EAU CLAIRE COOPERATIVE HEALTH CENTER

Finding: 2024-001 Oversight of Financial Reporting Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting and timely performance of associated financial reporting functions. Condition: During the current year audit it was determined that: 1. Numerous correcting journal entries were necessary to arrive at the adjusted financial statement amounts. 2. As discussed in finding 2024-003 the financial statement audit was not timely completed. Cause: The Organization has had staffing issues during the year and last year and numerous positions were either unfilled or there was turnover resulting in inefficient operations. Effect: Additional time and effort was needed to finalize the financial reporting for fiscal year 2024. Recommendation: The Organization needs to devote more resources to the finance department so that adequate s…

Corrective action: To whom it may concern: We have reviewed the comments provided herein and are in agreement with the comments and will remediate the findings as follows: We are reviewing the staffing of our finance department in an effort to ensure that on a go forward basis we reduce turnover and have individuals with adequate training and subject matter knowledge to perform assigned functions in accordance with appropriate standards and expectations. We are always receptive to positive constructive criticism in our effort to improve upon compliance and financial reporting. Sincerely yours, Rufus Wofford– Acting Chief Executive Officer

Finding: 2024-002 Reporting Information in the Schedule of Expenditures of Federal Awards “SEFA” Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting to ensure that all federal awards with expenditures are identified and reported in the SEFA. Condition: During the current year audit it was determined that: 1. Numerous requests were made of management to identify the population of all Federal Expenditures, including pass thru entity and aggregation of awards by Assistance Listing Number. 2. While performing the December 31, 2024 audit it was noted that the SEFA for the December 31, 2023 audit appears to not include all expenditures for the year. Cause: The Organization has had staffing issues during the year and last year and numerous positions were either unfilled or there was turnover resulting in inefficient operation…

Corrective action: To whom it may concern: We have reviewed the comments provided herein and are in agreement with the comments and will remediate the findings as follows: We are reviewing the staffing of our finance department in an effort to ensure that on a go forward basis we reduce turnover and have individuals with adequate training and subject matter knowledge to perform assigned functions in accordance with appropriate standards and expectations. We are always receptive to positive constructive criticism in our effort to improve upon compliance and financial reporting. Sincerely yours, Rufus Wofford– Acting Chief Executive Officer

Finding: 2024-003 Timely Single Audit Submission Criteria: Uniform Guidance requires that the Federal Audit Clearinghouse (FAC) receive the single audit within the earlier of nine-months from year end or 30 days upon receipt of the final audit. Condition: Due to staffing issues and unforeseen circumstances, the FAC did not timely received the audited financial statements. Cause: The Organization has had staffing issues during the year and numerous positions were either unfilled or there was turnover resulting in inefficient operations. Effect: Additional time and effort was needed to finalize the financial reporting for fiscal year 2024. Questioned Costs: None reported Context/Sampling: Delay in submission to the FAC is due to personnel staffing issues. Repeat Finding from Prior Year: Yes Recommendation: The Organization needs to devote more resources to the finance department so that ad…

Corrective action: To whom it may concern: We have reviewed the comments provided herein and are in agreement with the comments and will remediate the findings as follows: We are reviewing the staffing of our finance department in an effort to ensure that on a go forward basis we reduce turnover and have individuals with adequate training and subject matter knowledge to perform assigned functions in accordance with appropriate standards and expectations. We are always receptive to positive constructive criticism in our effort to improve upon compliance and financial reporting. Sincerely yours, Rufus Wofford– Acting Chief Executive Officer

Finding: 2023-001 Oversight of Financial Reporting Criteria: Management is responsible for establishing and maintaining effective internal controls over financial reporting and timely performance of associated financial reporting functions. Condition: During the current year audit it was determined that: 1. Numerous correcting journal entries were necessary to arrive at the adjusted financial statement amounts. 2. As discussed in finding 2023-002 the financial statement audit was not timely completed. Cause: The Organization has had staffing issues during the year and numerous positions were either unfilled or there was turnover resulting in inefficient operations. Effect: Additional time and effort was needed to finalize the financial reporting for fiscal year 2023. Recommendation: The Organization needs to devote more resources to the finance department so that adequate staffing l…

Corrective action: We have reviewed the comments provided herein and are in agreement with the comments and will remediate the findings as follows: We are reviewing the staffing of our finance department in an effort to ensure that on a go forward basis we reduce turnover and have individuals with adequate training and subject matter knowledge to perform assigned functions in accordance with appropriate standards and expectations. We are always receptive to positive constructive criticism in our effort to improve upon compliance and financial reporting. Sincerely yours, Sonja McCausland

Finding: 2023-002 Timely Single Audit Submission Criteria: Uniform Guidance requires that the Federal Audit Clearinghouse (FAC) receive the single audit within the earlier of nine-months from year end or 30 days upon receipt of the final audit. Condition: Due to staffing issues and unforeseen circumstances the FAC did not timely received the audited financial statements. Cause: The Organization has had staffing issues during the year and numerous positions were either unfilled or there was turnover resulting in inefficient operations. Effect: Additional time and effort was needed to finalize the financial reporting for fiscal year 2023. Questioned Costs: None reported  Context/Sampling: Delay in submission to the FAC is due to personnel staffing issues. Repeat Finding from Prior Year: No Recommendation: The Organization needs to devote more resources to the finance department so…

Corrective action: We have reviewed the comments provided herein and are in agreement with the comments and will remediate the findings as follows: We are reviewing the staffing of our finance department in an effort to ensure that on a go forward basis we reduce turnover and have individuals with adequate training and subject matter knowledge to perform assigned functions in accordance with appropriate standards and expectations. We are always receptive to positive constructive criticism in our effort to improve upon compliance and financial reporting. Sincerely yours, Sonja McCausland

Material Weakness Finding: 2021-002 Uniform Data System Report Federal Programs Department of Health and Human Services (DHHS) Health Center Program Cluster CFDA 93.224 and 93.527 Condition: The Uniform Data System report submitted to DHHS for the year ended December 31, 2021 contained incorrect data for expenses and federal grant revenue, which are reported in table 8A and table 9E, respectively. Expenses were understated by approximately $5.5 million in table 8A and federal grant revenue was understated by approximately $435,000 in table 9E. Criteria: Uniform Guidance, Special Reporting ? Uniform Data System Cause: The above exception resulted from errors in preparing Table 8A and Table 9D of the Uniform Data System report. Effect: DHHS reviews the UDS data for financial analysis for grant recipients. Errors in this data causes incorrect financial analysis results and…

Corrective action: In Finding 2021-002, it was reported that the Uniform Data System report submitted to DHHS for the year ended December 31, 2021 contained incorrect data for expenses and federal grant revenue, which are reported in table 8A and table 9E, respectively. Expenses were understated by approximately $5.5 million in table 8A and federal grant revenue was understated by approximately $435,000 in table 9E. Management recognizes the importance of complying with federal reporting guidelines. In response to Finding 2021-002, efforts will be made to ensure that the revenue and expenses from all sources are reconciled to the revenue and expenses on the UDS report.

Finding: 2020-003 Cash Management Federal Programs: Department of Health and Human Services Health Center Program Cluster CFDA 93.224 and 93.527 Criteria: Cash Management, 45 CFR 75.305 Condition: During the year, the Organization drew federal funds that were not disbursed for program expenses. The Organization is required to minimize the time elapsing between the transfer of funds to the Organization from the U.S. Treasury and the issuance of payments for program purposes by the Organization. Cause: The Organization did not identify qualifying expenditures prior to drawing down grant draws. During the review of all federal grant draws, it was noted that $20,061 of grant draws exceeded the related grant expenditures. Effect: Grant funds were drawn in advance of qualifying expenditures. These draws included supplementary funds that were not earned as of the en…

Corrective action: In Finding 2020-003, a condition was noted in which the Organization drew federal funds that were not disbursed for program expenses. The Organization is required to minimize the time elapsing between the transfer of funds to the Organization from the U.S. Treasury and the issuance of payments for program purposes by the Organization. Management recognizes the importance of complying with grant guidelines regarding federal grant draws. In response to Finding 2020-003, finance staff understands the requirements to draw funds only for qualifying expenditures. Procedures will be established to ensure that draws are not made in excess of the qualifying expenditures of the Organization. This re…