FAC Explorer

Audit 395218

FY End
2025-06-30
Total Expended
$62.72M
Findings
1
Programs
3
Organization: Uintah Basin Medical Center (UT)
Year: 2025 Accepted: 2026-03-27
Auditor: DZA PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1190944 2025-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $62.62M Yes 1
93.391 ACTIVITIES TO SUPPORT STATE, TRIBAL, LOCAL AND TERRITORIAL (STLT) HEALTH DEPARTMENT RESPONSE TO PUBLIC HEALTH OR HEALTHCARE CRISES $90,000 Yes 0
93.301 SMALL RURAL HOSPITAL IMPROVEMENT GRANT PROGRAM $12,077 Yes 0

Contacts

Name Title Type
Q1NBBN27QBG3 Brent Hales Auditee
4357226164 Luke Zarecor Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Uintah Basin Medical Center (the Medical Center) under programs of the federal government for the year ended June 30, 2025. 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). Because the Schedule presents only a selected portion of the operations of the Medical Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Medical Center.
Included in the accompanying Schedule are funds spent on the construction of hospital facilities in Roosevelt and Vernal, Utah. The construction was funded by interim financing from Zion Bank. United States Department of Agriculture Rural Development Direct Loans and a guaranteed loan repaid the interim financing on July 26, 2024. The related loan balances of the direct loans at June 30, 2025 was $55,646,503. The loan guarantee balance at June 30, 2025, was $6,128,621, of which $5,515,759 (90 percent) was guaranteed.

Finding Details

Finding 2025-001
Section III ‒ Federal Award Findings and Questioned Costs 2025-001 – Policies and Procedures for United Stated Department of Agriculture Reserve Funds Federal Agency United Stated Department of Agriculture (USDA) Federal Assistance Listing Number 10.766 – Community Facilities Loans and Grants Federal Award Identification Number Not available Federal Award Years 2018-2059 Criteria [ ] Compliance Finding [ ] Significant Deficiency [X] Material Weakness The Medical Center should maintain written policies and procedures for the correct funding of required reserve accounts to ensure compliance with relevant requirements. These policies should also document how the reserve funds may be spent. Condition The Medical Center did not have written policies and procedures for the reserve accounts required by the USDA. Context This finding appears to be an isolated instance. Effect There is a risk that the Hospital may not be in compliance with the requirements of the USDA loan agreements. Cause The Medical Center did not develop written policies and procedures over relevant internal controls. Recommendation We recommend the Medical Center create policies and procedures addressing the USDA reserve account compliance requirements. Views of responsible officials and planned corrective actions We recognize the importance of maintaining formal, written policies and procedures to ensure consistent compliance with USDA reserve account requirements and to provide clear guidance on the authorized use of these funds.