Audit 19150

FY End
2022-12-31
Total Expended
$15.39M
Findings
2
Programs
2
Organization: Cassia (MN)
Year: 2022 Accepted: 2023-09-28
Auditor: Cla

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
20087 2022-001 Significant Deficiency - L
596529 2022-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $11.89M Yes 0
93.498 Provider Relief Fund $3.50M Yes 1

Contacts

Name Title Type
WGF6Y6S9AF49 Kathy Youngquist Auditee
9528555000 Matt Wocken Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Cassia and Support Corporations (the Corporation) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the applicable 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 of expenditures of federal awards presents only a selected portion of the operations of the Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Corporation.The Corporations consolidated financial statements include the operations of the Corporations controlled housing corporations, which received $17,579,703 in federal awards that are not included in the schedule of expenditures of federal awards for the year ended December 31, 2022. Our audit did not include the operations of the Corporations controlled housing corporations because the U.S. Department of Housing and Urban Development requires separate single audits to be performed on these entities in accordance with the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. COMMUNITY FACILITIES LOANS AND GRANTS (10.766) - Balances outstanding at the end of the audit period were 11667484.
Title: Reconciliation of SEFA to Financial Statements Accounting Policies: The accompanying schedule of expenditures of federal awards includes the federal grant activity of Cassia and Support Corporations (the Corporation) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the applicable 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 of expenditures of federal awards presents only a selected portion of the operations of the Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Corporation.The Corporations consolidated financial statements include the operations of the Corporations controlled housing corporations, which received $17,579,703 in federal awards that are not included in the schedule of expenditures of federal awards for the year ended December 31, 2022. Our audit did not include the operations of the Corporations controlled housing corporations because the U.S. Department of Housing and Urban Development requires separate single audits to be performed on these entities in accordance with the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The consolidated financial statements reflect revenue recognized from the Provider Relief Fund of approximately $3,763,364 and $3,824,159 for the years ended December 31, 2022 and 2021, respectively. Included in the revenue recognized during the year ended December 31, 2022 is $1,815,066 received during Period 5. Included in the revenue recognized during the year December 31, 2021 is $2,267,483 received during Period 1 and Period 2. The SEFA includes Provider Relief Funds of $3,504,974 that were received in Period 3 and Period 4 in accordance with the requirements of the compliance supplement for assistance listing number 93.498.The outstanding loan balance was $11,667,484 as of December 31, 2022.

Finding Details

Criteria or specific requirement: As outlined in the Terms and Conditions, Provider Relief Fund (PRF) payments may be used to prevent, prepare for, and respond to coronavirus, and for related expenses or lost revenues from health care services attributable to coronavirus. Lost revenues are to be calculated using actual quarterly revenue in the year of reporting compared to same quarterly revenues generated in 2019. Condition: The Corporation mis-reported lost revenues for one entity?s Period 4 PRF report. Context: During testing, it was noted that one quarter of lost revenues did not agree with the Corporation?s internal financial statements, which was not identified in the Corporation?s review of the reporting submission. This resulted in overstating the Corporation?s lost revenues for the period by $113,771. Cause: Management oversight. Effect: The Corporation mis-keyed one quarter of lost revenue when completing the reporting submission. Recommendation: We recommend management review the lost revenues included on the reporting submissions to ensure the lost revenues agree with the internal financial statements. Views of responsible officials: There is no disagreement with the audit finding. We have a significant amount of unused lost revenue to cover the mis-reported lost revenue and will adjust our next submission to account for this error.
Criteria or specific requirement: As outlined in the Terms and Conditions, Provider Relief Fund (PRF) payments may be used to prevent, prepare for, and respond to coronavirus, and for related expenses or lost revenues from health care services attributable to coronavirus. Lost revenues are to be calculated using actual quarterly revenue in the year of reporting compared to same quarterly revenues generated in 2019. Condition: The Corporation mis-reported lost revenues for one entity?s Period 4 PRF report. Context: During testing, it was noted that one quarter of lost revenues did not agree with the Corporation?s internal financial statements, which was not identified in the Corporation?s review of the reporting submission. This resulted in overstating the Corporation?s lost revenues for the period by $113,771. Cause: Management oversight. Effect: The Corporation mis-keyed one quarter of lost revenue when completing the reporting submission. Recommendation: We recommend management review the lost revenues included on the reporting submissions to ensure the lost revenues agree with the internal financial statements. Views of responsible officials: There is no disagreement with the audit finding. We have a significant amount of unused lost revenue to cover the mis-reported lost revenue and will adjust our next submission to account for this error.