FAC Explorer

Audit 25745

FY End
2022-12-31
Total Expended
$79.94M
Findings
6
Programs
1
Organization: Alabama Nursing Home Association Education Foundation (AL)
Year: 2022 Accepted: 2023-09-28
Auditor: Carr Riggs & Ingram LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
31187 2022-001 Significant Deficiency - ABH
31188 2022-002 Significant Deficiency - L
31189 2022-003 Significant Deficiency - B
607629 2022-001 Significant Deficiency - ABH
607630 2022-002 Significant Deficiency - L
607631 2022-003 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $79.94M Yes 3

Contacts

Name Title Type
WEGVDAKJSM91 John Matson Auditee
3342716214 Amy Verberne Auditor
No contacts on file

Notes to SEFA

Title: Note 3: RECONCILIATION OF FEDERAL GRANT REVENUE TO EXPENDITURES OF FEDERAL Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards of the Foundation. The Foundation did not receive any funds directly from any federal agencies. Instead, all federal awards were passed to the Foundation from the State. The Foundations reporting entity is defined in Note 1 to the Foundations financial statements. All federal awards that were received directly from federal agencies are included on the Schedule of Expenditures of Federal Awards, as well as federal assistance passed through government agencies. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Foundation and is presented on the accrual basis of accounting. 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 (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. See Table in Report
Title: Note 4: LOANS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards of the Foundation. The Foundation did not receive any funds directly from any federal agencies. Instead, all federal awards were passed to the Foundation from the State. The Foundations reporting entity is defined in Note 1 to the Foundations financial statements. All federal awards that were received directly from federal agencies are included on the Schedule of Expenditures of Federal Awards, as well as federal assistance passed through government agencies. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Foundation and is presented on the accrual basis of accounting. 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 (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Foundation did not expend federal awards related to loans or loan guarantees during the year ended December 31, 2022.
Title: Note 5: FEDERALLY FUNDED INSURANCE Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards of the Foundation. The Foundation did not receive any funds directly from any federal agencies. Instead, all federal awards were passed to the Foundation from the State. The Foundations reporting entity is defined in Note 1 to the Foundations financial statements. All federal awards that were received directly from federal agencies are included on the Schedule of Expenditures of Federal Awards, as well as federal assistance passed through government agencies. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Foundation and is presented on the accrual basis of accounting. 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 (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Foundation had no federally funded insurance for the year ended December 31, 2022.
Title: Note 6: NONCASH ASSISTANCE Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards presents the activity of all federal awards of the Foundation. The Foundation did not receive any funds directly from any federal agencies. Instead, all federal awards were passed to the Foundation from the State. The Foundations reporting entity is defined in Note 1 to the Foundations financial statements. All federal awards that were received directly from federal agencies are included on the Schedule of Expenditures of Federal Awards, as well as federal assistance passed through government agencies. The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the Foundation and is presented on the accrual basis of accounting. 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 (Uniform Guidance). Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Foundation did not receive any federal noncash assistance for the year ended December 31, 2022.

Finding Details

Finding 2022-001
2022-001 ? SIGNIFICANT DEFICIENCY ? Internal Controls Over Allowable Activities/Costs and Period of Performance U.S. Department of Treasury ? Passed through the State of Alabama Department of Treasury ? COVID 19 Coronavirus State and Local Fiscal Recovery Fund ? ALN #21.027 ? Program Year 2022 Criteria ? Per 2 CFR Subpart D - 200.203(b)(3), non-federal entities are required to maintain records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. In addition, per CFR 200.303(a), non-federal entities are required to establish and maintain effective internal controls over federal awards. Condition ? For all 60 disbursements sampled, the Foundation relied solely on certifications received (with or without supporting documentation submitted) in order to disburse funds under the federal award program. Cause ? Based on guidance received from the grantor, the Foundation relied solely on certifications received (with or without supporting documentation submitted) in order to disburse funds under the federal award program. Effect ? Potential disbursements of federal awards for un-allowed costs/activities or in an improper period of availability. Questioned costs ? Unknown Auditors? recommendation ? Policies and procedures should be designed, implemented, and monitored to ensure that detailed supporting documentation is obtained and reviewed for all disbursements in accordance with federal award requirements. Management response and current status ? See management corrective action plan
Finding 2022-002
2022-002 ? SIGNIFICANT DEFICIENCY ? Internal Controls over Reporting U.S. Department of Treasury ? Passed through the State of Alabama Department of Treasury ? COVID 19 Coronavirus State and Local Fiscal Recovery Fund ? ALN #21.027 ? Program Year 2022 Criteria ? Per 2 CFR Subpart D - 200.329(a), non-federal entities are responsible for oversight of the operations of federal award supported activities and must monitor its activities under federal awards to assure compliance with applicable federal requirements and performance expectations are being achieved. In addition, per CFR 200.303(a), non-federal entities are required to establish and maintain effective internal controls over federal awards. Condition ? The Foundation did not maintain supporting documentation of the proper review and approval of the required final report for the federal award program. Cause ? Appropriate policies and procedures were not implemented by the Foundation to maintain documentation of the review and approval of the final report for the federal award program. Effect ? Lack of documentation of monitoring could lead to improper monitoring of federal award activity and possible misuse of funds. Questioned Costs ? None Auditors? Recommendation ? Policies and procedures should be designed, implemented, and monitored to ensure that documentation is maintained for the Foundation?s monitoring of its federal award program in accordance with federal award requirements. Management response and current status ? See management corrective action plan
Finding 2022-003
2022-003 ? SIGNIFICANT DEFICIENCY ? Claims Payments Made Based on Incorrect Calculations of Amounts to be Reimbursed (Continued) Condition ? For 3 of 60 disbursements sampled, reimbursed claims amounts included un-allowable costs due to the reimbursement calculations being performed incorrectly in the determination of the appropriate reimbursement amount. Cause ? As a result of the Foundation?s reliance solely on certifications received, amounts were not appropriately disbursed under the federal award program. Effect ? Claims payments included amounts that were not chargeable or assignable to the federal award in accordance with relative benefits received. Questioned Costs ? $148,871 known questioned costs (total amounts paid based on incorrect reimbursement calculations), $1,092,230 likely questioned costs ? amount extrapolated to entire population based on % of known questioned costs. Auditors? Recommendation ? Policies and procedures should be designed, implemented, and monitored which ensure that detailed supporting documentation is obtained and reviewed for all disbursements in accordance with federal award requirements. In addition, all calculations of amounts to be reimbursed should be appropriately recalculated to ensure the proper amount is included in the claims payments. Management response and current status ? See management corrective action plan
Finding 2022-001
2022-001 ? SIGNIFICANT DEFICIENCY ? Internal Controls Over Allowable Activities/Costs and Period of Performance U.S. Department of Treasury ? Passed through the State of Alabama Department of Treasury ? COVID 19 Coronavirus State and Local Fiscal Recovery Fund ? ALN #21.027 ? Program Year 2022 Criteria ? Per 2 CFR Subpart D - 200.203(b)(3), non-federal entities are required to maintain records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, financial obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. In addition, per CFR 200.303(a), non-federal entities are required to establish and maintain effective internal controls over federal awards. Condition ? For all 60 disbursements sampled, the Foundation relied solely on certifications received (with or without supporting documentation submitted) in order to disburse funds under the federal award program. Cause ? Based on guidance received from the grantor, the Foundation relied solely on certifications received (with or without supporting documentation submitted) in order to disburse funds under the federal award program. Effect ? Potential disbursements of federal awards for un-allowed costs/activities or in an improper period of availability. Questioned costs ? Unknown Auditors? recommendation ? Policies and procedures should be designed, implemented, and monitored to ensure that detailed supporting documentation is obtained and reviewed for all disbursements in accordance with federal award requirements. Management response and current status ? See management corrective action plan
Finding 2022-002
2022-002 ? SIGNIFICANT DEFICIENCY ? Internal Controls over Reporting U.S. Department of Treasury ? Passed through the State of Alabama Department of Treasury ? COVID 19 Coronavirus State and Local Fiscal Recovery Fund ? ALN #21.027 ? Program Year 2022 Criteria ? Per 2 CFR Subpart D - 200.329(a), non-federal entities are responsible for oversight of the operations of federal award supported activities and must monitor its activities under federal awards to assure compliance with applicable federal requirements and performance expectations are being achieved. In addition, per CFR 200.303(a), non-federal entities are required to establish and maintain effective internal controls over federal awards. Condition ? The Foundation did not maintain supporting documentation of the proper review and approval of the required final report for the federal award program. Cause ? Appropriate policies and procedures were not implemented by the Foundation to maintain documentation of the review and approval of the final report for the federal award program. Effect ? Lack of documentation of monitoring could lead to improper monitoring of federal award activity and possible misuse of funds. Questioned Costs ? None Auditors? Recommendation ? Policies and procedures should be designed, implemented, and monitored to ensure that documentation is maintained for the Foundation?s monitoring of its federal award program in accordance with federal award requirements. Management response and current status ? See management corrective action plan
Finding 2022-003
2022-003 ? SIGNIFICANT DEFICIENCY ? Claims Payments Made Based on Incorrect Calculations of Amounts to be Reimbursed (Continued) Condition ? For 3 of 60 disbursements sampled, reimbursed claims amounts included un-allowable costs due to the reimbursement calculations being performed incorrectly in the determination of the appropriate reimbursement amount. Cause ? As a result of the Foundation?s reliance solely on certifications received, amounts were not appropriately disbursed under the federal award program. Effect ? Claims payments included amounts that were not chargeable or assignable to the federal award in accordance with relative benefits received. Questioned Costs ? $148,871 known questioned costs (total amounts paid based on incorrect reimbursement calculations), $1,092,230 likely questioned costs ? amount extrapolated to entire population based on % of known questioned costs. Auditors? Recommendation ? Policies and procedures should be designed, implemented, and monitored which ensure that detailed supporting documentation is obtained and reviewed for all disbursements in accordance with federal award requirements. In addition, all calculations of amounts to be reimbursed should be appropriately recalculated to ensure the proper amount is included in the claims payments. Management response and current status ? See management corrective action plan