EIN: 480858197
UEI: ND1HM7WQCHS9
Data as of August 27, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on October 19, 2022. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by April 19, 2023 (1227 days ago).
What is a management decision? →Finding 2022-01 Material Weakness U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Assistance Listing No. 93.244 Health Center Program Cluster Criteria On May 1, 2012, the Health Resources and Services Administration (HRSA) awarded a grant to SHEF. The grant provided capital development funds for building constrction at 651 E. Prescott, Salina, Kansas. A Notice of Federal Interest was recorded with the Salina County, Kansas, Register of Deeds on May 30, 2012, relating to property owned by SHEF. This notice restricts the property from being mortgaged or otherwise used as collateral on any debt without the written approval of HRSA. Condition On May 17, 2022, SHEF entered into a promissory note with a financial institution with the property at 651 E. Prescott, Salina, Kansas, used as collateral. SHEF did not obtain written approval from HRSA. Cause SHEF management was aware of the need for HRSA approval for a sale or other disposition but did not verify that HRSA approval was needed to use the property as collateral. Potential Effect and Context Property with a federal interest could be inappropriately used to satisfy a mortgage in default. Recommendations We recommend that SHEF contact HRSA to inform HRSA of the matter, and that the promissory note be modified to remove the property at 651 E. Prescott, Salina, Kansas, as collateral. In addition, we recommend that management develop and implement a procedure to review any property liens or other restrictions when property is considered for collateral. View of Responsible Officials Once SHEF learned of this matter, the CFO took immediate action to notify HRSA and make arrangements with the financial institution to remove the property at 651 E. Prescott, Salina, Kansas, as collateral on the promissory note. Management will develop and implement a procedure to review any property liens or other restrictions when property is considered collateral.
Show full finding ▾Hide full finding ▴Finding 2022-01 Material Weakness U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Assistance Listing No. 93.244 Health Center Program Cluster Criteria On May 1, 2012, the Health Resources and Services Administration (HRSA) awarded a grant to SHEF. The grant provided capital development funds for building constrction at 651 E. Prescott, Salina, Kansas. A Notice of Federal Interest was recorded with the Salina County, Kansas, Register of Deeds on May 30, 2012, relating to property owned by SHEF. This notice restricts the property from being mortgaged or otherwise used as collateral on any debt without the written approval of HRSA. Condition On May 17, 2022, SHEF entered into a promissory note with a financial institution with the property at 651 E. Prescott, Salina, Kansas, used as collateral. SHEF did not obtain written approval from HRSA. Cause SHEF management was aware of the need for HRSA approval for a sale or other disposition but did not verify that HRSA approval was needed to use the property as collateral. Potential Effect and Context Property with a federal interest could be inappropriately used to satisfy a mortgage in default. Recommendations We recommend that SHEF contact HRSA to inform HRSA of the matter, and that the promissory note be modified to remove the property at 651 E. Prescott, Salina, Kansas, as collateral. In addition, we recommend that management develop and implement a procedure to review any property liens or other restrictions when property is considered for collateral. View of Responsible Officials Once SHEF learned of this matter, the CFO took immediate action to notify HRSA and make arrangements with the financial institution to remove the property at 651 E. Prescott, Salina, Kansas, as collateral on the promissory note. Management will develop and implement a procedure to review any property liens or other restrictions when property is considered collateral.
Finding 2022-001 Material Weakness U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES Assistance Listing No. 93.244 Health Center Program Cluster Recommendations We recommend that SHEF contact HRSA to inform HRSA of the matter, and that the promissory note be modified to remove the property at 651 E. Prescott, Salina, Kansas, as collateral. in addition, we recommend that management develop and implement a procedure to review any property liens or other restrictions when property is considered for collateral. View of Responsible Officials Once SHEF learned of this matter, the CFO took immediate action to notify HRSA and make arrangements with the financial institution to remove the property at 651 E. Prescott, Salina, Kansas, as collateral on the promissory note. Management will develop and implement a procedure to review any property liens or other restrictions when property is considered for collateral.
FAC accepted this audit on October 16, 2016 — management decision was due April 16, 2017.
GSA_MIGRATION
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Show full finding ▾Hide full finding ▴Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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