Finding 974631 (2022-005)

U.S. Department of Agricultures Federal Assistance Listing #10.766 Community Facilities Loan and Grant Cluster Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria: Under the terms and conditions of the award, the recipient certifies it will provide quarterly financial information, the annual budget, annual financial statements, annual Medicare cost report, and annual debt service reserve calculation to the United States Department of Agriculture and the interim financing lender. Condition: The Hospital did not submit the quarterly reports for 2022 to the United States Department of Agriculture and the interim financing lender and did not send the annual budget, financial statements, cost report, and debt service reserve calculation to the United States Department of Agriculture. Cause: The Hospital did not have policies or procedures in place surrounding the required reporting. The Hospital also had turnover in management, and the interim management personnel was not aware of all reporting requirements. Effect: The Hospital was out of compliance with the terms and conditions of the award during 2022. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes Recommendation: We recommend management implement policies and procedures surrounding the reporting required under the United States Department of Agriculture loan program as well as provide the required reports on a timely basis to all respective parties. Views of Responsible Officials: Management agrees with the finding.