FAC Explorer

Audit 375939

FY End
2025-06-30
Total Expended
$4.72M
Findings
1
Programs
3
Organization: Platte Health Center (SD)
Year: 2025 Accepted: 2025-12-18
Auditor: EIDE BAILLY LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1165369 2025-003 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $1.20M Yes 1
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $28,942 Yes 0
93.301 SMALL RURAL HOSPITAL IMPROVEMENT GRANT PROGRAM $13,832 Yes 0

Contacts

Name Title Type
PWTLWEPNV5F6 Vicki Jensen Auditee
6053373364 Judon Mettler Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Platte Community Memorial Hospital, Inc. d/b/a Platte Health Center. (Health Center) under programs of the federal government for the year ended June 30, 2025. 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 Health Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Health Center.
Expenditures reported in this schedule consist of the beginning of the year outstanding balance for the direct loan and a guaranteed loan. There were no loan advances during the year ended June 30, 2025. The guaranteed loan is guaranteed by the U.S. Department of Agriculture for up to 90% of the loan. Accordingly, total expenditures reported on the schedule under this guaranteed loan represent 90% of the beginning of the year outstanding balance of the loan. The outstanding balances at June 30, 2025 were $3,379,781 for the direct loan and $994,276 for the bank loan, of which USDA has guaranteed 90% of the loan balance.

Finding Details

Finding 2025-003
Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants – Guaranteed Loan Special Test and Provisions 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. The commitment letter for the term loan with the bank requires debt service coverage ratio and working capital to be calculated yearly using audited financial statements. Condition: As of June 30, 2025, management did not perform the proper calculations for the debt service coverage ratio in accordance with the commitment letter. Additionally, the required debt service coverage ratio and required working capital amount were not presented to the board to ensure compliance is obtained. Cause: The Health Center did not have the proper understanding of the calculation for the annual debt service coverage ratio as of year‐end. Additionally, the covenant requirements were not presented to the board to ensure compliance is obtained. The board may be unaware of the covenant requirements identified within the commitment letter. Effect: The Health Center had errors in the calculation and may be in violation of the debt service coverage ratio and working capital requirements if calculations are not performed properly and the covenant requirements are not presented alongside the calculations to ensure compliance. Questioned Costs: None reported. Context/Sampling: Sampling was not used. Repeat Finding from Prior Year: Yes, similar Finding 2024‐003 Recommendation: We recommend management use the formulas prescribed by the commitment letter to calculate the debt service coverage ratio and working capital amount and present these alongside the covenant requirements as a part of their year‐end close process to ensure all covenants of the loan are met. Views of Responsible Officials: Management agrees with the finding.