FAC Explorer

Audit 330652

FY End
2023-06-30
Total Expended
$9.44M
Findings
12
Programs
6
Organization: Scotland County Memorial Hospital District (MO)
Year: 2023 Accepted: 2024-12-03
Auditor: Wipfli LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
512898 2023-004 Significant Deficiency - L
512899 2023-004 Significant Deficiency - L
512900 2023-004 Significant Deficiency - L
512901 2023-005 Significant Deficiency - N
512902 2023-005 Significant Deficiency - N
512903 2023-005 Significant Deficiency - N
1089340 2023-004 Significant Deficiency - L
1089341 2023-004 Significant Deficiency - L
1089342 2023-004 Significant Deficiency - L
1089343 2023-005 Significant Deficiency - N
1089344 2023-005 Significant Deficiency - N
1089345 2023-005 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $7.08M Yes 2
93.498 Provider Relief Fund $610,414 - 0
93.940 Hiv Prevention Activities_health Department Based $258,376 - 0
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $117,838 - 0
93.301 Small Rural Hospital Improvement Grant Program $11,411 - 0
93.241 State Rural Hospital Flexibility Program $9,900 - 0

Contacts

Name Title Type
LB3GVNGADQN4 Carolyn Davies Auditee
6604658513 Paul Traczek Auditor
No contacts on file

Notes to SEFA

Title: Note 1: General Accounting Policies: Note 2: Basis of Accounting Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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 reimbursement. Provider Relief Funding (PRF) is not subject to cost principles requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF are based on the PRF period of availability, terms, and conditions of the PRF program. De Minimis Rate Used: N Rate Explanation: Note 3: Indirect Cost Rate The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (“Schedule”) includes the federal award activity of Scotland County Memorial Hospital District (the “District”). 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 (the “Uniform Guidance”). Because the schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the District.
Title: Note 4: Sub-Recipients Accounting Policies: Note 2: Basis of Accounting Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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 reimbursement. Provider Relief Funding (PRF) is not subject to cost principles requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF are based on the PRF period of availability, terms, and conditions of the PRF program. De Minimis Rate Used: N Rate Explanation: Note 3: Indirect Cost Rate The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The District does not have any sub-recipients of federal awards.
Title: Note 5: Balance of Outstanding Loans Accounting Policies: Note 2: Basis of Accounting Expenditures reported on the Schedule are reported on the accrual basis of accounting. 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 reimbursement. Provider Relief Funding (PRF) is not subject to cost principles requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF are based on the PRF period of availability, terms, and conditions of the PRF program. De Minimis Rate Used: N Rate Explanation: Note 3: Indirect Cost Rate The District has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The District has direct loans from the U.S. Department of Agriculture under the community facility loans and grants program. Amounts reported in the schedule of expenditures of federal awards are the balances at the beginnning of the year. Outstanding balance at June 30, 2023 were as follows: 97-01 $586,111 and 97-03 $6,896,738.

Finding Details

Finding 2023-004
Finding 2023-004 Repeat Finding: Yes Program Name: Community Facilities Loans and Grants Assistance Listing Number: 10.766 Federal Agency: U.S. Department of Agriculture Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting Condition: The District did not meet its financial reporting obligations under the grant during the year. The District did not complete the 2022 audit and file the Data Collection Form (SF-SAC) by the due date of March 31, 2024. Criteria The District is required to complete the audit and file the Data Collection Form (SF-SAC) by March 31, 2024. Cause: The Data Collection Form was not filed within the required period due to a delay in the preparations for the audit. Effect: The District was not in compliance with federal regulations and the program. Recommendation: We recommend audit preparations are completed on a timely basis to ensure that the reporting deadline is met. Review of Responsible Officials: Managemet acknowledges there were significant delays in the audit due to capacity issues and a delay in the 2022 audit. Management has been in contact with all of its program representatives to keep them informed on the situation.
Finding 2023-004
Finding 2023-004 Repeat Finding: Yes Program Name: Community Facilities Loans and Grants Assistance Listing Number: 10.766 Federal Agency: U.S. Department of Agriculture Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting Condition: The District did not meet its financial reporting obligations under the grant during the year. The District did not complete the 2022 audit and file the Data Collection Form (SF-SAC) by the due date of March 31, 2024. Criteria The District is required to complete the audit and file the Data Collection Form (SF-SAC) by March 31, 2024. Cause: The Data Collection Form was not filed within the required period due to a delay in the preparations for the audit. Effect: The District was not in compliance with federal regulations and the program. Recommendation: We recommend audit preparations are completed on a timely basis to ensure that the reporting deadline is met. Review of Responsible Officials: Managemet acknowledges there were significant delays in the audit due to capacity issues and a delay in the 2022 audit. Management has been in contact with all of its program representatives to keep them informed on the situation.
Finding 2023-004
Finding 2023-004 Repeat Finding: Yes Program Name: Community Facilities Loans and Grants Assistance Listing Number: 10.766 Federal Agency: U.S. Department of Agriculture Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting Condition: The District did not meet its financial reporting obligations under the grant during the year. The District did not complete the 2022 audit and file the Data Collection Form (SF-SAC) by the due date of March 31, 2024. Criteria The District is required to complete the audit and file the Data Collection Form (SF-SAC) by March 31, 2024. Cause: The Data Collection Form was not filed within the required period due to a delay in the preparations for the audit. Effect: The District was not in compliance with federal regulations and the program. Recommendation: We recommend audit preparations are completed on a timely basis to ensure that the reporting deadline is met. Review of Responsible Officials: Managemet acknowledges there were significant delays in the audit due to capacity issues and a delay in the 2022 audit. Management has been in contact with all of its program representatives to keep them informed on the situation.
Finding 2023-005
Finding 2023-005 Repeat Finding: Yes Program Name: Community Facilities Loans and Grants Assistance Listing Number: 10.766 Federal Agency: U.S. Department of Agriculture Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions Condition: The District did not meet its financial covenants required under the program during the year, and we, as the auditors, were unable to properly calculate the required financial covenants because of potential missing or misstated financial statement information due to the adverse opinion on the 2022 financial statements and related disclaimer of opinion included in our accompanying 2023 Independent Auditor's Report. Criteria The District is required to meet certain financial covenants as described in Article VIII of the Hospital Revenue Bonds Series A loan documents dated October 25, 2012. Cause: The District has had significant financial challenges and turnover within its finance department. Effect: The District was not in compliance with the program. Recommendation: We recommend that management put a plan in place to become compliant with the financial covenants of the debt. Review of Responsible Officials: Managemet acknowledges they were not in compliance with the financial covenants of the bond. Management has been in contact USDA to keep them informed on the situation and has put plans into place to improve the financial position of the District.
Finding 2023-005
Finding 2023-005 Repeat Finding: Yes Program Name: Community Facilities Loans and Grants Assistance Listing Number: 10.766 Federal Agency: U.S. Department of Agriculture Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions Condition: The District did not meet its financial covenants required under the program during the year, and we, as the auditors, were unable to properly calculate the required financial covenants because of potential missing or misstated financial statement information due to the adverse opinion on the 2022 financial statements and related disclaimer of opinion included in our accompanying 2023 Independent Auditor's Report. Criteria The District is required to meet certain financial covenants as described in Article VIII of the Hospital Revenue Bonds Series A loan documents dated October 25, 2012. Cause: The District has had significant financial challenges and turnover within its finance department. Effect: The District was not in compliance with the program. Recommendation: We recommend that management put a plan in place to become compliant with the financial covenants of the debt. Review of Responsible Officials: Managemet acknowledges they were not in compliance with the financial covenants of the bond. Management has been in contact USDA to keep them informed on the situation and has put plans into place to improve the financial position of the District.
Finding 2023-005
Finding 2023-005 Repeat Finding: Yes Program Name: Community Facilities Loans and Grants Assistance Listing Number: 10.766 Federal Agency: U.S. Department of Agriculture Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions Condition: The District did not meet its financial covenants required under the program during the year, and we, as the auditors, were unable to properly calculate the required financial covenants because of potential missing or misstated financial statement information due to the adverse opinion on the 2022 financial statements and related disclaimer of opinion included in our accompanying 2023 Independent Auditor's Report. Criteria The District is required to meet certain financial covenants as described in Article VIII of the Hospital Revenue Bonds Series A loan documents dated October 25, 2012. Cause: The District has had significant financial challenges and turnover within its finance department. Effect: The District was not in compliance with the program. Recommendation: We recommend that management put a plan in place to become compliant with the financial covenants of the debt. Review of Responsible Officials: Managemet acknowledges they were not in compliance with the financial covenants of the bond. Management has been in contact USDA to keep them informed on the situation and has put plans into place to improve the financial position of the District.
Finding 2023-004
Finding 2023-004 Repeat Finding: Yes Program Name: Community Facilities Loans and Grants Assistance Listing Number: 10.766 Federal Agency: U.S. Department of Agriculture Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting Condition: The District did not meet its financial reporting obligations under the grant during the year. The District did not complete the 2022 audit and file the Data Collection Form (SF-SAC) by the due date of March 31, 2024. Criteria The District is required to complete the audit and file the Data Collection Form (SF-SAC) by March 31, 2024. Cause: The Data Collection Form was not filed within the required period due to a delay in the preparations for the audit. Effect: The District was not in compliance with federal regulations and the program. Recommendation: We recommend audit preparations are completed on a timely basis to ensure that the reporting deadline is met. Review of Responsible Officials: Managemet acknowledges there were significant delays in the audit due to capacity issues and a delay in the 2022 audit. Management has been in contact with all of its program representatives to keep them informed on the situation.
Finding 2023-004
Finding 2023-004 Repeat Finding: Yes Program Name: Community Facilities Loans and Grants Assistance Listing Number: 10.766 Federal Agency: U.S. Department of Agriculture Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting Condition: The District did not meet its financial reporting obligations under the grant during the year. The District did not complete the 2022 audit and file the Data Collection Form (SF-SAC) by the due date of March 31, 2024. Criteria The District is required to complete the audit and file the Data Collection Form (SF-SAC) by March 31, 2024. Cause: The Data Collection Form was not filed within the required period due to a delay in the preparations for the audit. Effect: The District was not in compliance with federal regulations and the program. Recommendation: We recommend audit preparations are completed on a timely basis to ensure that the reporting deadline is met. Review of Responsible Officials: Managemet acknowledges there were significant delays in the audit due to capacity issues and a delay in the 2022 audit. Management has been in contact with all of its program representatives to keep them informed on the situation.
Finding 2023-004
Finding 2023-004 Repeat Finding: Yes Program Name: Community Facilities Loans and Grants Assistance Listing Number: 10.766 Federal Agency: U.S. Department of Agriculture Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Reporting Condition: The District did not meet its financial reporting obligations under the grant during the year. The District did not complete the 2022 audit and file the Data Collection Form (SF-SAC) by the due date of March 31, 2024. Criteria The District is required to complete the audit and file the Data Collection Form (SF-SAC) by March 31, 2024. Cause: The Data Collection Form was not filed within the required period due to a delay in the preparations for the audit. Effect: The District was not in compliance with federal regulations and the program. Recommendation: We recommend audit preparations are completed on a timely basis to ensure that the reporting deadline is met. Review of Responsible Officials: Managemet acknowledges there were significant delays in the audit due to capacity issues and a delay in the 2022 audit. Management has been in contact with all of its program representatives to keep them informed on the situation.
Finding 2023-005
Finding 2023-005 Repeat Finding: Yes Program Name: Community Facilities Loans and Grants Assistance Listing Number: 10.766 Federal Agency: U.S. Department of Agriculture Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions Condition: The District did not meet its financial covenants required under the program during the year, and we, as the auditors, were unable to properly calculate the required financial covenants because of potential missing or misstated financial statement information due to the adverse opinion on the 2022 financial statements and related disclaimer of opinion included in our accompanying 2023 Independent Auditor's Report. Criteria The District is required to meet certain financial covenants as described in Article VIII of the Hospital Revenue Bonds Series A loan documents dated October 25, 2012. Cause: The District has had significant financial challenges and turnover within its finance department. Effect: The District was not in compliance with the program. Recommendation: We recommend that management put a plan in place to become compliant with the financial covenants of the debt. Review of Responsible Officials: Managemet acknowledges they were not in compliance with the financial covenants of the bond. Management has been in contact USDA to keep them informed on the situation and has put plans into place to improve the financial position of the District.
Finding 2023-005
Finding 2023-005 Repeat Finding: Yes Program Name: Community Facilities Loans and Grants Assistance Listing Number: 10.766 Federal Agency: U.S. Department of Agriculture Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions Condition: The District did not meet its financial covenants required under the program during the year, and we, as the auditors, were unable to properly calculate the required financial covenants because of potential missing or misstated financial statement information due to the adverse opinion on the 2022 financial statements and related disclaimer of opinion included in our accompanying 2023 Independent Auditor's Report. Criteria The District is required to meet certain financial covenants as described in Article VIII of the Hospital Revenue Bonds Series A loan documents dated October 25, 2012. Cause: The District has had significant financial challenges and turnover within its finance department. Effect: The District was not in compliance with the program. Recommendation: We recommend that management put a plan in place to become compliant with the financial covenants of the debt. Review of Responsible Officials: Managemet acknowledges they were not in compliance with the financial covenants of the bond. Management has been in contact USDA to keep them informed on the situation and has put plans into place to improve the financial position of the District.
Finding 2023-005
Finding 2023-005 Repeat Finding: Yes Program Name: Community Facilities Loans and Grants Assistance Listing Number: 10.766 Federal Agency: U.S. Department of Agriculture Questioned Costs: N/A Type of Finding: Noncompliance, Significant Deficiency Compliance Requirement: Special Tests and Provisions Condition: The District did not meet its financial covenants required under the program during the year, and we, as the auditors, were unable to properly calculate the required financial covenants because of potential missing or misstated financial statement information due to the adverse opinion on the 2022 financial statements and related disclaimer of opinion included in our accompanying 2023 Independent Auditor's Report. Criteria The District is required to meet certain financial covenants as described in Article VIII of the Hospital Revenue Bonds Series A loan documents dated October 25, 2012. Cause: The District has had significant financial challenges and turnover within its finance department. Effect: The District was not in compliance with the program. Recommendation: We recommend that management put a plan in place to become compliant with the financial covenants of the debt. Review of Responsible Officials: Managemet acknowledges they were not in compliance with the financial covenants of the bond. Management has been in contact USDA to keep them informed on the situation and has put plans into place to improve the financial position of the District.