FAC Explorer

Finding 20389 (2022-005)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-28
Audit: 21564
Organization: Wickenburg Community Hospital (AZ)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: Management failed to submit the annual budget to the Rural Development Area Office within the required 30-day timeframe.
  • Impacted Requirements: Compliance with federal reporting requirements for budget submission is at risk, potentially leading to violations.
  • Recommended Follow-Up: Establish a process to ensure timely submission of the approved budget to USDA before the deadline.

Finding Text

2022-005 Department of Agriculture Federal Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Direct Loans Reporting Significant Deficiency in Internal Control Over Compliance Criteria: 30 days prior to the end of each fiscal year, a proposed operating budget and rate schedule for the coming fiscal year will be submitted to the Rural Development Area Office for approval. Condition: Management was unaware of the requirement to submit the annual proposed budget to the Rural Development Area Office within 30 days of each year end. The Hospital approves the budget annually. However, the budget is not submitted to USDA. Cause: Management was unaware of the budget reporting requirement. Effect: The Organization could be in violation of the reporting requirements if management is not monitoring compliance. Questioned Costs: None reported Context/Sampling: Sampling was not used. Reporting Finding from Prior Year: No Recommendation: We recommend management develop a process to ensure the annual approved budget is submitted to USDA prior to 30 days of year end to ensure compliance with the reporting requirements. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Finding 2022-005 Federal Agency Name: Department of Agriculture Program Name: Communities Facilities Loans and Grants Cluster Federal Assistance Listing #10.766 Compliance Requirement: Reporting Finding Summary: Management was unaware of the requirement to submit the annual proposed budget to the Rural Development Area Office within 30 days of each year end. The Hospital approves the budget annually. However, the budget is not submitted to USDA. Responsible Individuals: Patti Clavette, Chief Financial Officer; Jackie Lundblad, Chief Executive Officer Corrective Action Plan: Management will put a process in place to ensure the approved budget is submitted to USDA within 30 days of year end. Anticipated Completion Date: December 31, 2023

Categories

Student Financial Aid Subrecipient Monitoring Reporting Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 20390 2022-005
    Significant Deficiency
  • 20391 2022-006
    Significant Deficiency
  • 20392 2022-004
    Material Weakness Repeat
  • 596831 2022-005
    Significant Deficiency
  • 596832 2022-005
    Significant Deficiency
  • 596833 2022-006
    Significant Deficiency
  • 596834 2022-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $1.23M
93.697 Covid-19 Testing for Rural Health Clinics $300,000
10.766 Community Facilities Loans and Grants $224,964
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $23,932
93.301 Small Rural Hospital Improvement Grant Program $9,858