FAC Explorer

Audit 9749

FY End
2023-06-30
Total Expended
$6.03M
Findings
4
Programs
5
Organization: Platte Health Center (SD)
Year: 2023 Accepted: 2024-01-05
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
7516 2023-003 Material Weakness Yes N
7517 2023-003 Material Weakness Yes N
583958 2023-003 Material Weakness Yes N
583959 2023-003 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $1.79M Yes 1
93.498 Covid-19 Provider Relief Fund $362,689 - 0
93.697 Covid-19 Testing for Rural Health Clinics $153,603 - 0
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $65,529 - 0
93.301 Small Rural Hospital Improvement Grant Program $13,011 - 0

Contacts

Name Title Type
PWTLWEPNV5F6 Vicki Jensen Auditee
6053373364 Joy Feige Auditor
No contacts on file

Notes to SEFA

Title: Community Facilities Loans Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Platte Community Memorial Hospital, Inc. d/b/a Platte Health Center, Inc. (Health Center) under programs of the federal government for the year ended June 30, 2023. 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 Health Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Health Center. Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Health Center does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. Expenditures reported in this schedule consist of the beginning of the year outstanding loan balance for the direct loan and 90% of the beginning of year outstanding loan balance for the guaranteed loan. There were no loan advances during the year ended June 30, 2023. The outstanding balances at June 30, 2023 were $3,562,768 for the direct USDA loan and $1,668,098 for the bank loan, of which USDA has guaranteed 90% of the loan balance.
Title: Provider Relief Funds and American Rescue Plan (ARP) Rural Distribution Accounting Policies: The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity of Platte Community Memorial Hospital, Inc. d/b/a Platte Health Center, Inc. (Health Center) under programs of the federal government for the year ended June 30, 2023. 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 Health Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Health Center. Expenditures reported on the schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Health Center does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. The Health Center received amounts from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) program (Federal Financial Assistance Listing #93.498) in the amount of $4,310,596, excluding interest income. In accordance with the 2023 compliance supplement, the PRF expenditures recognized on the schedule are based on the reporting to HHS for Period 4, defined as payments received during July 1, 2021 to December 31, 2021 plus interest earned of $1,055, and Period 5, defined as payments received during January 1, 2022 to June 30, 2022, as required under the PRF program. The Health Center did not receive funding during Period 5. The PRF expenditures are not recognized on the schedule until the expenditures are included in the reporting to HHS as required under the PRF program. The following summarizes the Provider Relief Funds and the timing of when the amounts were recognized in the financial statements. (See Table in the report)

Finding Details

Finding 2023-003
2023-003 United States Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Special Test and Provisions Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. The commitment letter for the term loan with the bank requires debt service coverage ratio and working capital calculations to be calculated yearly using audited financial statements. Condition: Management does not have controls in place to ensure compliance with the requirements as they have not been calculating or monitoring the required ratios internally. Cause: The Health Center was relying on the annual calculations performed by the audit team. Effect: The Health Center could be in violation of the debt coverage ratio and working capital requirements if management is not monitoring compliance. Questioned Costs: None reported Context/Sampling: Sampling was not used Repeat Finding from Prior Year: Yes, Finding 2022-003 Recommendation: We recommend management implement processes and controls to monitor the debt service coverage ratio and working capital calculations as a part of their year-end close process to ensure all covenants of the loan are met. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-003
2023-003 United States Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Special Test and Provisions Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. The commitment letter for the term loan with the bank requires debt service coverage ratio and working capital calculations to be calculated yearly using audited financial statements. Condition: Management does not have controls in place to ensure compliance with the requirements as they have not been calculating or monitoring the required ratios internally. Cause: The Health Center was relying on the annual calculations performed by the audit team. Effect: The Health Center could be in violation of the debt coverage ratio and working capital requirements if management is not monitoring compliance. Questioned Costs: None reported Context/Sampling: Sampling was not used Repeat Finding from Prior Year: Yes, Finding 2022-003 Recommendation: We recommend management implement processes and controls to monitor the debt service coverage ratio and working capital calculations as a part of their year-end close process to ensure all covenants of the loan are met. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-003
2023-003 United States Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Special Test and Provisions Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. The commitment letter for the term loan with the bank requires debt service coverage ratio and working capital calculations to be calculated yearly using audited financial statements. Condition: Management does not have controls in place to ensure compliance with the requirements as they have not been calculating or monitoring the required ratios internally. Cause: The Health Center was relying on the annual calculations performed by the audit team. Effect: The Health Center could be in violation of the debt coverage ratio and working capital requirements if management is not monitoring compliance. Questioned Costs: None reported Context/Sampling: Sampling was not used Repeat Finding from Prior Year: Yes, Finding 2022-003 Recommendation: We recommend management implement processes and controls to monitor the debt service coverage ratio and working capital calculations as a part of their year-end close process to ensure all covenants of the loan are met. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-003
2023-003 United States Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Special Test and Provisions Material Weakness in Internal Control over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. The commitment letter for the term loan with the bank requires debt service coverage ratio and working capital calculations to be calculated yearly using audited financial statements. Condition: Management does not have controls in place to ensure compliance with the requirements as they have not been calculating or monitoring the required ratios internally. Cause: The Health Center was relying on the annual calculations performed by the audit team. Effect: The Health Center could be in violation of the debt coverage ratio and working capital requirements if management is not monitoring compliance. Questioned Costs: None reported Context/Sampling: Sampling was not used Repeat Finding from Prior Year: Yes, Finding 2022-003 Recommendation: We recommend management implement processes and controls to monitor the debt service coverage ratio and working capital calculations as a part of their year-end close process to ensure all covenants of the loan are met. Views of Responsible Officials: Management agrees with the finding.