EIN: 840537008
UEI: GSA_MIGRATION
Audited by: STOCKMAN KAST RYAN + CO LLP
Oversight agency: 93 [Department of Health and Human Services]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on May 12, 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 November 12, 2022 (1388 days ago).
What is a management decision? →Criteria or Specific Requirement ? Segregation of duties is an essential element of the internal control structure. Condition ? The District has internal control weaknesses with respect to segregation of duties over cash receipts, cash disbursements and bank reconciliations. Context ? As a small rural hospital, the District has limited personnel resulting in limitations on their ability to segregate duties. Cause ? Due to limited personnel, the District has been unable to achieve adequate segregation of duties. Effect or Potential Effect ? The lack of adequate segregation of duties causes the District to be more susceptible to misappropriation of assets. Questioned Costs ? There are no questioned costs. Recommendation ? We recommend that the District implement procedures to mitigate its segregation of duty weaknesses as much as possible including review processes by the Chief Executive Officer or Board Treasurer. Views of Responsible Officials and Planned Corrective Actions ? Management agrees with the finding and will consider controls such as review processes that will mitigate its segregation of duty weaknesses.
Show full finding ▾Hide full finding ▴Criteria or Specific Requirement ? Segregation of duties is an essential element of the internal control structure. Condition ? The District has internal control weaknesses with respect to segregation of duties over cash receipts, cash disbursements and bank reconciliations. Context ? As a small rural hospital, the District has limited personnel resulting in limitations on their ability to segregate duties. Cause ? Due to limited personnel, the District has been unable to achieve adequate segregation of duties. Effect or Potential Effect ? The lack of adequate segregation of duties causes the District to be more susceptible to misappropriation of assets. Questioned Costs ? There are no questioned costs. Recommendation ? We recommend that the District implement procedures to mitigate its segregation of duty weaknesses as much as possible including review processes by the Chief Executive Officer or Board Treasurer. Views of Responsible Officials and Planned Corrective Actions ? Management agrees with the finding and will consider controls such as review processes that will mitigate its segregation of duty weaknesses.
Condition ? The District has internal control weaknesses with respect to segregation of duties over cash receipts, cash disbursements and bank reconciliations. Recommendation ? We recommend that the District implement procedures to mitigate its segregation of duty weaknesses as much as possible including review processes by the Chief Executive Officer or Board Treasurer. Views of Responsible Officials and Planned Corrective Actions ? Management agrees with the finding and will consider controls such as review processes that will mitigate its segregation of duty weaknesses. Anticipated Date of Completion ? In progress. Action Taken ? We have reviewed the recommendations and will be discussing potential control improvements in the near future. Personnel Responsible for Corrective Action Plan ? Shannon Dixon, Chief Financial Officer.
Criteria or Specific Requirement ? Management is responsible for preparing financial statements in accordance with generally accepted accounting principles. Condition ? The District did not update its estimates of the allowances for contractual adjustments and bad debts from the prior year. Context ? The allowances for contractual adjustments and bad debts are material estimates in the financial statements. Such estimates are typically based on such information as historical contractual adjustments by payer, write-offs of patient accounts and the aging of patient accounts receivable. A subsequent cash receipts analysis supports the assertion that the net patient accounts receivable, as adjusted, as of December 31, 2021 is recoverable. Cause ? Since the conversion of its software, the District has been unable to obtain historical contractual adjustment and write-off information by payer. Effect or Potential Effect ?Financial statement information may not be accurate as a result of the lack of updated analysis. Questioned Costs ? There are no questioned costs. Recommendation ? We recommend that the District work on obtaining accurate current information regarding contractual adjustments and write-offs by payer group to improve the accuracy of its interim and year-end financial statements. Also, the financial statements should be updated at least quarterly for the calculation of allowances. Views of Responsible Officials and Planned Corrective Actions ? Management agrees with the finding and will work to obtain accurate information to allow for the calculation of estimated allowances for contractual adjustments and bad debts on an interim basis and at year-end.
Show full finding ▾Hide full finding ▴Criteria or Specific Requirement ? Management is responsible for preparing financial statements in accordance with generally accepted accounting principles. Condition ? The District did not update its estimates of the allowances for contractual adjustments and bad debts from the prior year. Context ? The allowances for contractual adjustments and bad debts are material estimates in the financial statements. Such estimates are typically based on such information as historical contractual adjustments by payer, write-offs of patient accounts and the aging of patient accounts receivable. A subsequent cash receipts analysis supports the assertion that the net patient accounts receivable, as adjusted, as of December 31, 2021 is recoverable. Cause ? Since the conversion of its software, the District has been unable to obtain historical contractual adjustment and write-off information by payer. Effect or Potential Effect ?Financial statement information may not be accurate as a result of the lack of updated analysis. Questioned Costs ? There are no questioned costs. Recommendation ? We recommend that the District work on obtaining accurate current information regarding contractual adjustments and write-offs by payer group to improve the accuracy of its interim and year-end financial statements. Also, the financial statements should be updated at least quarterly for the calculation of allowances. Views of Responsible Officials and Planned Corrective Actions ? Management agrees with the finding and will work to obtain accurate information to allow for the calculation of estimated allowances for contractual adjustments and bad debts on an interim basis and at year-end.
Condition ? The District did not update its estimates of the allowances for contractual adjustments and bad debts from the prior year. Recommendation ? We recommend that the District work on obtaining accurate current information regarding contractual adjustments and write-offs by payer group to improve the accuracy of its interim and year-end financial statements. Also, the financial statements should be updated at least quarterly for the calculation of allowances. Views of Responsible Officials and Planned Corrective Actions ? Management agrees with the finding and will work to obtain accurate information to allow for the calculation of estimated allowances for contractual adjustments and bad debts on an interim basis and at year-end. Anticipated Date of Completion ? In progress. Action Taken ? We will review collections reports to identify potential calculations that could be made on at least a quarterly basis. Personnel Responsible for Corrective Action Plan ? Shannon Dixon, Chief Financial Officer.
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