Audit 17350

FY End

2022-06-30

Total Expended

$3.77M

Findings

2

Programs

7

Organization: Eastway Corporation (OH)

Year: 2022 Accepted: 2023-03-29

Auditor: Clark Schaefer Hackett & CO

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
12888	2022-001	Material Weakness	-	L
589330	2022-001	Material Weakness	-	L

ALN	Program	Spent	Major	Findings
14.267	Continuum of Care Program	$1.12M	Yes	0
14.157	Supportive Housing for the Elderly	$1.00M	-	0
14.181	Supportive Housing for Persons with Disabilities	$390,051	-	0
93.958	Block Grants for Community Mental Health Services	$383,713	-	0
93.667	Social Services Block Grant	$377,432	-	0
93.498	Provider Relief Fund	$277,043	Yes	1
14.195	Section 8 Housing Assistance Payments Program	$211,488	-	0

Contacts

Name	Title	Type
CLMEQTVK9HW7	Matthew Natole	Auditee
9373962512	Jesse Young	Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Basis of Presentation: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Organization under programs of the federal government for the year ended June 30, 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. Summary of Significant Accounting Policies:(1) 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. (2) There were no sub-recipients for the year ended June 30, 2022. (3) The Schedule does not include the federal award activity of Eastcare III, Inc. which had a separate audit required by the Uniform Guidance. (4) The Organization's Provider Relief Funds (PRF) Phase 2 funds, of $277,043, have been recognized as revenue for the year ended June 30, 2021, and has been included on the schedule of expenditures of federal awards (SEFA) for the year ended June 30, 2022, as required by the Office of Management and Budget's Compliance Supplement. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate allowed under the UniformGuidance. The outstanding balance of loan and loan guarantee programs as of June 30, 2022 with continuingcompliance requirements which are reported as federal expenditures on the accompanying schedule ofexpenditures was as follows: SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were $921,852. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were $369,977.

Finding Details

Finding 2022-001

2022-001 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing # 93.498 U.S. Department of Health and Human Services Criteria: Special reporting of the Provider Relief Fund amounts is to be submitted to the Health Resources Services Agency (HSRA) through the Provider Relief Fund Reporting Portal. Recipients of Period 2 payments were required to complete the reporting by March 31, 2022. Condition: Reporting was not submitted to HRSA on the Provider Relief Fund Reporting Portal for the Period 2 funds by the deadline of March 31, 2022. Questioned Costs: $277,043 Cause: The person the Organization tasked with completing the required reporting passed away prior to submission date. The Organization did not have policies or procedures in place that would automatically designate a secondary person to complete the reporting function. Effect: The failure to report may result in repayment of the Provider Relief Funds received within Period 2. Recommendation: The Organization should establish written policies and procedures to ensure there are individuals designated with primary and secondary responsibility of grant reporting. Management should also consider designating an employee to oversee and monitor the program to provide proper oversight of the process. Management Response: See Management?s Corrective Action Plan on page 42.

Finding 2022-001

2022-001 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing # 93.498 U.S. Department of Health and Human Services Criteria: Special reporting of the Provider Relief Fund amounts is to be submitted to the Health Resources Services Agency (HSRA) through the Provider Relief Fund Reporting Portal. Recipients of Period 2 payments were required to complete the reporting by March 31, 2022. Condition: Reporting was not submitted to HRSA on the Provider Relief Fund Reporting Portal for the Period 2 funds by the deadline of March 31, 2022. Questioned Costs: $277,043 Cause: The person the Organization tasked with completing the required reporting passed away prior to submission date. The Organization did not have policies or procedures in place that would automatically designate a secondary person to complete the reporting function. Effect: The failure to report may result in repayment of the Provider Relief Funds received within Period 2. Recommendation: The Organization should establish written policies and procedures to ensure there are individuals designated with primary and secondary responsibility of grant reporting. Management should also consider designating an employee to oversee and monitor the program to provide proper oversight of the process. Management Response: See Management?s Corrective Action Plan on page 42.