FAC Explorer

Audit 360609

FY End
2023-12-31
Total Expended
$30.53M
Findings
2
Programs
5
Organization: Schoolcraft Memorial Hospital (MI)
Year: 2023 Accepted: 2025-06-30
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
568870 2023-003 Significant Deficiency - L
1145312 2023-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $30.07M Yes 0
21.027 Coronavirus State and Local Fiscal Recovery Funds $423,557 Yes 1
93.155 Rural Health Research Centers $13,300 - 0
93.301 Small Rural Hospital Improvement Grant Program $11,900 - 0
93.788 Opioid Str $3,704 - 0

Contacts

Name Title Type
FQYKGVDNXMP7 Eric Price Auditee
9063413233 Ashley Brandt-Duda Auditor
No contacts on file

Notes to SEFA

Title: Note 1 – Basis of Presentation Accounting Policies: 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 Hospital does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Schoolcraft Memorial Hospital (the Hospital) under programs of the federal government for the year ended December 31, 2023. 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 Hospital, it is not intended to and does not present the net position, changes in net position, or cash flows of the Hospital.
Title: Note 4 – Community Facilities Loans and Grants Accounting Policies: 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 Hospital does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. Expenditures reported in this schedule consist of the beginning of the year outstanding USDA direct loan balances plus advances made on the USDA direct loans during the year which total $27,922,964, a $1,800,000 USDA guaranteed loan, and $349,685 of expenditures incurred under a USDA Community Facilities Grant. The total outstanding USDA direct loan balances at December 31, 2023 totaled $26,794,152 and the balance of the USDA guaranteed loan was $1,786,946.

Finding Details

Finding 2023-003
Department of Treasury Federal Assistance Listing #21.027 Coronavirus State and Loan Fiscal Recovery Funds Reporting Significant Deficiency in Internal Control Over Compliance Criteria - 2 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. Condition - During our testing, we noted a lack of documentation of a secondary review on the expense reports that were required to be submitted. Cause - The Organization did not have an adequate internal control policy in place to ensure that a secondary review and approval of the reports was taking place. Effect - The lack of adequate policies governing review and approval increase the risk that employees participating in the federal award administration may not be able to detect and correct noncompliance in a timely manner. Questioned Costs - None. Context - A selection of three expense reports out of total population of six were tested. Documentation of a secondary review was missing from the three reports tested. Repeat Finding from Prior Years - No Recommendation - We recommend that the Organization enhance internal control policies to ensure that a secondary review of expense report is taking place prior to submission and that those reviews are formally documented. Views of Responsible Officials - Management agrees with the finding.
Finding 2023-003
Department of Treasury Federal Assistance Listing #21.027 Coronavirus State and Loan Fiscal Recovery Funds Reporting Significant Deficiency in Internal Control Over Compliance Criteria - 2 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. Condition - During our testing, we noted a lack of documentation of a secondary review on the expense reports that were required to be submitted. Cause - The Organization did not have an adequate internal control policy in place to ensure that a secondary review and approval of the reports was taking place. Effect - The lack of adequate policies governing review and approval increase the risk that employees participating in the federal award administration may not be able to detect and correct noncompliance in a timely manner. Questioned Costs - None. Context - A selection of three expense reports out of total population of six were tested. Documentation of a secondary review was missing from the three reports tested. Repeat Finding from Prior Years - No Recommendation - We recommend that the Organization enhance internal control policies to ensure that a secondary review of expense report is taking place prior to submission and that those reviews are formally documented. Views of Responsible Officials - Management agrees with the finding.