FAC Explorer

Audit 21811

FY End
2022-06-30
Total Expended
$839,108
Findings
2
Programs
2
Organization: Aabr, Inc. (NY)
Year: 2022 Accepted: 2023-03-30
Auditor: Grassi & CO CPAS PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
22440 2022-003 Material Weakness - AB
598882 2022-003 Material Weakness - AB

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $785,908 Yes 1
93.575 Child Care and Development Block Grant $53,200 - 0

Contacts

Name Title Type
C1ABWLDDNJ97 Richard Flores Auditee
7183213800 David M. Rottkamp Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Federal program expenditures, excluding PRF, included in the accompanying schedule are presented on the accrual basis of accounting. PRF payments are presented on the cash 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. De Minimis Rate Used: N Rate Explanation: AABR did not elect to use the 10% de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards (the schedule) includes the federal grant activity of AABR, Inc. (AABR) under programs of the federal government for the year ended June 30, 2022. The schedule also includes the U.S. Department of Health and Human Services (HHS) Provider Relief Fund (PRF) program for the fiscal year ended June 30, 2022 and presents the activity of the HHS PRF financial assistance of AABR for the period between January 1, 2020 and December 31, 2021. The information in this 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).
Title: Provider Relief Fund Program Description Accounting Policies: Federal program expenditures, excluding PRF, included in the accompanying schedule are presented on the accrual basis of accounting. PRF payments are presented on the cash 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. De Minimis Rate Used: N Rate Explanation: AABR did not elect to use the 10% de minimis indirect cost rate. The PRF is a federal program established by the Coronavirus Aid, Relief, and Economic Security Act (also known as the CARES Act) that provides relief funds to eligible providers of health care services and support for health care-related expenses or lost revenues attributable to coronavirus. HHS requires the amounts to be reported on the schedule to match with that reported in the HHS Reporting Portal. Due to significant delay of the HHS Reporting Portal, HHS extended the period of performance for recipients based on the date of receipt of PRF funds rather than the period to which the funds were expended. As a result, there were no PRF funds reported on the schedule by recipients for fiscal year-ends prior to June 30, 2021. PRF payments received between July 1, 2020 and June 30, 2021 are reported on the schedule for AABRs fiscal year ended June 30, 2022. AABR received $785,908, of PRF payments from HHS as of December 31, 2020 for Period 2, with all PRF payments for Period 2 being fully utilized as of December 31, 2021. In accordance with the unique reporting timeline as mentioned above, these payments belong to the reporting period for the fiscal year ended June 30, 2022.
Title: Subrecipients Accounting Policies: Federal program expenditures, excluding PRF, included in the accompanying schedule are presented on the accrual basis of accounting. PRF payments are presented on the cash 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. De Minimis Rate Used: N Rate Explanation: AABR did not elect to use the 10% de minimis indirect cost rate. There were no payments made to subrecipients for federal awards received during the year ended June 30, 2022.

Finding Details

Finding 2022-003
Federal Program Information: Department of Health and Human Services AL # 93.498 Provider Relief Fund and American Rescue Plan Rural Distribution (the ?Program?) Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria: Under the terms and conditions applicable for recipients of payments from funds appropriated in the Public Health and Social Services Emergency Fund for prover relief (?Relief Fund?) under Public Law 116-136, recipients of payments from the Relief Fund may use the payments to prevent, prepare for and respond to the coronavirus and that payments shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: When conducting our audit procedures related to Activities Allowed or Unallowed and Allowable Costs/Cost Principles for the Program for the year ended June 30, 2022, we identified the total population of transactions and related expenditures and selected a sample of 40 transactions. For 9 out of the 40 transactions selected, no documentation supporting the expenditures, such as vendor invoices, was available. Additionally, for these 9 transactions, which aggregate to $7,589, no documentation was available to support that the expenditures were appropriately approved prior to purchase or payment in accordance with AABR?s policies and procedures and controls over such expenditures. Effect: The 9 transactions are not properly supported and therefore, it cannot be verified if the funds were used in accordance with the terms and conditions of the Relief Fund. Questioned Costs: $7,589 Context: There were a total of 520 transactions in the overall population, amounting to $332,118. Cause: The approved vendor invoices for the 9 expenditures were misfiled after payments were made to the vendors. Recommendation: We recommend that AABR enhance and reinforce its policies and procedures related to proper documentation and approval of purchases and vendor payments, ensuring that expenditures were made for the appropriate program and purpose. Views of responsible officials and planned corrective actions: See Auditee?s corrective action plan for view of responsible officials and planned corrective actions.
Finding 2022-003
Federal Program Information: Department of Health and Human Services AL # 93.498 Provider Relief Fund and American Rescue Plan Rural Distribution (the ?Program?) Activities Allowed or Unallowed and Allowable Costs/Cost Principles Criteria: Under the terms and conditions applicable for recipients of payments from funds appropriated in the Public Health and Social Services Emergency Fund for prover relief (?Relief Fund?) under Public Law 116-136, recipients of payments from the Relief Fund may use the payments to prevent, prepare for and respond to the coronavirus and that payments shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: When conducting our audit procedures related to Activities Allowed or Unallowed and Allowable Costs/Cost Principles for the Program for the year ended June 30, 2022, we identified the total population of transactions and related expenditures and selected a sample of 40 transactions. For 9 out of the 40 transactions selected, no documentation supporting the expenditures, such as vendor invoices, was available. Additionally, for these 9 transactions, which aggregate to $7,589, no documentation was available to support that the expenditures were appropriately approved prior to purchase or payment in accordance with AABR?s policies and procedures and controls over such expenditures. Effect: The 9 transactions are not properly supported and therefore, it cannot be verified if the funds were used in accordance with the terms and conditions of the Relief Fund. Questioned Costs: $7,589 Context: There were a total of 520 transactions in the overall population, amounting to $332,118. Cause: The approved vendor invoices for the 9 expenditures were misfiled after payments were made to the vendors. Recommendation: We recommend that AABR enhance and reinforce its policies and procedures related to proper documentation and approval of purchases and vendor payments, ensuring that expenditures were made for the appropriate program and purpose. Views of responsible officials and planned corrective actions: See Auditee?s corrective action plan for view of responsible officials and planned corrective actions.