The accompanying schedule of expenditures of federal and state awards (the Schedule) includes the federal and state award activity of Lafayette County, including Memorial Hospital of Lafayette County, under programs of the federal and state government for the year ended December 31, 2023. 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) and the State Single Audit Guidelines. Because the Schedule presents only a selected portion of the operations of Lafayette County, it is not intended to and does not present the financial position, changes in net position or cash flows of Lafayette County.
The Schedule of Expenditures of Federal and State Awards includes adjustments through the Grant Enrollment, Application and Reporting System (GEARS) reports dated March 30, 2024 and the SPARC reports for December 2023. Federal/state funding splits for awards passed through Wisconsin Department of Health Services (DHS) are based on the splits provided by DHS on February 14, 2024. Federal/state funding splits for awards passed through Wisconsin Department of Children and Families (DCF) are based on the splits provided by DCF on April 2, 2024.
Lafayette County received federal awards from the following pass-through agencies: DHS Wisconsin Department of Health Services DOA Wisconsin Department of Administration DCF Wisconsin Department of Children and Families DMA Wisconsin Department of Military Affairs GWAAR Greater Wisconsin Agency on Aging Resources Green County Green County, Wisconsin DOJ Wisconsin Department of Justice
Subsequent to the issuance of Lafayette County's single audit report for the year ended December 31, 2023, the County identified an omission of a federal loan expenditures from the schedule of expenditures of federal and state awards. The differences between this report and the report previously issued includes the addition of $3,671,537 in loan funding drawn and spent from the U.S. Department of Agriculture (USDA) under Assistance Listing Number (ALN) 10.766 Community Facilities Loans and Grants. Assistance Listing 10.766 was previously identified as a major federal program. As such, the incremental increase in expenditures were subject to audit as a major federal program.
During 2023, the Lafayette County Hospital (Hospital) issued the Taxable Memorial Hospital Mortgage Revenue Bonds, Series 2023A and 2023B, which are guaranteed by USDA, and the Taxable Memorial Hospital Mortgage Revenue Bonds Series 2023C Bonds, dated in June 2023, to provide financing for construction of a replacement hospital facility. The Series 2023A, 2023B, and 2023C Bonds were issued in conjunction with a community hospital facility loan agreement with the USDA. Under the terms of the USDA Rural Development loan agreement, the Hospital is anticipated to be required to repay the loan over a 30-year amortization schedule with installments of principal and interest beginning two years following the closing of the loan. The interest rate for the Series 2023A and Series 2023B Bonds have a fixed rate of 7.50%. The interest rate for the Series 2023C bonds is currently based on the Wall Street Journal Prime Rate less 2.00% and is adjusted monthly on the first day of each month during the period of construction and then following construction, the Series 2023C bonds will be transitioned from the interim financing mode to permenant placement mode bonds and will have a fixed interest rate applied over the duration that the bonds are outstanding. As of December 31, 2023, $5,050,000 has been drawn on the bonds and, either was expended toward the project, or included in reserve account. However, only $3,671,537 of these draws were spent during 2023.