FAC Explorer

Audit 21261

FY End
2022-06-30
Total Expended
$1.05M
Findings
6
Programs
2
Organization: Greene Acres Nursing Home Association, Inc. (AR)
Year: 2022 Accepted: 2023-03-26
Auditor: Hcj CPAS & Advisors PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
24611 2022-001 Material Weakness - AB
24612 2022-002 Material Weakness - AB
24613 2022-003 Significant Deficiency - P
601053 2022-001 Material Weakness - AB
601054 2022-002 Material Weakness - AB
601055 2022-003 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
21.027 Coronavirus State and Local Fiscal Recovery Funds $752,682 Yes 3
93.498 Provider Relief Fund $295,849 - 0

Contacts

Name Title Type
WDWJQUGZN9X8 Brandon Goldsmith Auditee
8702368771 Mark Glover Auditor
No contacts on file

Notes to SEFA

Title: Accrual Basis of Accounting Accounting Policies: This accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of the Association. The information in the 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 (the Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. 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. The Association has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Provider Relief Fund Accounting Policies: This accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of the Association. The information in the 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 (the Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The 2022 Compliance Supplement clarifies that entities who received the U.S. Department of Health and Human Services (HHS) Provider Relief Fund (PRF), Federal Assistance Listing No. 93.498, funds during period 5 (payment received between January 1, 2022, to June 30, 2022) will not include those amounts on the schedule of expenditures of federal awards until June 30, 2023, fiscal year ends. Therefore, for entities with fiscal year ends on or before June 29, 2023, PRF funds received during period 5 will not factor into major program determination and is not subject to single audit in that year.

Finding Details

Finding 2022-001
Statement of condition: Salaries and wages were charged to Coronavirus State and Local Fiscal Recovery Funds program for employees but there was no evidence of review performed over payroll calculations. There were also instances of variances for salaries and wages charged to the program between supporting documentation and amount recorded and paid. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) 200.303 (a) states that the non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-federal entity is managing the Federal award in compliance with Federal statues, regulations, and the terms and conditions of the Federal award. Cause of condition: Controls were in place for management to ensure that payroll charged to the Coronavirus State and Local Fiscal Recovery Funds program were accurate and properly recorded, however, there was no evidence the control was performed. This lack of control resulted in variances between supporting documentation and what was recorded and paid. Effect of Condition: During testing, it was noted that there was no evidence that the key payroll control for the program was performed. This resulted in compliance findings and questioned costs. Context: A sample of 66 payroll checks paid with Coronavirus State and Local Fiscal Recovery Funds were selected to test controls related to allowable costs for payroll charged to program. The audit testing found no evidence of review by appropriate personnel of the 66 payroll checks charged to the program. This resulted in 10 of the 66 payroll checks having a variance of $391 when comparing supporting documentation of pay and what was actually recorded and paid. Recommendation: To ensure that salaries and wages charged to Coronavirus State and Local Fiscal Recovery Funds program are accurate and properly recorded, management should have appropriate personnel, outside of the personnel who prepared the payroll calculation, perform a review and sign-off once approved (either electronically within payroll software or on paper supporting documentation).
Finding 2022-002
Statement of condition: Salaries and wages were charged to the Coronavirus State and Local Fiscal Recovery Funds program for employees but there was no evidence of review performed over payroll calculations. There were also instances of variances for salaries and wages charged to the program between supporting documentation and amount recorded and paid. Material Weakness: As discussed at Finding 2022-001, controls were in place for management to ensure that payroll charged to the Coronavirus State and Local Fiscal Recovery Funds program were accurate and properly recorded, however, there was no evidence the control was performed. This lack of control resulted in variances between supporting documentation and what was recorded and paid.
Finding 2022-003
Statement of condition: For the Coronavirus State and Local Fiscal Recovery Funds, there were no written policies and procedures. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) 200.302 (b)(6) and (7) states that the non-federal entity must establish written procedures to implement the requirements of 2 CFR 200.305 and written procedures for determining the allowability of costs in accordance with 2 CFR 200 Subpart E as well as terms and conditions of the Federal award. Cause of condition: No controls to establish written policies and procedures when Federal awards are received. Effect of condition: During testing, it was noted that there were no written policies and procedures regarding the Federal award. Context: Policies and procedures were verbally communicated or written during fieldwork to assist with testing. Recommendation: To establish written policies and procedures for Federal awards.
Finding 2022-001
Statement of condition: Salaries and wages were charged to Coronavirus State and Local Fiscal Recovery Funds program for employees but there was no evidence of review performed over payroll calculations. There were also instances of variances for salaries and wages charged to the program between supporting documentation and amount recorded and paid. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) 200.303 (a) states that the non-federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-federal entity is managing the Federal award in compliance with Federal statues, regulations, and the terms and conditions of the Federal award. Cause of condition: Controls were in place for management to ensure that payroll charged to the Coronavirus State and Local Fiscal Recovery Funds program were accurate and properly recorded, however, there was no evidence the control was performed. This lack of control resulted in variances between supporting documentation and what was recorded and paid. Effect of Condition: During testing, it was noted that there was no evidence that the key payroll control for the program was performed. This resulted in compliance findings and questioned costs. Context: A sample of 66 payroll checks paid with Coronavirus State and Local Fiscal Recovery Funds were selected to test controls related to allowable costs for payroll charged to program. The audit testing found no evidence of review by appropriate personnel of the 66 payroll checks charged to the program. This resulted in 10 of the 66 payroll checks having a variance of $391 when comparing supporting documentation of pay and what was actually recorded and paid. Recommendation: To ensure that salaries and wages charged to Coronavirus State and Local Fiscal Recovery Funds program are accurate and properly recorded, management should have appropriate personnel, outside of the personnel who prepared the payroll calculation, perform a review and sign-off once approved (either electronically within payroll software or on paper supporting documentation).
Finding 2022-002
Statement of condition: Salaries and wages were charged to the Coronavirus State and Local Fiscal Recovery Funds program for employees but there was no evidence of review performed over payroll calculations. There were also instances of variances for salaries and wages charged to the program between supporting documentation and amount recorded and paid. Material Weakness: As discussed at Finding 2022-001, controls were in place for management to ensure that payroll charged to the Coronavirus State and Local Fiscal Recovery Funds program were accurate and properly recorded, however, there was no evidence the control was performed. This lack of control resulted in variances between supporting documentation and what was recorded and paid.
Finding 2022-003
Statement of condition: For the Coronavirus State and Local Fiscal Recovery Funds, there were no written policies and procedures. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) 200.302 (b)(6) and (7) states that the non-federal entity must establish written procedures to implement the requirements of 2 CFR 200.305 and written procedures for determining the allowability of costs in accordance with 2 CFR 200 Subpart E as well as terms and conditions of the Federal award. Cause of condition: No controls to establish written policies and procedures when Federal awards are received. Effect of condition: During testing, it was noted that there were no written policies and procedures regarding the Federal award. Context: Policies and procedures were verbally communicated or written during fieldwork to assist with testing. Recommendation: To establish written policies and procedures for Federal awards.