FAC Explorer

Audit 346262

FY End
2024-06-30
Total Expended
$1.17M
Findings
4
Programs
3
Organization: West River Area Health Education Center (SD)
Year: 2024 Accepted: 2025-03-14
Auditor: Ketel Thorstonson LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
528201 2024-003 Material Weakness Yes ABCEM
528202 2024-003 Material Weakness Yes ABCEM
1104643 2024-003 Material Weakness Yes ABCEM
1104644 2024-003 Material Weakness Yes ABCEM

Programs

ALN Program Spent Major Findings
93.107 Area Health Education Centers $169,976 - 0
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $34,028 - 0
17.268 H-1b Job Training Grants $10,654 Yes 1

Contacts

Name Title Type
DBBTN1ADVU41 Stephanie Mayfield Auditee
6057184077 Traci Hanson Auditor
No contacts on file

Notes to SEFA

Title: Note 1 – Basis of Presentation and Summary of Significant Accounting Policies Accounting Policies: Note 1 – Basis of Presentation and Summary of Significant Accounting Policies The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Organization under programs of the federal government for the year ended June 30, 2024. 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. The Schedule of Expenditures of Federal Awards is presented 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 to reimbursement. De Minimis Rate Used: Y Rate Explanation: Note 3 – Indirect Cost Rate The Organization has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Note 1 – Basis of Presentation and Summary of Significant Accounting Policies The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Organization under programs of the federal government for the year ended June 30, 2024. 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. The Schedule of Expenditures of Federal Awards is presented 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 to reimbursement.
Title: Note 2 – Indirect Cost Rate Accounting Policies: Note 1 – Basis of Presentation and Summary of Significant Accounting Policies The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Organization under programs of the federal government for the year ended June 30, 2024. 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 Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization. The Schedule of Expenditures of Federal Awards is presented 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 to reimbursement. De Minimis Rate Used: Y Rate Explanation: Note 3 – Indirect Cost Rate The Organization has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Note 2 – Indirect Cost Rate The Organization has elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2024-003
#2024-003 FINDING: Compliance Controls Federal Program Affected: H-1B Rural Healthcare Grant, Assistance Listing #17.286. Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management, Eligibility, Earmarking. Questioned Costs: None. Condition and Cause: During compliance testing, we noted there was an overall lack of segregation of duties and weaknesses in internal controls related to compliance. Criteria and Effect: Adequate internal controls are necessary to ensure compliance with federal grant programs. We noted: 1. There is no formal approval of electronic funds transfers related to the DOL program. The Executive Director receives invoices and remits payment electronically with no subsequent formal review. 2. We noted 17 federal expenditures out of 60 selected for testing did not have executive director coding or approval to indicate the expenditure was allowable. 3. Federal grant expenditures were not charged consistently to general ledger accounts. The lack of consistency makes tracking expenditures difficult for federal grant budget categories and for financial statement natural classification. Adjustments were made to reclassify inconsistencies identified during the audit. 4. Stipends for participants are required to be less than 10 percent of the grant budget. However, there is a lack of consistency when tracking tuition stipends. 5. We noted a lack of control processes surrounding cutoff of federal expenditures at year end. An adjustment was recorded to correct cutoff of grant expenditures. 6. Proper supporting documentation for eligibility requirements was not maintained during the year. Eligibility support was obtained during the audit process from participants. Repeat Finding from Prior Year: Yes, prior year finding 2023-003. Recommendation: We recommend the Organization continue to develop additional oversight and segregation of duties related to internal controls over compliance. Response/Corrective Action Plan: See Organization’s Corrective Action Plan
Finding 2024-003
#2024-003 FINDING: Compliance Controls Federal Program Affected: H-1B Rural Healthcare Grant, Assistance Listing #17.286. Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management, Eligibility, Earmarking. Questioned Costs: None. Condition and Cause: During compliance testing, we noted there was an overall lack of segregation of duties and weaknesses in internal controls related to compliance. Criteria and Effect: Adequate internal controls are necessary to ensure compliance with federal grant programs. We noted: 1. There is no formal approval of electronic funds transfers related to the DOL program. The Executive Director receives invoices and remits payment electronically with no subsequent formal review. 2. We noted 17 federal expenditures out of 60 selected for testing did not have executive director coding or approval to indicate the expenditure was allowable. 3. Federal grant expenditures were not charged consistently to general ledger accounts. The lack of consistency makes tracking expenditures difficult for federal grant budget categories and for financial statement natural classification. Adjustments were made to reclassify inconsistencies identified during the audit. 4. Stipends for participants are required to be less than 10 percent of the grant budget. However, there is a lack of consistency when tracking tuition stipends. 5. We noted a lack of control processes surrounding cutoff of federal expenditures at year end. An adjustment was recorded to correct cutoff of grant expenditures. 6. Proper supporting documentation for eligibility requirements was not maintained during the year. Eligibility support was obtained during the audit process from participants. Repeat Finding from Prior Year: Yes, prior year finding 2023-003. Recommendation: We recommend the Organization continue to develop additional oversight and segregation of duties related to internal controls over compliance. Response/Corrective Action Plan: See Organization’s Corrective Action Plan
Finding 2024-003
#2024-003 FINDING: Compliance Controls Federal Program Affected: H-1B Rural Healthcare Grant, Assistance Listing #17.286. Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management, Eligibility, Earmarking. Questioned Costs: None. Condition and Cause: During compliance testing, we noted there was an overall lack of segregation of duties and weaknesses in internal controls related to compliance. Criteria and Effect: Adequate internal controls are necessary to ensure compliance with federal grant programs. We noted: 1. There is no formal approval of electronic funds transfers related to the DOL program. The Executive Director receives invoices and remits payment electronically with no subsequent formal review. 2. We noted 17 federal expenditures out of 60 selected for testing did not have executive director coding or approval to indicate the expenditure was allowable. 3. Federal grant expenditures were not charged consistently to general ledger accounts. The lack of consistency makes tracking expenditures difficult for federal grant budget categories and for financial statement natural classification. Adjustments were made to reclassify inconsistencies identified during the audit. 4. Stipends for participants are required to be less than 10 percent of the grant budget. However, there is a lack of consistency when tracking tuition stipends. 5. We noted a lack of control processes surrounding cutoff of federal expenditures at year end. An adjustment was recorded to correct cutoff of grant expenditures. 6. Proper supporting documentation for eligibility requirements was not maintained during the year. Eligibility support was obtained during the audit process from participants. Repeat Finding from Prior Year: Yes, prior year finding 2023-003. Recommendation: We recommend the Organization continue to develop additional oversight and segregation of duties related to internal controls over compliance. Response/Corrective Action Plan: See Organization’s Corrective Action Plan
Finding 2024-003
#2024-003 FINDING: Compliance Controls Federal Program Affected: H-1B Rural Healthcare Grant, Assistance Listing #17.286. Compliance Requirement: Activities Allowed or Unallowed, Allowable Costs/Cost Principles, Cash Management, Eligibility, Earmarking. Questioned Costs: None. Condition and Cause: During compliance testing, we noted there was an overall lack of segregation of duties and weaknesses in internal controls related to compliance. Criteria and Effect: Adequate internal controls are necessary to ensure compliance with federal grant programs. We noted: 1. There is no formal approval of electronic funds transfers related to the DOL program. The Executive Director receives invoices and remits payment electronically with no subsequent formal review. 2. We noted 17 federal expenditures out of 60 selected for testing did not have executive director coding or approval to indicate the expenditure was allowable. 3. Federal grant expenditures were not charged consistently to general ledger accounts. The lack of consistency makes tracking expenditures difficult for federal grant budget categories and for financial statement natural classification. Adjustments were made to reclassify inconsistencies identified during the audit. 4. Stipends for participants are required to be less than 10 percent of the grant budget. However, there is a lack of consistency when tracking tuition stipends. 5. We noted a lack of control processes surrounding cutoff of federal expenditures at year end. An adjustment was recorded to correct cutoff of grant expenditures. 6. Proper supporting documentation for eligibility requirements was not maintained during the year. Eligibility support was obtained during the audit process from participants. Repeat Finding from Prior Year: Yes, prior year finding 2023-003. Recommendation: We recommend the Organization continue to develop additional oversight and segregation of duties related to internal controls over compliance. Response/Corrective Action Plan: See Organization’s Corrective Action Plan