FAC Explorer

Audit 15370

FY End
2023-09-30
Total Expended
$6.77M
Findings
6
Programs
3
Organization: Eventide (MN)
Year: 2023 Accepted: 2024-02-02
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
11563 2023-001 Significant Deficiency Yes P
11564 2023-002 Material Weakness Yes L
11565 2023-001 Significant Deficiency Yes P
588005 2023-001 Significant Deficiency Yes P
588006 2023-002 Material Weakness Yes L
588007 2023-001 Significant Deficiency Yes P

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $5.76M Yes 1
93.498 Covid-19 Provider Relief Fund $870,377 Yes 2
14.157 Supportive Housing for the Elderly $136,761 - 0

Contacts

Name Title Type
PEB6D46Y6ZP4 Darin Ohe Auditee
2182912216 Renee Gravalin Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Organization does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. The accompanying consolidated schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Eventide and Subsidiaries (Organization) under programs of the federal government for the year ended September 30, 2023. The information 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 consolidated financial position, changes in net assets, or cash flows of the Organization.
Title: Principles of Consolidation Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Organization does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. The consolidated schedule of expenditures of federal awards includes the federal grant activity of Eventide and its consolidated subsidiaries (collectively, the Organization), which received federal financial assistance. Significant intercompany balances and transactions have been eliminated in the consolidated schedule of expenditures of federal awards. The following entities and their associated TIN numbers included within the Schedule are as follows: 410721640 Eventide 463364672 Eventide Fargo LLC 450275011 Lake Region Lutheran Home Inc. 272608086 Eventide Jamestown LLC 411486796 Eventide Living Center The accompanying Schedule does not include federal grant activity of the following subsidiaries: Eventide Fargo – Senior Living, LLC and Eventide West Fargo, LLC as these organizations did not expend any federal grant dollars during the year.
Title: Loan Programs Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Organization does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. Expenditures reported on this Schedule consists of the beginning of the year outstanding loan balances of the Organization's USDA direct loan of $2,992,613 as well as $2,772,151 which is 90% of the beginning of the year outstanding balance of the Organization's USDA guaranteed loan. If applicable, advances made on the loans during the year are reported on the Schedule. The Organization made no advances on the loans during the year ended September 30, 2023. The Organization's outstanding loan balances for the direct loan and the guaranteed loan as of September 30, 2023 are $2,880,391 and $2,987,768 (of which 90% is $2,688,991), respectively.
Title: COVID-19 Provider Relief Funds and American Rescue Plan (ARP) Rural Distribution Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Organization does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. The Organization received amounts from the U.S. Department of Health and Human Services (HHS) through the COVID‐19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) Program (Federal Financial Assistance Listing #93.498). The PRF expenditures are recognized on the Schedule when the expenditures, including lost revenue, were included in the reporting to HHS for Period 4, defined as payments received between July 1, 2021 and December 31, 2021, and Period 5, defined as payments received between January 1, 2022 and June 30, 2022. As the total amount of $870,377 was included in Period 4 and Period 5 reports submitted to HHS, that amount is shown on the accompanying Schedule.

Finding Details

Finding 2023-001
2023-001 Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year – Period 4 TIN #463364672, Period 4 TIN #410721640, Period 4 TIN #450275011, and Period 5 TIN #272608086 Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Preparation of Consolidated Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control over Compliance - Other Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition: The Organization does not have an internal control system designed to provide for a complete and accurate consolidated schedule of expenditures of federal awards being audited. Cause: Auditor assistance with the preparation of the Schedule is not unusual, as the Schedule has unique and specialized requirements and preparation is only required when the Organization meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Organization would not be able to draft a Schedule that is correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes, Finding 2022-001. Recommendation: We recommend management be aware of the financial reporting requirements relating to the Organization’s consolidated schedule of expenditures of federal awards and implement internal controls that consist of a preparer and reviewer. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-002
2023-002 Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year – Period 4 TIN #463364672, Period 4 TIN #410721640, Period 4 TIN #450275011, and Period 5 TIN #272608086 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria: 2 CFR 200.33(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statues, regulations, and conditions of the federal award. The Organization is required to submit an accurate report to HHS for each filing period that funds were received. Condition: The Organization claimed lost revenues attributable to coronavirus in which the resident revenue calculation did not agree to the HHS special report for two key line items. Cause: The Organization had a resident revenue calculation error of $269,085 on the HHS special report with no impact to the actual lost revenues (i.e. lost revenue claimed was accurate on the HHS special report but key line items were misstated). Effect: While the calculation error did not provide a difference in total between the lost revenues utilized on the HHS special report and the lost revenue calculation, the Organization’s reported quarterly resident revenues were inaccurate. This calculation error also indicated there is a lack of policies governing the review and approval of the lost revenue calculation to the HHS special report. Questioned Costs: None reported. Context: There were 66 lost revenue key line items tested on which two key line items contained errors which totaled $269,085 (resident revenue was understated for both quarters). The errors had no impact on the amount of lost revenue as the two quarters impacted did not result in any lost revenue. Repeat Finding from Prior Years: Yes, Finding 2022-003. Recommendation: We recommend that the Organization enhance internal control policies to ensure the HHS special report is supported by accurate revenue calculations. This would include implementing a secondary review and approval over the lost revenue calculation. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-001
2023-001 Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year – Period 4 TIN #463364672, Period 4 TIN #410721640, Period 4 TIN #450275011, and Period 5 TIN #272608086 Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Preparation of Consolidated Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control over Compliance - Other Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition: The Organization does not have an internal control system designed to provide for a complete and accurate consolidated schedule of expenditures of federal awards being audited. Cause: Auditor assistance with the preparation of the Schedule is not unusual, as the Schedule has unique and specialized requirements and preparation is only required when the Organization meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Organization would not be able to draft a Schedule that is correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes, Finding 2022-001. Recommendation: We recommend management be aware of the financial reporting requirements relating to the Organization’s consolidated schedule of expenditures of federal awards and implement internal controls that consist of a preparer and reviewer. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-001
2023-001 Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year – Period 4 TIN #463364672, Period 4 TIN #410721640, Period 4 TIN #450275011, and Period 5 TIN #272608086 Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Preparation of Consolidated Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control over Compliance - Other Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition: The Organization does not have an internal control system designed to provide for a complete and accurate consolidated schedule of expenditures of federal awards being audited. Cause: Auditor assistance with the preparation of the Schedule is not unusual, as the Schedule has unique and specialized requirements and preparation is only required when the Organization meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Organization would not be able to draft a Schedule that is correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes, Finding 2022-001. Recommendation: We recommend management be aware of the financial reporting requirements relating to the Organization’s consolidated schedule of expenditures of federal awards and implement internal controls that consist of a preparer and reviewer. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-002
2023-002 Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year – Period 4 TIN #463364672, Period 4 TIN #410721640, Period 4 TIN #450275011, and Period 5 TIN #272608086 Reporting Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria: 2 CFR 200.33(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statues, regulations, and conditions of the federal award. The Organization is required to submit an accurate report to HHS for each filing period that funds were received. Condition: The Organization claimed lost revenues attributable to coronavirus in which the resident revenue calculation did not agree to the HHS special report for two key line items. Cause: The Organization had a resident revenue calculation error of $269,085 on the HHS special report with no impact to the actual lost revenues (i.e. lost revenue claimed was accurate on the HHS special report but key line items were misstated). Effect: While the calculation error did not provide a difference in total between the lost revenues utilized on the HHS special report and the lost revenue calculation, the Organization’s reported quarterly resident revenues were inaccurate. This calculation error also indicated there is a lack of policies governing the review and approval of the lost revenue calculation to the HHS special report. Questioned Costs: None reported. Context: There were 66 lost revenue key line items tested on which two key line items contained errors which totaled $269,085 (resident revenue was understated for both quarters). The errors had no impact on the amount of lost revenue as the two quarters impacted did not result in any lost revenue. Repeat Finding from Prior Years: Yes, Finding 2022-003. Recommendation: We recommend that the Organization enhance internal control policies to ensure the HHS special report is supported by accurate revenue calculations. This would include implementing a secondary review and approval over the lost revenue calculation. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-001
2023-001 Department of Health and Human Services Federal Assistance Listing #93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Applicable Federal Award Number and Year – Period 4 TIN #463364672, Period 4 TIN #410721640, Period 4 TIN #450275011, and Period 5 TIN #272608086 Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Preparation of Consolidated Schedule of Expenditures of Federal Awards Significant Deficiency in Internal Control over Compliance - Other Criteria: Proper controls over financial reporting include the ability to prepare the consolidated schedule of expenditures of federal awards (Schedule) and accompanying notes to the Schedule. Condition: The Organization does not have an internal control system designed to provide for a complete and accurate consolidated schedule of expenditures of federal awards being audited. Cause: Auditor assistance with the preparation of the Schedule is not unusual, as the Schedule has unique and specialized requirements and preparation is only required when the Organization meets a specified threshold of federal expenditures. Effect: There is a reasonable possibility that the Organization would not be able to draft a Schedule that is correct without the assistance of the auditors. Questioned Costs: None reported. Context: Sampling was not used. Repeat Finding from Prior Years: Yes, Finding 2022-001. Recommendation: We recommend management be aware of the financial reporting requirements relating to the Organization’s consolidated schedule of expenditures of federal awards and implement internal controls that consist of a preparer and reviewer. Views of Responsible Officials: Management agrees with the finding.