Audit 20800

FY End
2022-06-30
Total Expended
$15.20M
Findings
2
Programs
6
Organization: St. Joseph's Center (PA)
Year: 2022 Accepted: 2023-03-30

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
24187 2022-001 Material Weakness - L
600629 2022-001 Material Weakness - L

Programs

ALN Program Spent Major Findings
93.778 Medical Assistance Program $12.66M Yes 0
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $2.45M Yes 1
14.218 Supportive Housing Program $25,000 - 0
14.231 Emergency Solutions Grant Program $14,928 - 0
10.553 School Breakfast Program $12,814 - 0
10.555 National School Lunch Program $4,503 - 0

Contacts

Name Title Type
C4ECUZGJXDG1 James G. Ceccoli Auditee
5709631274 Danielle Hawley Auditor
No contacts on file

Notes to SEFA

Title: Basis of Accounting and Presentation Accounting Policies: St. Joseph's Center (the Center) is the reporting entity for financial statement purposes as described in Note 1 to the Center's basic financial statements. The accompanying schedule of expenditures of federal awards (the Schedule) presents the activity of all federal award programs of the Center. Federal awards received directly from federal agencies, as well as federal awards passed through various departments of the Commonwealth of Pennsylvania are included on the Schedule. De Minimis Rate Used: N Rate Explanation: The Center has not elected to use the 10% de minimus indirect cost rate as allowed under the UniformGuidance. The accompanying Schedule is presented under the accrual basis of accounting. The information in this Schedule is prepared in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance) and Commonwealth of Pennsylvania, Department of Human Services awards. Therefore, some amounts may differ from amounts presented in, or used in the preparation of, the financial statements.The Schedule includes expenditures of the U.S. Department of Health and Human Services (HHS) Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) Program of the Center for the periods of availability that ended in the fiscal year ended June 30, 2022.
Title: Calculation of Federal and State Share of Medical Assistance Funding Accounting Policies: St. Joseph's Center (the Center) is the reporting entity for financial statement purposes as described in Note 1 to the Center's basic financial statements. The accompanying schedule of expenditures of federal awards (the Schedule) presents the activity of all federal award programs of the Center. Federal awards received directly from federal agencies, as well as federal awards passed through various departments of the Commonwealth of Pennsylvania are included on the Schedule. De Minimis Rate Used: N Rate Explanation: The Center has not elected to use the 10% de minimus indirect cost rate as allowed under the UniformGuidance. Medical Assistance Program:ICF/ID - Scranton, Swoyersville, Hughestown $18,699,030 Respite 15 Minute and Companion Services 371,383 Day Program 1,591,346 Early Intervention 323,895 Respite Day Program 33,849 Behavioral Support 2,765 Supportive Living Program 473,053 Federally eligible 21,495,321 FMAP rate 58.88% MA funds expended $12,656,445
Title: Relationship to Basic Financial Statements Accounting Policies: St. Joseph's Center (the Center) is the reporting entity for financial statement purposes as described in Note 1 to the Center's basic financial statements. The accompanying schedule of expenditures of federal awards (the Schedule) presents the activity of all federal award programs of the Center. Federal awards received directly from federal agencies, as well as federal awards passed through various departments of the Commonwealth of Pennsylvania are included on the Schedule. De Minimis Rate Used: N Rate Explanation: The Center has not elected to use the 10% de minimus indirect cost rate as allowed under the UniformGuidance. Federal expenditures on the accompanying schedule of expenditures of federal awards are included as expenditures of the various programs in the Center's basic financial statements as follows:Federal ProgramCenter ProgramMedical Assistance ProgramIntermediate Care Facility/Intellectual Disability (ICF/ID) - Scranton, Swoyersville, HughestownRespite DayRespite 15 Minute and Companion ServicesDay ProgramSupported Living ProgramBehavioral SupportEarly InterventionSchool Breakfast ProgramICF/IDNational School Lunch ProgramICF/IDArea Eligible After School SnackICF/IDEmergency Food Assistance ProgramICF/IDCommunity Development Block Grants/Entitlement Grants ProgramICF/IDEmergency Shelter Grant ProgramMother InfantCOVID-19: Provider Relief Fund and American Rescue Plan (ARP)Contributions
Title: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution, Ass Accounting Policies: St. Joseph's Center (the Center) is the reporting entity for financial statement purposes as described in Note 1 to the Center's basic financial statements. The accompanying schedule of expenditures of federal awards (the Schedule) presents the activity of all federal award programs of the Center. Federal awards received directly from federal agencies, as well as federal awards passed through various departments of the Commonwealth of Pennsylvania are included on the Schedule. De Minimis Rate Used: N Rate Explanation: The Center has not elected to use the 10% de minimus indirect cost rate as allowed under the UniformGuidance. For the HHS awards related to the PRF, 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 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). The Schedule includes $2,454,715 received from HHS between July 1, 2020 through June 30, 2021. In accordance with the guidance from HHS, the Schedule includes expenditures and lost revenues for the periods of availability that ended in the year ended June 30, 2022 (i.e. Periods 2 and 3). The Schedule includes the following entities that received the PRF program:Legal Entity NameTax Identification NumberSt. Josephs Center24-0795689

Finding Details

Finding 2022-001: Material Weakness in Internal Control - Reporting Assistance Listing No.: 93.498 COVID-19: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Not applicable Award Number: Not applicable Award Year: 2021 Compliance Requirement: Reporting Questioned Costs: None reported Criteria: Non-federal entities in receipt of federal funds must comply with the requirements of 2 CFR 200.303(a), which require an entity to establish and maintain effective internal control over the Federal award to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Recipients of Provider Relief Fund and American Rescue Plan Rural Distribution (PRF) payments must also comply with the reporting requirements described in the PRF terms and conditions and specified in directions issued by the U.S. Department of Health and Human Services. Condition/Context: The Center improperly calculated lost revenues as a result of improperly including contributions and improperly excluding contractual adjustments related to patient service revenues. This is not a statistically valid sample. Effect: Lost revenues reported to Health Resources and Services Administration (HRSA) for the periods of availability that ended in the year ended June 30, 2022 were understated by $850,625. Cause: An oversight by management during the review process that failed to identify the error in the reporting of lost revenues. Recommendation: We recommend that management implement procedures to ensure that information used in preparation of the reports is reviewed, with errors addressed, prior to reporting. Views of Responsible Officials: The Center agrees with the finding. The Center will correct the lost revenues calculation in the Period 4 Submission due March 31, 2023. In order to ensure that St. Joseph?s Center properly calculates lost revenues in the future, all lost revenue calculations and source documents will be prepared by the Accounting Manager and reviewed by the Chief Financial Officer.
Finding 2022-001: Material Weakness in Internal Control - Reporting Assistance Listing No.: 93.498 COVID-19: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: Not applicable Award Number: Not applicable Award Year: 2021 Compliance Requirement: Reporting Questioned Costs: None reported Criteria: Non-federal entities in receipt of federal funds must comply with the requirements of 2 CFR 200.303(a), which require an entity to establish and maintain effective internal control over the Federal award to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Recipients of Provider Relief Fund and American Rescue Plan Rural Distribution (PRF) payments must also comply with the reporting requirements described in the PRF terms and conditions and specified in directions issued by the U.S. Department of Health and Human Services. Condition/Context: The Center improperly calculated lost revenues as a result of improperly including contributions and improperly excluding contractual adjustments related to patient service revenues. This is not a statistically valid sample. Effect: Lost revenues reported to Health Resources and Services Administration (HRSA) for the periods of availability that ended in the year ended June 30, 2022 were understated by $850,625. Cause: An oversight by management during the review process that failed to identify the error in the reporting of lost revenues. Recommendation: We recommend that management implement procedures to ensure that information used in preparation of the reports is reviewed, with errors addressed, prior to reporting. Views of Responsible Officials: The Center agrees with the finding. The Center will correct the lost revenues calculation in the Period 4 Submission due March 31, 2023. In order to ensure that St. Joseph?s Center properly calculates lost revenues in the future, all lost revenue calculations and source documents will be prepared by the Accounting Manager and reviewed by the Chief Financial Officer.