Finding 22731 (2022-004)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-04-06
Audit: 18363
Organization: Baraga County Memorial Hospital (MI)
Auditor: Wipfli LLP

AI Summary

  • Core Issue: The Organization has a payment of $49,386 from an affiliate that is over 90 days old, violating federal cash disbursement requirements.
  • Impacted Requirements: Compliance with the rule that payments for services to affiliates must be made within 90 days.
  • Recommended Follow-Up: Management should establish controls to ensure timely payments and has committed to implementing a new process for compliance.

Finding Text

Repeat Finding: No; Program Name/CFDA Title: Mortgage Insurance for Hsopitals; CFDA Number: 14.128; Federal Agency: U.S. Department of Housing and Urban Development; Type of Finding: Noncompliance, Significant Deficiency; Compliance Requirement: Cash Disbursements; Condition: The Organization has amount due from affiliate of $49,386 over 90 days old as of September 30, 2022; Criteria: Payment for any service provided to an affiliate must be received within 90 days; Cause: The Hospital has an amount due from Bayside Village over 90 days old as of year-end due to cashflow issues at Bayside Village; Effect: The Organization is not incompliance with federal regulations and guidelines; Recommendation: Management should implement controls that provide reasonable assurance that payments for any service provided to an affiliate is received within 90 days; View of Responsible Officials: Management will implement a process to ensure that payments for any service provided to an affiliate are reimbursed within 90 days.

Corrective Action Plan

Finding # 2022-004 (Internal Controls over Cash Disbursements). Response: Management will implement controls and process to ensure that payments for any services provided to an affiliate are reimbursed within 90 days going forward. Responsible Party: Gail Jestila, CFO at Baraga County Memorial Hospital. Estimated Completion: 09/30/2023

Categories

HUD Housing Programs Significant Deficiency

Other Findings in this Audit

  • 22732 2022-005
    Significant Deficiency
  • 599173 2022-004
    Significant Deficiency
  • 599174 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.128 Mortgage Insurance_hospitals $21.61M
93.155 Rural Health Research Centers $257,853
93.498 Provider Relief Fund $189,997
93.697 Covid-19 Testing for Rural Health Clinics $100,000
93.301 Small Rural Hospital Improvement Grant Program $11,679