Finding Text
Reporting
Material Weakness in Internal Control Over Compliance and Material Noncompliance
Criteria – 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control
over the federal award that provides assurance that the entity is managing the federal award in compliance with
federal statutes, regulations, terms and conditions of the federal award. Section 5 of the Loan Resolution
Security Agreement requires annual audited financial statements to be submitted.
Condition – The Hospital did not provide audited financial statements as required to the Department of
Agriculture within the required timeframe. The fiscal years 2020, 2021 and 2022 audit report have not been
submitted to the federal agency.
Cause – The Hospital did not have an internal control process in place to ensure the audited financial statements
were submitted to the Department of Agriculture within the timeframe established in the Letter(s) of
Conditions.
Effect – The required audited financial statements were not submitted by the requested date.
Questioned Costs – None reported.
Context/Sampling – Sampling was not used.
Repeat Finding from Prior Years: No.
Recommendation – We recommend the Hospital implement procedures to ensure the required reporting is
submitted to the Department of Agriculture within the timeframe established in the Letter(s) of Conditions and
in accordance with the requirements of the Loan Resolution Security Agreement.
Views of Responsible Officials – Management agrees with the finding.