Minneola District Hospital No. 2

EIN: 486088051

UEI: EDJJSV6A9BF4

Data as of August 27, 2026

Minneola District Hospital No. 27 audit years3 findings1 repeat
7
Audit Years
3
Total Findings
1
Repeat Findings

FY 2023-12-31

Management decision deadline — for entities that funded this organization

The FAC accepted this audit on November 4, 2024. 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 May 4, 2025 (480 days ago).

What is a management decision? →
2023-001
Special Tests & Provisions
MATERIAL WEAKNESSREPEAT

2023-001 Special Tests and Provisions Federal Agency United States Department of Agriculture Assistance Listing Number 10.766 – Community Facilities Loans and Grants Criteria [ ] Significant Deficiency [X] Material Weakness [X] Compliance Finding Under the terms and conditions of the District’s loan with the United States Department of Agriculture (USDA), the District is required to maintain separate accounts for annual debt service, as well as a debt reserve account with monthly deposits until a specified balance is reached. Condition The District’s annual debt service account is co-mingled with capital reserves. The District has not established a debt reserve account. Context This finding appears to be an isolated problem. Cause The District’s internal controls over compliance did not include adequate controls over maintenance of annual debt service and debt reserve funds. The District has not established policies and procedures over compliance with Uniform Guidance and USDA compliance requirements. Effect The District is not in compliance with the USDA compliance requirements and the terms and conditions of the loan. Recommendation We recommend the District establish separate general ledger accounts for annual debt service and debt reserve funds. We also recommend the District make monthly deposits to the debt reserve fund as required by the terms and conditions of the loan. Written policies and procedures should be established related to Uniform Guidance and USDA compliance requirements. Views of responsible officials and planned corrective actions Minneola Healthcare will open a new bank account that will hold the debt reserve amount. A deposit into the debt reserve account will be made monthly via auto transfer on the 10th of each month till December 2027. There will be one withdrawal from this account done yearly to transfer funds to a CD. The yearly payment amount will have its own account with the amount of the next years payment needed.

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Full finding narrative

2023-001 Special Tests and Provisions Federal Agency United States Department of Agriculture Assistance Listing Number 10.766 – Community Facilities Loans and Grants Criteria [ ] Significant Deficiency [X] Material Weakness [X] Compliance Finding Under the terms and conditions of the District’s loan with the United States Department of Agriculture (USDA), the District is required to maintain separate accounts for annual debt service, as well as a debt reserve account with monthly deposits until a specified balance is reached. Condition The District’s annual debt service account is co-mingled with capital reserves. The District has not established a debt reserve account. Context This finding appears to be an isolated problem. Cause The District’s internal controls over compliance did not include adequate controls over maintenance of annual debt service and debt reserve funds. The District has not established policies and procedures over compliance with Uniform Guidance and USDA compliance requirements. Effect The District is not in compliance with the USDA compliance requirements and the terms and conditions of the loan. Recommendation We recommend the District establish separate general ledger accounts for annual debt service and debt reserve funds. We also recommend the District make monthly deposits to the debt reserve fund as required by the terms and conditions of the loan. Written policies and procedures should be established related to Uniform Guidance and USDA compliance requirements. Views of responsible officials and planned corrective actions Minneola Healthcare will open a new bank account that will hold the debt reserve amount. A deposit into the debt reserve account will be made monthly via auto transfer on the 10th of each month till December 2027. There will be one withdrawal from this account done yearly to transfer funds to a CD. The yearly payment amount will have its own account with the amount of the next years payment needed.

Corrective Action Plan

2023-001 – Special Tests and Provisions Corrective action planned: Minneola Healthcare will open a new bank account that will hold the debt reserve amount. A deposit into the debt reserve account will be made monthly via auto transfer on the 10th of each month till December 2027. There will be one withdrawal from this account done yearly to transfer funds to a CD. The yearly payment amount will have its own account with the amount of the next years payment needed. Anticipated completion date: November 30th, 2024 Contact person responsible for corrective action: Controller

Prior Finding References

2022-002

About Special Tests and Provisions →

FY 2022-12-31

FAC accepted this audit on November 4, 2024 — management decision was due May 4, 2025.

2022-002
Special Tests & Provisions
MATERIAL WEAKNESS

2022-002 Special Tests and Provisions Federal Agency United States Department of Agriculture Assistance Listing Number 10.766 – Community Facilities Loans and Grants Criteria [ ] Significant Deficiency [X] Material Weakness [X] Compliance Finding Under the terms and conditions of the District’s loan with the United States Department of Agriculture (USDA), the District is required to maintain separate accounts for annual debt service, as well as a debt reserve account with monthly deposits until a specified balance is reached. Condition The District’s annual debt service account is co-mingled with capital reserves. The District has not established or funded a debt reserve account. Context This finding appears to be an isolated problem. Cause The District’s internal controls over compliance did not include adequate controls over maintenance of annual debt service and debt reserve funds. The District has not established policies and procedures over compliance with Uniform Guidance and USDA compliance requirements. Effect The District is not in compliance with the USDA compliance requirements and the terms and conditions of the loan. Recommendation We recommend the District establish separate general ledger accounts for annual debt service and debt reserve funds. We also recommend the District make monthly deposits to the debt reserve fund as required by the terms and conditions of the loan. Written policies and procedures should be established related to Uniform Guidance and USDA compliance requirements. Views of responsible officials and planned corrective actions The District will open a new bank account that will hold the debt reserve amount. A deposit into the debt reserve account will be made monthly via auto transfer on the 10th of each month until December 2027. There will be one withdrawal from this account done annually to transfer funds to a CD. The annual payment amount will have its own account with the amount of the next years’ payment.

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Full finding narrative

2022-002 Special Tests and Provisions Federal Agency United States Department of Agriculture Assistance Listing Number 10.766 – Community Facilities Loans and Grants Criteria [ ] Significant Deficiency [X] Material Weakness [X] Compliance Finding Under the terms and conditions of the District’s loan with the United States Department of Agriculture (USDA), the District is required to maintain separate accounts for annual debt service, as well as a debt reserve account with monthly deposits until a specified balance is reached. Condition The District’s annual debt service account is co-mingled with capital reserves. The District has not established or funded a debt reserve account. Context This finding appears to be an isolated problem. Cause The District’s internal controls over compliance did not include adequate controls over maintenance of annual debt service and debt reserve funds. The District has not established policies and procedures over compliance with Uniform Guidance and USDA compliance requirements. Effect The District is not in compliance with the USDA compliance requirements and the terms and conditions of the loan. Recommendation We recommend the District establish separate general ledger accounts for annual debt service and debt reserve funds. We also recommend the District make monthly deposits to the debt reserve fund as required by the terms and conditions of the loan. Written policies and procedures should be established related to Uniform Guidance and USDA compliance requirements. Views of responsible officials and planned corrective actions The District will open a new bank account that will hold the debt reserve amount. A deposit into the debt reserve account will be made monthly via auto transfer on the 10th of each month until December 2027. There will be one withdrawal from this account done annually to transfer funds to a CD. The annual payment amount will have its own account with the amount of the next years’ payment.

Corrective Action Plan

2022-002 – Special Tests and Provisions Corrective action planned: The District will open a new bank account that will hold the debt reserve amount. A deposit into the debt reserve account will be made monthly via auto transfer on the tenth of each month until December 2027. There will be one withdrawal from this account done annually to transfer funds to a CD. The annual payment amount will have its own account with the amount of the next years’ payment. Anticipated completion date: November 30, 2024 Contact person responsible for corrective action: Controller

About Special Tests and Provisions →
2022-003
Reporting
MATERIAL WEAKNESS

2022-003 Reporting Federal Agency United States Department of Agriculture Assistance Listing Number 10.766 – Community Facilities Loans and Grants Criteria [ ] Significant Deficiency [X] Material Weakness [X] Compliance Finding Under the terms and conditions of the District’s loan with the United States Department of Agriculture (USDA), the District is required to submit annual audited financial statements to the USDA. Condition There is no evidence of audited financial statements being submitted to the USDA during 2022. Context This finding appears to be an isolated problem. Cause Correspondence records between the District and the USDA in 2022 were not retained. Effect The District is not in compliance with the USDA compliance requirements and the terms and conditions of the loan. Recommendation We recommend the District submit annual audited financial statements to the USDA in a timely manner after they are issued. We also recommend the District retain all future correspondence with the USDA regarding the submission of audited financial statements. Views of responsible officials and planned corrective actions The District will save the emails that show they sent the audit to the USDA in the audit folder.

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Full finding narrative

2022-003 Reporting Federal Agency United States Department of Agriculture Assistance Listing Number 10.766 – Community Facilities Loans and Grants Criteria [ ] Significant Deficiency [X] Material Weakness [X] Compliance Finding Under the terms and conditions of the District’s loan with the United States Department of Agriculture (USDA), the District is required to submit annual audited financial statements to the USDA. Condition There is no evidence of audited financial statements being submitted to the USDA during 2022. Context This finding appears to be an isolated problem. Cause Correspondence records between the District and the USDA in 2022 were not retained. Effect The District is not in compliance with the USDA compliance requirements and the terms and conditions of the loan. Recommendation We recommend the District submit annual audited financial statements to the USDA in a timely manner after they are issued. We also recommend the District retain all future correspondence with the USDA regarding the submission of audited financial statements. Views of responsible officials and planned corrective actions The District will save the emails that show they sent the audit to the USDA in the audit folder.

Corrective Action Plan

2022-003 – Reporting Corrective action planned: The District will save the emails that show they sent the audit to the USDA in the audit folder. Anticipated completion date: Immediately Contact person responsible for corrective action: Controller

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