Finding Text
Finding: 2023-005 Reporting requirements
Program Name Title: Community Facilities Loans and Grants
Federal Assistance Listing Number: 10.766
Federal Agency: U.S. Department of Agriculture
Type of Finding: Noncompliance, Material weakness
Compliance Requirement: Reporting
Repeat Finding: Yes
Questioned Cost: None
Criteria: Under the terms and conditions of the award, the recipient certifies it will provide quarterly financial information, the annual budget, annual financial statements, annual Medicare cost report, and annual debt service reserve calculation to the USDA and the interim financing lender.
Condition: The Hospital did not send the annual debt service reserve calculation to the USDA.
Cause: The Hospital did not have policies or procedures in place surrounding the required reporting. The Hospital also had turnover in management and has been navigating through a financial crisis.
Effect: The Hospital was out of compliance with the terms and conditions of the award during 2023.
Recommendation: We recommend management implement policies and procedures surrounding the reporting required under the USDA loan program as well as provide the required reports on a timely basis to all respective parties.
View of Responsible Officials: Management agrees with the finding.