Finding 47044 (2022-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-29

AI Summary

  • Core Issue: The Hospital Authority of Jefferson County and The City of Louisville, Georgia failed to submit required reports to the USDA on time.
  • Impacted Requirements: Timely submission of annual budget, cash flow projections, quarterly reports, and audited financial statements as per the loan agreement.
  • Recommended Follow-Up: Establish a process to track and ensure timely filing of all required reports to meet USDA guidelines.

Finding Text

Conditions: The Hospital Authority of Jefferson County and The City of Louisville, Georgia did not timely submit its annual budget, projected cash flow, quarterly reports, and audited financial statements to the USDA. Criteria: The Hospital Authority of Jefferson County and The City of Louisville, Georgia is responsible for reporting to the USDA throughout the life of the loan, as specifically required within the Authority?s applicable agreement, via the RD 442-2, Statement of Budget, Income, and Equity report or other acceptable report. Cause: These reports are required to be submitted, as specified in the applicable loan agreement; however, management did not maintain a list of required reports to be submitted nor was there a process in place to ensure timely filing. Context: The reports were never specifically requested throughout the year by The Hospital Authority of Jefferson County and The City of Louisville, Georgia?s USDA representative, nor was the Authority notified of its tardy submission at any point during the fiscal year. The audited financial statements are available to the federal agency through The Hospital Authority of Jefferson County and The City of Louisville, Georgia website. Effect: The Hospital Authority of Jefferson County and The City of Louisville, Georgia did not follow the guidelines as laid out in the respective loan agreement for its reporting requirements. Questioned Costs: Not applicable. Recommendation: The Hospital Authority of Jefferson County and The City of Louisville, Georgia should continue to improve its understanding of the reporting requirements as specified in the applicable loan document and create a process to ensure reports are submitted in a timely manner. Views of Responsible Officials and Planned Corrective Actions: The Hospital Authority of Jefferson County and The City of Louisville, Georgia agrees with this finding. See management?s corrective action plan.

Corrective Action Plan

The Hospital Authority of Jefferson County and the City of Louisville, Georgia respectfully submits the following corrective action plan for the year ended December 31, 2022. The findings from the December 31, 2022 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FEDERAL AWARD PROGRAMS AUDIT FINDINGS Significant Deficiency (2022-003) Recommendation: The Hospital Authority of Jefferson County and the City of Louisville, Georgia should continue to improve its understanding of the reporting requirements as specified in the applicable loan document and create a process to ensure reports are submitted in a timely manner. Planned Corrective Action: The Hospital Authority of Jefferson County and the City of Louisville, Georgia will establish a calendar schedule of key dates and required reports. This Calendar will be managed by the Controller and reviewed by the Senior Vice President ? Chief Financial Officer. Reports not previously submitted timely have now been submitted.

Categories

Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 47045 2022-003
    Significant Deficiency
  • 623486 2022-003
    Significant Deficiency
  • 623487 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $2.56M
93.498 Covid-19 Provider Relief Fund $994,084
93.912 Covid-19 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $127,083
93.155 Covid-19 Rural Health Research Centers $125,617
93.697 Covid-19 Testing for Rural Health Clinics $102,596
93.461 Covid-19 Testing for the Uninsured $23,633