Audit 20284

FY End

2022-09-30

Total Expended

$990,079

Findings

4

Programs

3

Organization: Valleylife and Related Entities (AZ)

Year: 2022 Accepted: 2023-03-06

Auditor: Eide Bailly LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
22402	2022-001	Significant Deficiency	-	P
22403	2022-002	Material Weakness	-	P
598844	2022-001	Significant Deficiency	-	P
598845	2022-002	Material Weakness	-	P

ALN	Program	Spent	Major	Findings
93.498	Provider Relief Fund	$780,498	Yes	2
21.027	Coronavirus State and Local Fiscal Recovery Funds	$200,000	-	0
14.218	Community Development Block Grants/entitlement Grants	$9,581	-	0

Contacts

Name	Title	Type
ZDAZMGM3CFX5	Donna Cordova	Auditee
6022166322	Pamela Eggert	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. 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 combined schedule of expenditures of federal awards (the schedule) includes the federal award activity of VALLEYLIFE and Related Entities (the Organization) under programs of the federal government for the year ended September 30, 2022. 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 financial position, changes in net assets, or cash flows of the Organization.

Title: Provider Relief Funds Accounting Policies: Expenditures reported on 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 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) program (Federal Financial Assistance Listing #93.498) in the amount of $307,141 during the year ended September 30, 2020 and $473,358 during the year ended September 30, 2021. The PRF expenditures are not recognized on the schedule until the expenditures are included in the reporting to HHS as required under the PRF program.

Finding Details

Finding 2022-001

Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the Organization is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Organization did have two individuals involved in the reporting process, but did not have documented controls over the preparation and corresponding review of the required reporting during the period. Cause: The Organization has limited staffing and did not have proper controls in place relating to review of the prepared report. Effect: There is a reasonable possibility that the Organization could submit inaccurate information. Questioned Costs: None reported. Context: Sampling was not used. One key line item was tested. Repeat Finding from Prior Years: No Recommendation: We recommend the Organization implement a control process which includes a secondary review and approval of the required reports to be submitted to the federal agency. Views of Responsible Officials: Management agrees with the finding.

Finding 2022-002

Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the Organization is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Organization did not have proper review procedures in place to determine employees? qualifications for individual incentive pay that was allocated to the program. Cause: The Organization has limited staffing and did not have proper controls in place relating to review of incentive pay per individual. Effect: There is a reasonable possibility that the Organization could submit inaccurate information. Questioned Costs: None reported. Context: A nonstatistical sample of 60 transactions were selected for testing or $31,103 out of $780,498 of eligible expenditures. Repeat Finding from Prior Years: No Recommendation: We recommend the Organization implement a control process which includes a secondary review and approval of the summarized final expenditure listing used to claim the allowable costs under the federal program. Views of Responsible Officials: Management agrees with the finding.

Finding 2022-001

Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the Organization is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Organization did have two individuals involved in the reporting process, but did not have documented controls over the preparation and corresponding review of the required reporting during the period. Cause: The Organization has limited staffing and did not have proper controls in place relating to review of the prepared report. Effect: There is a reasonable possibility that the Organization could submit inaccurate information. Questioned Costs: None reported. Context: Sampling was not used. One key line item was tested. Repeat Finding from Prior Years: No Recommendation: We recommend the Organization implement a control process which includes a secondary review and approval of the required reports to be submitted to the federal agency. Views of Responsible Officials: Management agrees with the finding.

Finding 2022-002

Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the Organization is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. Condition: The Organization did not have proper review procedures in place to determine employees? qualifications for individual incentive pay that was allocated to the program. Cause: The Organization has limited staffing and did not have proper controls in place relating to review of incentive pay per individual. Effect: There is a reasonable possibility that the Organization could submit inaccurate information. Questioned Costs: None reported. Context: A nonstatistical sample of 60 transactions were selected for testing or $31,103 out of $780,498 of eligible expenditures. Repeat Finding from Prior Years: No Recommendation: We recommend the Organization implement a control process which includes a secondary review and approval of the summarized final expenditure listing used to claim the allowable costs under the federal program. Views of Responsible Officials: Management agrees with the finding.