FAC Explorer

Audit 407327

FY End
2025-12-31
Total Expended
$29.50M
Findings
1
Programs
1
Organization: Western Missouri Medical Center (MO)
Year: 2025 Accepted: 2026-07-16
Auditor: WENDLING NOE NELSON & JOHNSON LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1223913 2025-002 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $29.50M Yes 1

Contacts

Name Title Type
HG57GTLJW9N7 Lacey Bredehoeft-Fiene Auditee
6602627311 Cameron Werth Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant award activity of Western Missouri Medical Center (the Medical Center) under programs of the federal government for the year ended December 31, 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 position, or cash flows of the Medical Center.
Expenditures on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available.
The Medical Center does not draw indirect costs and has not elected to use the de minimis cost rate.
Expenditures on the Schedule consist of the beginning of the year outstanding loan balances plus advances made on the loans during the year. The balance of loans outstanding as of December 31, 2025, was $27,708,915.

Finding Details

Finding 2025-002
Identification: 10.766 United States Department of Agriculture (USDA), Community Facilities Loans and Grants; Noncompliance Finding; Special Tests and Provisions Compliance Requirement Criteria: The USDA direct loan and guaranteed loan were entered into in 2010 for renovation of the Medical Center's healthcare facility. One direct loan and one guaranteed loan were received. In connection with the loans, the Medical Center entered into the 2010 bond trust indenture and agreed to the letter of conditions dated November 30, 2009, set forth by the USDA which the Medical Center is required to follow. Section 506 of the 2010 bond trust indenture states the facility shall maintain a balance of days cash on hand of not less than 75 days. Condition: The Medical Center did not meet the days cash on hand ratio for the year ended December 31, 2025. Cause: The Medical Center did not obtain operational results such that the financial liquidity and cash generation was sufficient to meet the days cash on hand ratio. Effect: The Medical Center is not complying with Section 506 of the 2010 bond indenture. Questioned Costs: None Perspective Information: We performed an independent computation of the Medical Center's days cash on hand ratio. The results of our independent computations indicate the covenant was not met. Repeat Finding: Yes, 2024‐001 Recommendations: We recommend that the Medical Center review Section 506 of the 2010 bond trust indenture which outlines the required steps and notify the bond trustee that the days cash on hand ratio was not met. Views from Responsible Officials: The Medical Center notified the bond trustee in May 2026 that the days cash on hand ratio was not met for the year ended December 31, 2025, and will follow up with the bond trustee following completion of the audit regarding the necessary steps to take as outlined in the bond trust indenture.