FAC Explorer

Audit 54105

FY End
2022-06-30
Total Expended
$33.24M
Findings
2
Programs
3
Organization: Morgan County Hospital Authority (GA)
Year: 2022 Accepted: 2023-03-30
Auditor: Draffin & Tucker LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
62417 2022-005 Significant Deficiency - L
638859 2022-005 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $33.07M Yes 1
93.461 Covid-19 Testing for the Uninsured $161,292 - 0
93.301 Small Rural Hospital Improvement Grant Program $10,000 - 0

Contacts

Name Title Type
HAYNQ9ML3Z85 Kyle Wilkinson Auditee
7063421667 Jimmie Richter Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Morgan County Hospital Authority (Authority) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with 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 Authority, it is not intended to and does not present the financial position, change in net position, or cash flows of the Authority. Expenditures reported on the Schedule are reported on the accrual basis of accounting which is consistent with the preparation of the Authority's financial statements. 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. Federal expenditures under loan programs include any new loans made during the year and loans outstanding at the beginning of the year for which there are continuing compliance requirements. There were no new loans for the year ended June 30, 2022. The balance of the loan outstanding as of June 30, 2022 is $31,985,930.
Title: Non-cash Awards Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Morgan County Hospital Authority (Authority) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with 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 Authority, it is not intended to and does not present the financial position, change in net position, or cash flows of the Authority. Expenditures reported on the Schedule are reported on the accrual basis of accounting which is consistent with the preparation of the Authority's financial statements. 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 Authority did not have any non-cash awards during the fiscal year.
Title: Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Morgan County Hospital Authority (Authority) under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with 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 Authority, it is not intended to and does not present the financial position, change in net position, or cash flows of the Authority. Expenditures reported on the Schedule are reported on the accrual basis of accounting which is consistent with the preparation of the Authority's financial statements. 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. There were no awards passed through to subrecipients.

Finding Details

Finding 2022-005
Condition: The Authority did not submit its annual budget and projected cashflow to the USDA. In addition, the Authority did not submit two of its quarterly reports. Criteria: The Authority is responsible for reporting to the USDA throughout the life of the loan, as specifically required within the Authority?s applicable agreement, via the RD 442-2, Statement of Budget, Income, and Equity report or other acceptable report. Cause: These reports are required to be submitted, as specified in the applicable loan agreement, however, management did not maintain a list of required reports to be submitted nor was there a process in place to ensure timely filing. Context: The reports were never specifically requested throughout the year by the Authority?s USDA representative, nor was the Authority notified of its tardy submission at any point during the fiscal year. Effect: The Authority did not follow the guidelines as laid out in the respective loan agreement for its reporting requirements. Questioned Costs: Not applicable. Recommendation: The Authority should continue to improve its understanding of the reporting requirements as specified in the applicable loan document and create a process to ensure reports are submitted in a timely manner. Views of Responsible Officials and Planned Corrective Actions: The Authority agrees with this finding. See management?s corrective action plan.
Finding 2022-005
Condition: The Authority did not submit its annual budget and projected cashflow to the USDA. In addition, the Authority did not submit two of its quarterly reports. Criteria: The Authority is responsible for reporting to the USDA throughout the life of the loan, as specifically required within the Authority?s applicable agreement, via the RD 442-2, Statement of Budget, Income, and Equity report or other acceptable report. Cause: These reports are required to be submitted, as specified in the applicable loan agreement, however, management did not maintain a list of required reports to be submitted nor was there a process in place to ensure timely filing. Context: The reports were never specifically requested throughout the year by the Authority?s USDA representative, nor was the Authority notified of its tardy submission at any point during the fiscal year. Effect: The Authority did not follow the guidelines as laid out in the respective loan agreement for its reporting requirements. Questioned Costs: Not applicable. Recommendation: The Authority should continue to improve its understanding of the reporting requirements as specified in the applicable loan document and create a process to ensure reports are submitted in a timely manner. Views of Responsible Officials and Planned Corrective Actions: The Authority agrees with this finding. See management?s corrective action plan.