FAC Explorer

Audit 347373

FY End
2024-06-30
Total Expended
$141.27M
Findings
2
Programs
1
Organization: Holzer Health System (OH)
Year: 2024 Accepted: 2025-03-21
Auditor: Plante & Moran PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
529377 2024-001 Material Weakness - P
1105819 2024-001 Material Weakness - P

Programs

ALN Program Spent Major Findings
14.128 Mortgage Insurance Hospitals $141.27M Yes 1

Contacts

Name Title Type
F6D8JMXK5ME4 Debbie Caldwell Auditee
7404465195 Ryan Sells Auditor
No contacts on file

Notes to SEFA

Title: Loan Balances Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Holzer Health System (the “System”) under programs of the federal government for the year ended June 30, 2024. The information in the 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 System, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the System. Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The System has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The System has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the schedule of expenditures of federal awards. The balances of loans outstanding at June 30, 2024 consist of the following: Department of Housing and Urban Development - Mortgage Insurance Hospitals - 14.128 - $135,560,077

Finding Details

Finding 2024-001
Assistance Listing, Federal Agency, and Program Name - 14.128 Department of Housing and Urban Development - Mortgage Insurance Hospitals Federal Award Identification Number and Year - N/A Pass through Entity - None Finding Type - Material weakness Repeat Finding - No Criteria - Per 2 CFR 200.502(b), the balance of loans oustanding as of the beginning of the year should be reported on the schedule of expenditures of federal awards (the "Schedule") if the federal government imposes continuing compliance requirements for the loan, until the period in which the debt is repaid. Condition - The System obtained a loan from the Department of Housing and Urban Development (HUD) during their fiscal year June 30, 2021. The proceeds of the loan were used to repay a loan with another financial institution during that same year. The HUD loan includes continuing reporting requirements, which require the loan to be reported on the Schedule until it is repaid. The System improperly excluded the HUD loan balance from their Schedule in previous years. The beginning of the year loan balance has been reported on the System's Schedule for the year ended June 30, 2024, in accordance with 2 CFR 200.502(b). Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The System was not aware of that this loan program was required to be reported on the Schedule. Cause and Effect - The loan balance was improperly omitted from the Schedule each year beginning with the year ended June 30, 2021. The 2024 Schedule has been updated to include the loan balance in accordance with 2 CFR 200.502(b). Recommendation - Schedule reporting requirements should be reviewed to ensure completeness and federal loan programs should be evaluated for potential continuing reporting requirements that would require the loan balance to be reported on the Schedule in all years until the loan is repaid. Views of Responsible Officials and Corrective Action Plan - Management of the System agrees with the recommendation and will put procedures in place to identify federal reporting requirements.
Finding 2024-001
Assistance Listing, Federal Agency, and Program Name - 14.128 Department of Housing and Urban Development - Mortgage Insurance Hospitals Federal Award Identification Number and Year - N/A Pass through Entity - None Finding Type - Material weakness Repeat Finding - No Criteria - Per 2 CFR 200.502(b), the balance of loans oustanding as of the beginning of the year should be reported on the schedule of expenditures of federal awards (the "Schedule") if the federal government imposes continuing compliance requirements for the loan, until the period in which the debt is repaid. Condition - The System obtained a loan from the Department of Housing and Urban Development (HUD) during their fiscal year June 30, 2021. The proceeds of the loan were used to repay a loan with another financial institution during that same year. The HUD loan includes continuing reporting requirements, which require the loan to be reported on the Schedule until it is repaid. The System improperly excluded the HUD loan balance from their Schedule in previous years. The beginning of the year loan balance has been reported on the System's Schedule for the year ended June 30, 2024, in accordance with 2 CFR 200.502(b). Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - The System was not aware of that this loan program was required to be reported on the Schedule. Cause and Effect - The loan balance was improperly omitted from the Schedule each year beginning with the year ended June 30, 2021. The 2024 Schedule has been updated to include the loan balance in accordance with 2 CFR 200.502(b). Recommendation - Schedule reporting requirements should be reviewed to ensure completeness and federal loan programs should be evaluated for potential continuing reporting requirements that would require the loan balance to be reported on the Schedule in all years until the loan is repaid. Views of Responsible Officials and Corrective Action Plan - Management of the System agrees with the recommendation and will put procedures in place to identify federal reporting requirements.