any point during the fiscal year. Effect and questioned costs: The Hospital did not create a loan reserve account of approximately $76,059 as laid out in the respective loan agreement for its reporting requirements. Recommendation: We recommend the Hospital 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 Hospital agrees with this finding. See management’s corrective action plan.
Finding 2023-003
2023-003 – Material Weakness - Noncompliance 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 Hospital did not have a separate USDA reserve bank account in place. Criteria: The Hospital 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 Hospital’s USDA representative, nor was the Hospital notified of its tardy submission at any point during the fiscal year. Effect and questioned costs: The Hospital did not create a loan reserve account of approximately $76,059 as laid out in the respective loan agreement for its reporting requirements. Recommendation: We recommend the Hospital 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 Hospital agrees with this finding. See management’s corrective action plan.