Finding 1161858 (2023-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-11-04

AI Summary

  • Core Issue: The Hospital failed to submit required financial reports on time for the fiscal year ending June 30, 2023.
  • Impacted Requirements: This includes quarterly income and expense statements, annual financial reports, and compliance with 2 CFR Part 200 for loan balances over $750,000.
  • Recommended Follow-up: The Hospital should establish clear policies and procedures to ensure timely and accurate reporting in the future.

Finding Text

REPORTING: Criteria – Quarterly Income and Expense Statements and an Annual Financial Reporting and Projected Cash Flow need to be completed accurately and timely submitted to the U.S. Department of Agriculture. Also, in accordance with 2 CFR Part 200, loan balances in excess of $750,000 (beginning year balance plus any additional loans issued in a year) must be included in the Schedule of Federal Awards and must meet continuing Single Audit requirements. Condition – The Hospital did not submit any of the required reporting in a timely manner for the fiscal year ended June 30, 2023. Cause – The Hospital does not have established procedures and policies for management oversight of the reporting requirements to ensure all reports are accurately and timely filed. Effect – The Hospital was not in compliance with required provisions of the Federal program. Recommendation – The Hospital should implement proper policies and procedure to ensure the reporting requirements are being met in the future. Client Response – We will implement procedures to comply with all reporting requirements. Conclusion – Response accepted.

Corrective Action Plan

We have implemented procedures to ensure we are in compliance with all reporting requirements. Individuals have been assigned to be responsible for the preparation and submission of reports. The Board has implemented procedures to monitor the compliance and communicate the procedures to new members.

Categories

Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 1161859 2023-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $16.10M