FAC Explorer

Audit 53708

FY End
2022-09-30
Total Expended
$871,198
Findings
2
Programs
4
Organization: Lynn County Hospital District (TX)
Year: 2022 Accepted: 2023-06-29
Auditor: Durbin & Compnay LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
46839 2022-004 Significant Deficiency - I
623281 2022-004 Significant Deficiency - I

Programs

ALN Program Spent Major Findings
10.855 Distance Learning and Telemedicine Loans and Grants $540,041 Yes 1
93.301 Covid-19 Small Rural Hospital Improvement Grant Program $255,561 - 0
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $64,627 - 0
93.301 Small Rural Hospital Improvement Grant Program $10,969 - 0

Contacts

Name Title Type
THQ8MQLTLZK3 Charles Anthony Brocato Auditee
8069984533 Aaron Milligan Auditor
No contacts on file

Notes to SEFA

Title: PERSONAL PROTECTIVE EQUIPMENT (PPE) (UNAUDITED) Accounting Policies: Expenditures reported on the SEFA 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 allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. For the year ended September 30, 2022, the District received $-0- in federally donated personal protective equipment in response to the COVID-19 pandemic (unaudited).
Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the SEFA 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 allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the SEFA) includes the federal award activity of Lynn County Hospital District (the District), under programs of the federal government for the year ended September 30, 2022. The information in the SEFA 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 SEFA presents only a selected portion of the operations of the District, it is not intended to and does not present the financial position, revenues, expenses, and changes in net position, or cash flows of the District.
Title: SUBRECIPIENTS Accounting Policies: Expenditures reported on the SEFA 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 allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The District did not provide any federal awards to subrecipients during the year ended September 30, 2022.

Finding Details

Finding 2022-004
U.S. Department of Agriculture Distance Learning and Telemedicine Grant Program Assistance Listing Number: 10.855 Grant Number: TX0787-A67 Grant Period: Year Ended September 30, 2022 Criteria: Under 2 CFR Section 200.303(a) and 2 CFR Section 180, Subpart C, non-federal entities must establish and maintain effective internal controls to provide reasonable assurance that the entity is managing the federal awards in compliance with statutes, regulations, and the terms and conditions of the federal award. Condition: The District does not have documented controls to prevent purchases using federal funds from suspended or debarred vendors. Cause: While the District has policies and procedures for procurement, these do not encompass verifying that the potential vendor is suspended or debarred from receiving federal funding as required under 2 CFR Section 180, Subpart C. Effect: Purchases from suspended or debarred vendors would result in disallowed costs, and the federal funds would be required to be returned to the funding agency. Questioned Costs: None Perspective: Because a formal policy is not established, the one vendor meeting the threshold was not subjected to suspension and debarment testing by the District. Recommendation: The District should establish procedures to ensure that controls related to suspension and debarment are continuously implemented and that all written records are maintained to support that the compliance requirement is met. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding, and procurement policies and procedures will be updated to include a control to verify that a vendor is not suspended or debarred.
Finding 2022-004
U.S. Department of Agriculture Distance Learning and Telemedicine Grant Program Assistance Listing Number: 10.855 Grant Number: TX0787-A67 Grant Period: Year Ended September 30, 2022 Criteria: Under 2 CFR Section 200.303(a) and 2 CFR Section 180, Subpart C, non-federal entities must establish and maintain effective internal controls to provide reasonable assurance that the entity is managing the federal awards in compliance with statutes, regulations, and the terms and conditions of the federal award. Condition: The District does not have documented controls to prevent purchases using federal funds from suspended or debarred vendors. Cause: While the District has policies and procedures for procurement, these do not encompass verifying that the potential vendor is suspended or debarred from receiving federal funding as required under 2 CFR Section 180, Subpart C. Effect: Purchases from suspended or debarred vendors would result in disallowed costs, and the federal funds would be required to be returned to the funding agency. Questioned Costs: None Perspective: Because a formal policy is not established, the one vendor meeting the threshold was not subjected to suspension and debarment testing by the District. Recommendation: The District should establish procedures to ensure that controls related to suspension and debarment are continuously implemented and that all written records are maintained to support that the compliance requirement is met. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding, and procurement policies and procedures will be updated to include a control to verify that a vendor is not suspended or debarred.