FAC Explorer

Audit 10821

FY End
2022-12-31
Total Expended
$1.55M
Findings
4
Programs
2
Organization: Spiritrust Lutheran and Subsidiaries (PA)
Year: 2022 Accepted: 2024-01-10
Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
8212 2022-002 Significant Deficiency - L
8213 2022-003 Significant Deficiency - L
584654 2022-002 Significant Deficiency - L
584655 2022-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $1.03M Yes 2
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $515,355 - 0

Contacts

Name Title Type
ULLBV6MEJV48 Melissa Frownfelter Auditee
7178543971 James Hunt, CPA Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. For the awards related to the Provider Relief Fund and American Rescue Plan Rural Distribution (PRF) program, the department of Health and Human Services (HHS) has indicated the amounts on the Schedule be reported corresponding to reporting requirements of the Health Resources and Services Administration (HRSA) PRF Reporting Portal. Payments from the HHS for PRF are assigned to 'Payment Received Periods' (each, a Period) based upon the date each payment from the PRF was received. Each Period has a specified Period of Availability and timing of reporting requirements. Entities report into the HRSA PRF Reporting Portal after each Period's deadline to use the funds (i.e., after the end of the Period of Availability). De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis indirect cost rate The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of SpiriTrust Lutheran and Subsidiaries (the Organization) under programs of the federal government for the year ended December 31, 2022. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization. Additionally, due to different reporting requirements of the consolidated financial statements from those of the above Schedule, some amounts presented may differ from amounts presented in, or used in, the preparation of the consolidated financial statements. The Schedule does not include the federal awards of certain controlled entities. Those controlled entities separately issued standalone schedules of expenditures of federal awards because the Department of Housing and Urban Development requires a standalone audit of the respective entities.
Title: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Reporting Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. For the awards related to the Provider Relief Fund and American Rescue Plan Rural Distribution (PRF) program, the department of Health and Human Services (HHS) has indicated the amounts on the Schedule be reported corresponding to reporting requirements of the Health Resources and Services Administration (HRSA) PRF Reporting Portal. Payments from the HHS for PRF are assigned to 'Payment Received Periods' (each, a Period) based upon the date each payment from the PRF was received. Each Period has a specified Period of Availability and timing of reporting requirements. Entities report into the HRSA PRF Reporting Portal after each Period's deadline to use the funds (i.e., after the end of the Period of Availability). De Minimis Rate Used: N Rate Explanation: The Organization has not elected to use the 10% de minimis indirect cost rate The Provider Relief Fund and American Rescue Rural Distribution expenditures (including lost revenues) reported on the Schedule are based upon the funding received by SpiriTrust Lutheran (Tax ID 231476329) and SpiriTrust Lutheran Home Care & Hospice, Inc. (Tax ID 251689293). The Organization received $316,248 from January 1, 2021 through June 30, 2021 (Period 3), which was required to be expended by June 30, 2022. The Organization received $717,432 from July 1, 2021, through December 31, 2021 (Period 4), which was required to be expended by December 31, 2022.

Finding Details

Finding 2022-002
Compliance Requirement: Reporting Criteria: The audit report is required to be submitted to the Federal Audit Clearinghouse no later than nine months after the fiscal year-end. Condition and Context: During the audit, we noted that the Organization was not able to meet the Federal Audit Clearinghouse filing deadline. Cause: The Organization has experienced turnover in staffing that as outlined in Finding 2022-001 has caused them to have delays in reconciliation of various accounting areas. These delays prevented the audit from being completed timely. Effect: The Organization was late filing the audit report with the Federal Audit Clearinghouse. Recommendation: The Organization should make the necessary adjustments to ensure that the audit can be completed timely in order to meet the September 30 deadline. View of Responsible Officials: The Organization agrees with the finding. Corrective Action: Management has allocated additional resources to the finance team to ensure that reconciliations occur in a timelier timely way to ensure that submission deadlines are met.
Finding 2022-003
Compliance Requirement: Reporting Question Costs: None Criteria: All recipients of Provider Relief Fund payments must comply with the reporting requirements described in the PRF terms and conditions specified in directions issued by the U.S Department of Health and Human Services.- Condition and Context: The Organization did not complete the PRF reporting in accordance with the U.S Department of Health and Human Services guidance. For the Organization to utilized Method 1 (year over year) for Reporting Periods 3 and 4, the Organization was required to enter revenues by payor type for each of the years ended 2019, 2020, 2021, and 2022. During our audit, we noted that the total revenue reported for 2019 agreed to internal financial reports, however the amounts reported for quarter three and quarter four was not reported accurately. Cause: The Organization's grouping report did not accurately capture the correct payor type for this quarter which caused management to net a credit balance between the third and fourth quarter. Effect: The amounts reported to the Health Resources and Services Administration (HRSA) were not in accordance with established U.S. Department of Health and Human Services guidance. The Organization had sufficient lost revenues reported for quarter one and two which was reported in accordance with the specified directions to justify the funds reported in Reporting Period 3 and 4. There were no questioned costs. Recommendation: We recommend that management review its internal policies to ensure that all guidance is followed for the submission method selected. View of Responsible Officials: The Organization agrees with the finding. Corrective Action: Management has reviewed its internal policies and plans to re-calculate and submit all future filings with the correct third and fourth quarter 2019 revenue amounts.
Finding 2022-002
Compliance Requirement: Reporting Criteria: The audit report is required to be submitted to the Federal Audit Clearinghouse no later than nine months after the fiscal year-end. Condition and Context: During the audit, we noted that the Organization was not able to meet the Federal Audit Clearinghouse filing deadline. Cause: The Organization has experienced turnover in staffing that as outlined in Finding 2022-001 has caused them to have delays in reconciliation of various accounting areas. These delays prevented the audit from being completed timely. Effect: The Organization was late filing the audit report with the Federal Audit Clearinghouse. Recommendation: The Organization should make the necessary adjustments to ensure that the audit can be completed timely in order to meet the September 30 deadline. View of Responsible Officials: The Organization agrees with the finding. Corrective Action: Management has allocated additional resources to the finance team to ensure that reconciliations occur in a timelier timely way to ensure that submission deadlines are met.
Finding 2022-003
Compliance Requirement: Reporting Question Costs: None Criteria: All recipients of Provider Relief Fund payments must comply with the reporting requirements described in the PRF terms and conditions specified in directions issued by the U.S Department of Health and Human Services.- Condition and Context: The Organization did not complete the PRF reporting in accordance with the U.S Department of Health and Human Services guidance. For the Organization to utilized Method 1 (year over year) for Reporting Periods 3 and 4, the Organization was required to enter revenues by payor type for each of the years ended 2019, 2020, 2021, and 2022. During our audit, we noted that the total revenue reported for 2019 agreed to internal financial reports, however the amounts reported for quarter three and quarter four was not reported accurately. Cause: The Organization's grouping report did not accurately capture the correct payor type for this quarter which caused management to net a credit balance between the third and fourth quarter. Effect: The amounts reported to the Health Resources and Services Administration (HRSA) were not in accordance with established U.S. Department of Health and Human Services guidance. The Organization had sufficient lost revenues reported for quarter one and two which was reported in accordance with the specified directions to justify the funds reported in Reporting Period 3 and 4. There were no questioned costs. Recommendation: We recommend that management review its internal policies to ensure that all guidance is followed for the submission method selected. View of Responsible Officials: The Organization agrees with the finding. Corrective Action: Management has reviewed its internal policies and plans to re-calculate and submit all future filings with the correct third and fourth quarter 2019 revenue amounts.