FAC Explorer

Audit 353739

FY End
2024-09-30
Total Expended
$956,390
Findings
2
Programs
1
Organization: Grape Community Hospital, Inc. D/b/a George C. Grape Community Hospital (IA)
Year: 2024 Accepted: 2025-04-15
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
555144 2024-004 Material Weakness - N
1131586 2024-004 Material Weakness - N

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $956,390 Yes 1

Contacts

Name Title Type
GSMNJMKKVM13 Doug Brandt Auditee
7123821515 Brian Green Auditor
No contacts on file

Notes to SEFA

Title: Note 4 - Community Facilities Loan Program Accounting Policies: Note 1 - Basis of Presentation The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the Community Hospital, Inc. dba George C. Grape Community Hospital and Medical Clinic, Inc. (the Hospital), under programs of the federal government for the year ended September 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 Hospital, it is not intended to and does not present the financial position, changes in net assets or cash flows of Hospital. Note 2 - Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: Note 3 - Indirect Cost Rate The Hospital does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. Loan outstanding of $517,096 at the beginning of the year is included in the federal expenditures presented in the Schedule. Also included is a USDA grant in the amount of $439,294 awarded during the year.

Finding Details

Finding 2024-004
Department of Agriculture Federal Financial Assistance Listing #10.766 Special Tests and Provisions Material Weakness in Internal Control over Compliance and Noncompliance Criteria: 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 award. The loan resolution security agreements state the Organization must set aside a reserve amount which may be established as a bookkeeping account or as a separate bank account. Funds may be deposited in institutions insured by state and federal government or invested in marketable securities backed by the full faith and credit of the United States. Condition: The funds that represented the debt service reserve fund were commingled with an existing operating cash account. Cause: The Hospital did not maintain a separate bank account or general ledger account for the debt service reserve fund. Effect: The debt service reserve funds were commingled with other operating funds within an operating cash account. Questioned Costs: None reported. Context: Sampling was not used. Recommendation: We recommend that management maintain a separate bank account or general ledger account for the debt service reserve fund. Views of Responsible Officials: Management agrees with the finding.
Finding 2024-004
Department of Agriculture Federal Financial Assistance Listing #10.766 Special Tests and Provisions Material Weakness in Internal Control over Compliance and Noncompliance Criteria: 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 award. The loan resolution security agreements state the Organization must set aside a reserve amount which may be established as a bookkeeping account or as a separate bank account. Funds may be deposited in institutions insured by state and federal government or invested in marketable securities backed by the full faith and credit of the United States. Condition: The funds that represented the debt service reserve fund were commingled with an existing operating cash account. Cause: The Hospital did not maintain a separate bank account or general ledger account for the debt service reserve fund. Effect: The debt service reserve funds were commingled with other operating funds within an operating cash account. Questioned Costs: None reported. Context: Sampling was not used. Recommendation: We recommend that management maintain a separate bank account or general ledger account for the debt service reserve fund. Views of Responsible Officials: Management agrees with the finding.