FAC Explorer

Audit 364799

FY End
2024-12-31
Total Expended
$14.72M
Findings
2
Programs
6
Organization: Winner Regional Healthcare Center (SD)
Year: 2024 Accepted: 2025-08-22
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
574463 2024-004 Material Weakness Yes N
1150905 2024-004 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $14.64M Yes 1
10.557 Wic Special Supplemental Nutrition Program for Women, Infants, and Children $39,443 - 0
93.301 Small Rural Hospital Improvement Grant Program $13,312 - 0
93.217 Family Planning Services $11,359 - 0
93.800 Organized Approaches to Increase Colorectal Cancer Screening $7,000 - 0
93.994 Maternal and Child Health Services Block Grant to the States $3,420 - 0

Contacts

Name Title Type
PRPBMBN2Y1J3 Amanda Soesbe Auditee
6058427100 Judon Mettler Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported in 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 Center 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 Winner Regional Healthcare Center (the Center) under programs of the federal government for the year ended December 31, 2024. 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 Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Center.
Title: Community Facilities Loans and Grants Accounting Policies: Expenditures reported in 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 Center does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. Expenditures reporting in the schedule under the Community Facilities Loans and Grants consist of the beginning of the year outstanding balance for the direct loan plus advances during the year. There were no loan advances during the year ended December 31, 2024. The outstanding balance at December 31, 2024 was $14,301,365 for the direct USDA loan.
Title: WIC Special Supplemental Nutrition Program for Women, Infants, and Children Accounting Policies: Expenditures reported in 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 Center does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. Federal reimbursements for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children Federal Financial Assistance Listing #10.557 are not based upon specific expenditures. Therefore, the amounts reported in the schedule represent cash received rather than federal expenditures.

Finding Details

Finding 2024-004
United States Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Special Tests and Provisions Material Weakness in Internal Control over Compliance Criteria: The Center must establish and maintain effective internal control over the reserve fund account that is maintained in accordance with the loan resolution. The Loan Resolution Security Agreement requires a monthly amount to be set aside in a reserve fund until the specified account balance is reached. Condition: There was no documented independent review of the monthly reserve fund account balance as compared to the required minimum balance. Cause: The Center presented the balance of the reserve account to the Governing Board, however, there was no communication to the Governing Board of the required minimum balance per the Loan Resolution Security Agreement. Effect: With no formal review or approval in place, the risk increases for employees participating in the federal award administration to not detect and correct noncompliance in a timely manner. Questioned Costs: None reported. The required reserve balance was appropriately funded as of December 31, 2024. Context/Sampling: Sampling was not used. Repeat Finding from Prior Years: Yes, prior year finding 2023‐004. Recommendation: We recommend management implement procedures to include monitoring over special test and provisions related to federal expenditures including an independent review of the monthly reserve balance to ensure the activity is being monitored and the minimum reserve balance requirement is being met. Views of Responsible Officials: Management agrees with the finding.
Finding 2024-004
United States Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Special Tests and Provisions Material Weakness in Internal Control over Compliance Criteria: The Center must establish and maintain effective internal control over the reserve fund account that is maintained in accordance with the loan resolution. The Loan Resolution Security Agreement requires a monthly amount to be set aside in a reserve fund until the specified account balance is reached. Condition: There was no documented independent review of the monthly reserve fund account balance as compared to the required minimum balance. Cause: The Center presented the balance of the reserve account to the Governing Board, however, there was no communication to the Governing Board of the required minimum balance per the Loan Resolution Security Agreement. Effect: With no formal review or approval in place, the risk increases for employees participating in the federal award administration to not detect and correct noncompliance in a timely manner. Questioned Costs: None reported. The required reserve balance was appropriately funded as of December 31, 2024. Context/Sampling: Sampling was not used. Repeat Finding from Prior Years: Yes, prior year finding 2023‐004. Recommendation: We recommend management implement procedures to include monitoring over special test and provisions related to federal expenditures including an independent review of the monthly reserve balance to ensure the activity is being monitored and the minimum reserve balance requirement is being met. Views of Responsible Officials: Management agrees with the finding.