FAC Explorer

Finding 28759 (2022-003)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-01-16
Audit: 28845
Organization: Eureka Community Health Services (SD)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The Organization lacks a proper internal control system for preparing the Schedule of Expenditures of Federal Awards.
  • Impacted Requirements: Compliance with financial reporting standards is compromised, increasing the risk of inaccuracies in the schedule.
  • Recommended Follow-Up: Management should enhance awareness of financial reporting requirements and strengthen internal controls related to the schedule preparation.

Finding Text

2022-003 Department of Agriculture Federal Financial Assistance Listing #10.766 Communities Facilities Loans and Grants Cluster Preparation of the Schedule of Expenditures of Federal Awards Material Weakness in Internal Control Over Compliance Criteria: Proper controls over financial reporting include a system designed to prepare the schedule of expenditures of federal awards (the schedule) and the accompanying notes to the schedule. Condition: The Organization does not have an internal control system designed to provide for the preparation of the schedule. As auditors, we were requested to assist with the preparation of the schedule. Cause: Auditor assistance with preparation of the schedule is not unusual as the schedule has unique and specialized requirement and preparation is only required when the Organization meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Organization would not be able to draft a complete and accurate schedule that is correct without the assistance of the auditors. Questioned Costs: None reported Context: Sampling was not used. Repeat Finding from Prior Years: Yes, prior year finding 2021-003. Recommendation: While we recognize that this condition is not unusual for an organization with limited staffing, we recommend management be aware of the financial reporting requirements relating to the Organization?s schedule of expenditures of federal awards and the internal controls that impact financial reporting. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Finding: 2022-003 Federal Agency name: Department of Agriculture Program Name: Communities Facilities Loans and Grants Cluster Federal Financial Assistance Listing: #10.766 Compliance Requirement: Preparation of the Schedule of Expenditures of Federal Awards Finding Summary: The Organization does not have an internal control system designed to provide for the preparation of the schedule. We requested that our auditors assist with the preparation of the schedule. Responsible Individuals: Carmen Weber, Administrator and Joyce Schwingler, CFO Corrective Action Plan: It is not cost effective to have an internal control system designed to provide for the preparation of the schedule. We requested that our auditors, Eide Bailly LLP, prepared the schedules as part of their annual audit. We have designated a member of management to review the drafted schedules, and we agree with the schedule. Anticipated Completion Date: Ongoing

Categories

Reporting Material Weakness Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 28758 2022-005
    Material Weakness
  • 28760 2022-004
    Material Weakness
  • 28761 2022-005
    Material Weakness
  • 28762 2022-003
    Material Weakness Repeat
  • 28763 2022-004
    Material Weakness
  • 28764 2022-005
    Material Weakness
  • 28765 2022-003
    Material Weakness Repeat
  • 28766 2022-004
    Material Weakness
  • 28767 2022-005
    Material Weakness
  • 28768 2022-003
    Material Weakness Repeat
  • 28769 2022-004
    Material Weakness
  • 28770 2022-005
    Material Weakness
  • 28771 2022-003
    Material Weakness Repeat
  • 28772 2022-004
    Material Weakness
  • 605200 2022-005
    Material Weakness
  • 605201 2022-003
    Material Weakness Repeat
  • 605202 2022-004
    Material Weakness
  • 605203 2022-005
    Material Weakness
  • 605204 2022-003
    Material Weakness Repeat
  • 605205 2022-004
    Material Weakness
  • 605206 2022-005
    Material Weakness
  • 605207 2022-003
    Material Weakness Repeat
  • 605208 2022-004
    Material Weakness
  • 605209 2022-005
    Material Weakness
  • 605210 2022-003
    Material Weakness Repeat
  • 605211 2022-004
    Material Weakness
  • 605212 2022-005
    Material Weakness
  • 605213 2022-003
    Material Weakness Repeat
  • 605214 2022-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.155 Rural Health Research Centers $117,705
93.697 Covid-19 Testing for Rural Health Clinics $82,330
10.766 Community Facilities Loans and Grants $56,854
93.301 Small Rural Hospital Improvement Grant Program $12,836
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $10,863
93.889 National Bioterrorism Hospital Preparedness Program $6,905