FAC Explorer

Audit 356278

FY End
2022-06-30
Total Expended
$15.64M
Findings
6
Programs
5
Organization: Cooperstown Medical Center D/b/a Dakota Regional Medical Center (ND)
Year: 2022 Accepted: 2025-05-14
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
560387 2022-003 Material Weakness - P
560388 2022-003 Material Weakness - P
560389 2022-004 Significant Deficiency - P
1136829 2022-003 Material Weakness - P
1136830 2022-003 Material Weakness - P
1136831 2022-004 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $14.96M Yes 2
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $500,000 - 1
93.301 Covid-19 Small Rural Hospital Improvement Grant Program $121,574 - 0
93.697 Covid-19 Testing and Mitigation for Rural Health Clinics $49,461 - 0
93.241 State Rural Hospital Flexibility Program $15,079 - 0

Contacts

Name Title Type
F3AWQ6E1VE55 Judy Monson Auditee
7017861723 Renee M. Gravalin Auditor
No contacts on file

Notes to SEFA

Title: Principles of Consolidation Accounting Policies: The accompanying Consolidated Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Cooperstown Medical Center and Subsidiary (the Medical Center) under programs of the federal government for the year ended June 30, 2022. The information 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 Medical Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Medical Center. Expenditures reported on the Schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Medical Center has not elected to use the 10% de minimis cost rate. The Consolidated Schedule of Expenditures and Federal awards includes the federal grant activity of Cooperstown Medical Center and its subsidiary, the Cooperstown Medical Center Foundation (collectively, the Medical Center) which received federal financial assistance. Significant intercompany balances and transactions have been eliminated in the Consolidated Schedule of Expenditures of Federal Awards.
Title: Loans Outstanding Accounting Policies: The accompanying Consolidated Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Cooperstown Medical Center and Subsidiary (the Medical Center) under programs of the federal government for the year ended June 30, 2022. The information 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 Medical Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Medical Center. Expenditures reported on the Schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Medical Center has not elected to use the 10% de minimis cost rate. Expenditures reported on this Schedule consist of two loans including a Direct Loan and a 90% Guaranteed Loan. The beginning of the year Guaranteed Loan balance was $2,000,000, of which 90% is guaranteed, and totals $1,800,000. The beginning of the year Direct Loan balance was $591,677. The Direct Loan had expenditures of $12,564,528 in fiscal year 2022. The expenditures include amounts recognized as construction payables at June 30, 2022, which totaled $2,350,618. Total expenditures as reported on the Schedule under the Community Facilities Loans and Grants represents the Guaranteed and Direct Loan beginning of the year advances plus current loan advances incurred during the year ended June 30, 2022. The total of the Guaranteed Loan and the Direct Loan reported on the Schedule is $14,956,205. The balance outstanding on the Direct Loan and Guaranteed Loan at June 30, 2022 was $13,021,487.

Finding Details

Finding 2022-003
Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Department of Treasury Federal Financial Assistance Listing #21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control Over Compliance - Other Criteria: Proper controls over financial reporting include the ability to prepare the Consolidated Schedule of Expenditures of Federal Awards (Schedule) and accompanying notes to the Schedule. Condition: The Medical Center does not have an internal control system designed to provide for a complete and accurate schedule of expenditures of federal awards being audited. We were requested to draft the Schedule. Cause: Auditor assistance with preparation of the Schedule is not unusual, as the Schedule has unique and specialized requirements and preparation is only required when the Medical Center meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Medical Center would not be able to draft a Schedule that is correct without assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to the Medical Center’s Consolidated Schedule of Expenditures of Federal Awards and internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-003
Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Department of Treasury Federal Financial Assistance Listing #21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control Over Compliance - Other Criteria: Proper controls over financial reporting include the ability to prepare the Consolidated Schedule of Expenditures of Federal Awards (Schedule) and accompanying notes to the Schedule. Condition: The Medical Center does not have an internal control system designed to provide for a complete and accurate schedule of expenditures of federal awards being audited. We were requested to draft the Schedule. Cause: Auditor assistance with preparation of the Schedule is not unusual, as the Schedule has unique and specialized requirements and preparation is only required when the Medical Center meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Medical Center would not be able to draft a Schedule that is correct without assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to the Medical Center’s Consolidated Schedule of Expenditures of Federal Awards and internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-004
Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Department of Treasury Federal Financial Assistance Listing #21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control Over Compliance - Other Criteria: Proper controls over financial reporting include the ability to prepare the Consolidated Schedule of Expenditures of Federal Awards (Schedule) and accompanying notes to the Schedule. Condition: The Medical Center does not have an internal control system designed to provide for a complete and accurate schedule of expenditures of federal awards being audited. We were requested to draft the Schedule. Cause: Auditor assistance with preparation of the Schedule is not unusual, as the Schedule has unique and specialized requirements and preparation is only required when the Medical Center meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Medical Center would not be able to draft a Schedule that is correct without assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to the Medical Center’s Consolidated Schedule of Expenditures of Federal Awards and internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-003
Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Department of Treasury Federal Financial Assistance Listing #21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control Over Compliance - Other Criteria: Proper controls over financial reporting include the ability to prepare the Consolidated Schedule of Expenditures of Federal Awards (Schedule) and accompanying notes to the Schedule. Condition: The Medical Center does not have an internal control system designed to provide for a complete and accurate schedule of expenditures of federal awards being audited. We were requested to draft the Schedule. Cause: Auditor assistance with preparation of the Schedule is not unusual, as the Schedule has unique and specialized requirements and preparation is only required when the Medical Center meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Medical Center would not be able to draft a Schedule that is correct without assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to the Medical Center’s Consolidated Schedule of Expenditures of Federal Awards and internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-003
Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Department of Treasury Federal Financial Assistance Listing #21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control Over Compliance - Other Criteria: Proper controls over financial reporting include the ability to prepare the Consolidated Schedule of Expenditures of Federal Awards (Schedule) and accompanying notes to the Schedule. Condition: The Medical Center does not have an internal control system designed to provide for a complete and accurate schedule of expenditures of federal awards being audited. We were requested to draft the Schedule. Cause: Auditor assistance with preparation of the Schedule is not unusual, as the Schedule has unique and specialized requirements and preparation is only required when the Medical Center meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Medical Center would not be able to draft a Schedule that is correct without assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to the Medical Center’s Consolidated Schedule of Expenditures of Federal Awards and internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-004
Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Department of Treasury Federal Financial Assistance Listing #21.027 COVID-19 Coronavirus State and Local Fiscal Recovery Funds Preparation of Schedule of Expenditures of Federal Awards Material Weakness in Internal Control Over Compliance - Other Criteria: Proper controls over financial reporting include the ability to prepare the Consolidated Schedule of Expenditures of Federal Awards (Schedule) and accompanying notes to the Schedule. Condition: The Medical Center does not have an internal control system designed to provide for a complete and accurate schedule of expenditures of federal awards being audited. We were requested to draft the Schedule. Cause: Auditor assistance with preparation of the Schedule is not unusual, as the Schedule has unique and specialized requirements and preparation is only required when the Medical Center meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Medical Center would not be able to draft a Schedule that is correct without assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to the Medical Center’s Consolidated Schedule of Expenditures of Federal Awards and internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.