FAC Explorer

Audit 21438

FY End
2022-06-30
Total Expended
$1.93M
Findings
2
Programs
3
Organization: Maryhurst, INC (KY)
Year: 2022 Accepted: 2023-03-06
Auditor: Deming Malone Livesay & Ostroff

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
20886 2022-001 - - L
597328 2022-001 - - L

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $1.47M Yes 1
16.575 Crime Victim Assistance $236,678 - 0
10.155 Marketing Agreements and Orders $221,740 - 0

Contacts

Name Title Type
F3QPZYLKT6N2 Anne Cox McArthur Auditee
5022714503 Jeffrey McCaffrey Auditor
No contacts on file

Notes to SEFA

Accounting Policies: Note 1. Basis of PresentationThe accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Maryhurst, Inc. under programs of the federal government for the year ended June 30, 2022. 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Maryhurst, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Maryhurst, Inc.Note 2. Summary of Significant Accounting PoliciesExpenditures 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, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
Criteria: Funding from the U.S. Department of Health and Human Services (HHS) for the Provider Relief Funds requires the reporting of certain financial data on the Department?s reporting portal, in order to substantiate the funding is earned. Statement of Condition: It was noted that the Period 2 and Period 3 reports were filed on the portal using inaccurate financial data. Cause of Condition: In August 2021, the prior CFO left Maryhurst, resulting in the inability of Maryhurst to prepare and submit accurate reports. A new CFO was hired in late 2021. The Provider Relief Funds, reporting is unique in comparison to other grants, as the reporting occurs several months after the funds are received, and the period has ended for using the funds. The Period 2 funds were received in September 2020, with the deadline to use the funds by December 2021, and a reporting date of March 2022. The Period 3 funds were received in January 2021, with the date to use the funds by June 2022, and a reporting date of September 2022. Effect of Condition: The Period 2 and Period 3 reports were completed and filed using inaccurate revenues and salaries to substantiate the funds were used according to terms and conditions. While it was later determined that the funds were appropriately earned, through a combination of lost revenues and various COVID allowable expenditures, the amounts listed on the reports were inaccurate. Currently, there is not a means for amending these filings with HHS. Recommendation: Management should review its procedures of accurate completion and submission of the required Provider Relief Funds reporting in accordance with the terms and conditions. Views of Responsible Officials: Management agrees with this finding and has reviewed their procedures with accounting staff to ensure future compliance with required reporting.
Finding 2022-001
Criteria: Funding from the U.S. Department of Health and Human Services (HHS) for the Provider Relief Funds requires the reporting of certain financial data on the Department?s reporting portal, in order to substantiate the funding is earned. Statement of Condition: It was noted that the Period 2 and Period 3 reports were filed on the portal using inaccurate financial data. Cause of Condition: In August 2021, the prior CFO left Maryhurst, resulting in the inability of Maryhurst to prepare and submit accurate reports. A new CFO was hired in late 2021. The Provider Relief Funds, reporting is unique in comparison to other grants, as the reporting occurs several months after the funds are received, and the period has ended for using the funds. The Period 2 funds were received in September 2020, with the deadline to use the funds by December 2021, and a reporting date of March 2022. The Period 3 funds were received in January 2021, with the date to use the funds by June 2022, and a reporting date of September 2022. Effect of Condition: The Period 2 and Period 3 reports were completed and filed using inaccurate revenues and salaries to substantiate the funds were used according to terms and conditions. While it was later determined that the funds were appropriately earned, through a combination of lost revenues and various COVID allowable expenditures, the amounts listed on the reports were inaccurate. Currently, there is not a means for amending these filings with HHS. Recommendation: Management should review its procedures of accurate completion and submission of the required Provider Relief Funds reporting in accordance with the terms and conditions. Views of Responsible Officials: Management agrees with this finding and has reviewed their procedures with accounting staff to ensure future compliance with required reporting.