FAC Explorer

Audit 409157

FY End
2025-12-31
Total Expended
$14.34M
Findings
1
Programs
4
Organization: Winner Regional Healthcare Center (SD)
Year: 2025 Accepted: 2026-08-14
Auditor: EIDE BAILLY LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1226975 2025-004 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $14.30M Yes 1
93.301 SMALL RURAL HOSPITAL IMPROVEMENT GRANT PROGRAM $13,832 Yes 0
10.557 WIC SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN $13,547 Yes 0
93.217 FAMILY PLANNING SERVICES $12,522 Yes 0

Contacts

Name Title Type
PRPBMBN2Y1J3 Mari Chambers Auditee
6058427100 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 Winner Regional Healthcare Center (the Center) under programs of the federal government for the year ended December 31, 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 Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Center.
Expenditures reported in the schedule under the Community Facilities Loans and Grants consist of the beginning of the year outstanding balance for the direct loan plus advances during the year. There were no loan advances during the year ended December 31, 2025. The outstanding balance at December 31, 2025 is $13,949,406 for the direct USDA loan.
Federal reimbursements for the WIC Special Supplemental Nutrition Program for Women, Infants, and Children Federal Financial Assistance Listing #10.557 are not based upon specific expenditures. Therefore, the amounts reported in the schedule represent cash received rather than federal expenditures.

Finding Details

Finding 2025-004
United States Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Special Tests and Provisions Significant Deficiency in Internal Control over Compliance Criteria: The Center must establish and maintain effective internal control over the reserve fund account that is maintained in accordance with the loan resolution dated and the workout agreement. The Loan Resolution Security Agreement requires a monthly amount to be set aside in a reserve fund until the specified account balance is reached. During 2025, a Community Programs Workout Agreement was signed allowing for withdrawals from April 2025 through November 2025 totaling $61,375 to be utilized to make monthly mortgage payments with monthly deposits of $11,000 to be resumed in December 2025 until the specified account balance is reached. Condition: For eight of the twelve months, the Center did not document an independent review of the monthly reserve fund account balance as compared to the required minimum balance. Cause: The Center did not present the balance of the reserve account or compliance of the reserve account per the Loan Resolution Security Agreement or the Community Programs Workout Agreement for balances during January through August. Effective September, the balance of the reserve account, minimum required reserve balance and compliance of the reserve was presented to the board with formal documentation of review and approval being retained. Effect: With no formal review or approval in place for eight of twelve months, the risk increases for employees participating in the federal award administration to not detect and correct noncompliance in a timely manner. Questioned Costs: None reported. The required reserve balance was appropriately funded as of December 31, 2025. Context/Sampling: Sampling was not used. Repeat Finding from Prior Years: Yes, prior year finding 2024-004. Recommendation: No recommendations at this time as management properly implemented a process of review and approval over the required reserve balance effective September 2025. Views of Responsible Officials: Management agrees with the finding.