FAC Explorer

Audit 39421

FY End
2022-06-30
Total Expended
$18.18M
Findings
12
Programs
4
Organization: Hegg Memorial Hospital D/b/a Hegg Health Center (IA)
Year: 2022 Accepted: 2022-12-22
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
42913 2022-003 Material Weakness - L
42914 2022-002 Material Weakness Yes P
42915 2022-003 Material Weakness - L
42916 2022-002 Material Weakness Yes P
42917 2022-003 Material Weakness - L
42918 2022-002 Material Weakness Yes P
619355 2022-003 Material Weakness - L
619356 2022-002 Material Weakness Yes P
619357 2022-003 Material Weakness - L
619358 2022-002 Material Weakness Yes P
619359 2022-003 Material Weakness - L
619360 2022-002 Material Weakness Yes P

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $3.73M Yes 2
93.498 Provider Relief Fund $221,241 - 0
93.461 Covid-19 Testing for the Uninsured $37,484 - 0
21.019 Coronavirus Relief Fund $15,254 - 0

Contacts

Name Title Type
MSNDHLQ9DZX1 Bill Slater Auditee
7124768012 Joy Feige Auditor
No contacts on file

Notes to SEFA

Title: Community Facilities Loans Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting, with the exception for the COVID-19 Testing for the Uninsured program, which are based on when the claim is determined eligible evidenced by the receipt of monies from the federal agency. 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 reported in this schedule consist of the beginning of the year outstanding loan balance for the direct loans. There were no loan advances during the year ended June 30, 2022. The outstanding balances at June 30, 2022 were $7,388,476, $6,464,917 and $3,559,944 for the direct USDA loans.
Title: Basis of Presentation Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting, with the exception for the COVID-19 Testing for the Uninsured program, which are based on when the claim is determined eligible evidenced by the receipt of monies from the federal agency. 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 Hegg Health Center (the 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 Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Center.
Title: Provider Relief Funds Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting, with the exception for the COVID-19 Testing for the Uninsured program, which are based on when the claim is determined eligible evidenced by the receipt of monies from the federal agency. 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 Center received amounts from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund and American Rescue Plan Rural Distribution (PRF) program (Federal Financial Assistance Listing/CFDA #93.498) in the amount of $4,866,794 as of June 30, 2022. The PRF expenditures are not recognized on the schedule until the expenditures are included in the reporting to HHS as required under the PRF program.The following summarizes the Provider Relief Funds and the timing of when the amounts were recognized in the financial statements.(see table in notes)

Finding Details

Finding 2022-003
2022-003 Department of Agriculture Federal Financial Assistance Listing/CFDA 10.766 Communities Facilities Loans and Grants Cluster Reporting Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Center is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Section VI ? Conditions Required After Loan Closing in the Letter of Conditions dated May 4, 2016 for the USDA loan states that the audited financial statements must be provided to USDA within 150 days of year-end. In addition, the operating budget must be submitted to USDA within 30 days prior to the fiscal year-end. Condition: The Center?s fiscal year 2023 operating budget was not submitted during the period under audit and prior year audited financial statements were not submitted to USDA until USDA requested them, which was subsequent to the submission timeframe. Cause: The Center has been providing reported as requested by USDA rather than as outlined in the Letter of Conditions. Effect: The required reports are either not submitted or submitted outside of the time frame in the Letter of Conditions. Questioned Costs: None reported Context/Sampling: Sampling was not used Repeat Finding from Prior Year: No Recommendation: Management should implement processes and controls relating to the reporting requirements to comply with the Letter of Conditions Response: Management agrees with the finding.
Finding 2022-002
2022-002 Department of Agriculture Federal Financial Assistance Listing/CFDA #10.766 Communities Facilities Loans and Grants Cluster Preparation of the Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance - Other Criteria: Proper controls over financial reporting include a system designed to prepare the schedule of expenditures of federal awards and the accompanying notes to the schedule of expenditures of federal awards. Condition: The Center does not have an internal control system designed to provide for the preparation of the schedule of expenditures of federal awards. As auditors, we were requested to assist with the preparation of the schedule of expenditures of federal awards. Cause: Auditor assistance with preparation of the schedule of expenditures of federal awards is not unusual in an organization the size of the Center. Effect: There is a reasonable possibility that the Center would not be able to draft a complete and accurate schedule of expenditures of federal awards. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes, 2021-002 Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, it is important that the Center is aware of this condition for financial reporting requirements relating to the Center?s schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-003
2022-003 Department of Agriculture Federal Financial Assistance Listing/CFDA 10.766 Communities Facilities Loans and Grants Cluster Reporting Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Center is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Section VI ? Conditions Required After Loan Closing in the Letter of Conditions dated May 4, 2016 for the USDA loan states that the audited financial statements must be provided to USDA within 150 days of year-end. In addition, the operating budget must be submitted to USDA within 30 days prior to the fiscal year-end. Condition: The Center?s fiscal year 2023 operating budget was not submitted during the period under audit and prior year audited financial statements were not submitted to USDA until USDA requested them, which was subsequent to the submission timeframe. Cause: The Center has been providing reported as requested by USDA rather than as outlined in the Letter of Conditions. Effect: The required reports are either not submitted or submitted outside of the time frame in the Letter of Conditions. Questioned Costs: None reported Context/Sampling: Sampling was not used Repeat Finding from Prior Year: No Recommendation: Management should implement processes and controls relating to the reporting requirements to comply with the Letter of Conditions Response: Management agrees with the finding.
Finding 2022-002
2022-002 Department of Agriculture Federal Financial Assistance Listing/CFDA #10.766 Communities Facilities Loans and Grants Cluster Preparation of the Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance - Other Criteria: Proper controls over financial reporting include a system designed to prepare the schedule of expenditures of federal awards and the accompanying notes to the schedule of expenditures of federal awards. Condition: The Center does not have an internal control system designed to provide for the preparation of the schedule of expenditures of federal awards. As auditors, we were requested to assist with the preparation of the schedule of expenditures of federal awards. Cause: Auditor assistance with preparation of the schedule of expenditures of federal awards is not unusual in an organization the size of the Center. Effect: There is a reasonable possibility that the Center would not be able to draft a complete and accurate schedule of expenditures of federal awards. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes, 2021-002 Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, it is important that the Center is aware of this condition for financial reporting requirements relating to the Center?s schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-003
2022-003 Department of Agriculture Federal Financial Assistance Listing/CFDA 10.766 Communities Facilities Loans and Grants Cluster Reporting Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Center is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Section VI ? Conditions Required After Loan Closing in the Letter of Conditions dated May 4, 2016 for the USDA loan states that the audited financial statements must be provided to USDA within 150 days of year-end. In addition, the operating budget must be submitted to USDA within 30 days prior to the fiscal year-end. Condition: The Center?s fiscal year 2023 operating budget was not submitted during the period under audit and prior year audited financial statements were not submitted to USDA until USDA requested them, which was subsequent to the submission timeframe. Cause: The Center has been providing reported as requested by USDA rather than as outlined in the Letter of Conditions. Effect: The required reports are either not submitted or submitted outside of the time frame in the Letter of Conditions. Questioned Costs: None reported Context/Sampling: Sampling was not used Repeat Finding from Prior Year: No Recommendation: Management should implement processes and controls relating to the reporting requirements to comply with the Letter of Conditions Response: Management agrees with the finding.
Finding 2022-002
2022-002 Department of Agriculture Federal Financial Assistance Listing/CFDA #10.766 Communities Facilities Loans and Grants Cluster Preparation of the Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance - Other Criteria: Proper controls over financial reporting include a system designed to prepare the schedule of expenditures of federal awards and the accompanying notes to the schedule of expenditures of federal awards. Condition: The Center does not have an internal control system designed to provide for the preparation of the schedule of expenditures of federal awards. As auditors, we were requested to assist with the preparation of the schedule of expenditures of federal awards. Cause: Auditor assistance with preparation of the schedule of expenditures of federal awards is not unusual in an organization the size of the Center. Effect: There is a reasonable possibility that the Center would not be able to draft a complete and accurate schedule of expenditures of federal awards. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes, 2021-002 Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, it is important that the Center is aware of this condition for financial reporting requirements relating to the Center?s schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-003
2022-003 Department of Agriculture Federal Financial Assistance Listing/CFDA 10.766 Communities Facilities Loans and Grants Cluster Reporting Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Center is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Section VI ? Conditions Required After Loan Closing in the Letter of Conditions dated May 4, 2016 for the USDA loan states that the audited financial statements must be provided to USDA within 150 days of year-end. In addition, the operating budget must be submitted to USDA within 30 days prior to the fiscal year-end. Condition: The Center?s fiscal year 2023 operating budget was not submitted during the period under audit and prior year audited financial statements were not submitted to USDA until USDA requested them, which was subsequent to the submission timeframe. Cause: The Center has been providing reported as requested by USDA rather than as outlined in the Letter of Conditions. Effect: The required reports are either not submitted or submitted outside of the time frame in the Letter of Conditions. Questioned Costs: None reported Context/Sampling: Sampling was not used Repeat Finding from Prior Year: No Recommendation: Management should implement processes and controls relating to the reporting requirements to comply with the Letter of Conditions Response: Management agrees with the finding.
Finding 2022-002
2022-002 Department of Agriculture Federal Financial Assistance Listing/CFDA #10.766 Communities Facilities Loans and Grants Cluster Preparation of the Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance - Other Criteria: Proper controls over financial reporting include a system designed to prepare the schedule of expenditures of federal awards and the accompanying notes to the schedule of expenditures of federal awards. Condition: The Center does not have an internal control system designed to provide for the preparation of the schedule of expenditures of federal awards. As auditors, we were requested to assist with the preparation of the schedule of expenditures of federal awards. Cause: Auditor assistance with preparation of the schedule of expenditures of federal awards is not unusual in an organization the size of the Center. Effect: There is a reasonable possibility that the Center would not be able to draft a complete and accurate schedule of expenditures of federal awards. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes, 2021-002 Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, it is important that the Center is aware of this condition for financial reporting requirements relating to the Center?s schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-003
2022-003 Department of Agriculture Federal Financial Assistance Listing/CFDA 10.766 Communities Facilities Loans and Grants Cluster Reporting Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Center is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Section VI ? Conditions Required After Loan Closing in the Letter of Conditions dated May 4, 2016 for the USDA loan states that the audited financial statements must be provided to USDA within 150 days of year-end. In addition, the operating budget must be submitted to USDA within 30 days prior to the fiscal year-end. Condition: The Center?s fiscal year 2023 operating budget was not submitted during the period under audit and prior year audited financial statements were not submitted to USDA until USDA requested them, which was subsequent to the submission timeframe. Cause: The Center has been providing reported as requested by USDA rather than as outlined in the Letter of Conditions. Effect: The required reports are either not submitted or submitted outside of the time frame in the Letter of Conditions. Questioned Costs: None reported Context/Sampling: Sampling was not used Repeat Finding from Prior Year: No Recommendation: Management should implement processes and controls relating to the reporting requirements to comply with the Letter of Conditions Response: Management agrees with the finding.
Finding 2022-002
2022-002 Department of Agriculture Federal Financial Assistance Listing/CFDA #10.766 Communities Facilities Loans and Grants Cluster Preparation of the Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance - Other Criteria: Proper controls over financial reporting include a system designed to prepare the schedule of expenditures of federal awards and the accompanying notes to the schedule of expenditures of federal awards. Condition: The Center does not have an internal control system designed to provide for the preparation of the schedule of expenditures of federal awards. As auditors, we were requested to assist with the preparation of the schedule of expenditures of federal awards. Cause: Auditor assistance with preparation of the schedule of expenditures of federal awards is not unusual in an organization the size of the Center. Effect: There is a reasonable possibility that the Center would not be able to draft a complete and accurate schedule of expenditures of federal awards. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes, 2021-002 Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, it is important that the Center is aware of this condition for financial reporting requirements relating to the Center?s schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.
Finding 2022-003
2022-003 Department of Agriculture Federal Financial Assistance Listing/CFDA 10.766 Communities Facilities Loans and Grants Cluster Reporting Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over federal awards that provides reasonable assurance that the Center is managing the federal awards in compliance with federal statutes, regulations and terms and conditions of the federal award. Section VI ? Conditions Required After Loan Closing in the Letter of Conditions dated May 4, 2016 for the USDA loan states that the audited financial statements must be provided to USDA within 150 days of year-end. In addition, the operating budget must be submitted to USDA within 30 days prior to the fiscal year-end. Condition: The Center?s fiscal year 2023 operating budget was not submitted during the period under audit and prior year audited financial statements were not submitted to USDA until USDA requested them, which was subsequent to the submission timeframe. Cause: The Center has been providing reported as requested by USDA rather than as outlined in the Letter of Conditions. Effect: The required reports are either not submitted or submitted outside of the time frame in the Letter of Conditions. Questioned Costs: None reported Context/Sampling: Sampling was not used Repeat Finding from Prior Year: No Recommendation: Management should implement processes and controls relating to the reporting requirements to comply with the Letter of Conditions Response: Management agrees with the finding.
Finding 2022-002
2022-002 Department of Agriculture Federal Financial Assistance Listing/CFDA #10.766 Communities Facilities Loans and Grants Cluster Preparation of the Schedule of Expenditures of Federal Awards Material Weakness in Internal Control over Compliance - Other Criteria: Proper controls over financial reporting include a system designed to prepare the schedule of expenditures of federal awards and the accompanying notes to the schedule of expenditures of federal awards. Condition: The Center does not have an internal control system designed to provide for the preparation of the schedule of expenditures of federal awards. As auditors, we were requested to assist with the preparation of the schedule of expenditures of federal awards. Cause: Auditor assistance with preparation of the schedule of expenditures of federal awards is not unusual in an organization the size of the Center. Effect: There is a reasonable possibility that the Center would not be able to draft a complete and accurate schedule of expenditures of federal awards. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes, 2021-002 Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, it is important that the Center is aware of this condition for financial reporting requirements relating to the Center?s schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.