Audit 27194

FY End
2022-12-31
Total Expended
$16.02M
Findings
4
Programs
9
Organization: McR Health, Inc. (FL)
Year: 2022 Accepted: 2023-08-04

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
36538 2022-001 Material Weakness - N
36539 2022-001 Material Weakness - N
612980 2022-001 Material Weakness - N
612981 2022-001 Material Weakness - N

Contacts

Name Title Type
KV6YNZRTNKC3 Dan Coe Auditee
9417764008 Lorri Kidder Auditor
No contacts on file

Notes to SEFA

Title: 2. Summary of Significant Accounting Policies Accounting Policies: 1. Basis of PresentationThe accounting policies and presentation of the Schedule of Expenditures of Federal Awards(SEFA) have been designed to conform to generally accepted accounting principles, including thereporting and compliance requirements of the Title 2 U.S. Code of Federal Regulations Part 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). The amounts reported on the schedule have been reconciled to and are inmaterial agreement with amounts recorded in the Organizations accounting records from whichthe basic consolidated financial statements have been reported.For purposes of the SEFA, federal awards include all grants, contracts, and similar agreementsentered into directly with the federal government and other pass-through entities. TheOrganization has obtained the Assistance Listing Number (ALN) numbers to ensure that allprograms have been identified in the schedule. ALN numbers have been appropriately listed byapplicable programs. Federal programs with different ALN numbers that are closely relatedbecause they share common compliance requirements area defined as a cluster by the UniformGuidance. A cluster is separately identified in the SEFA. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Expenditures reported on the Schedule of Federal Expenditures are reported on the accrual basisof accounting. Such expenditures are recognized following the cost principles contained in theUniform Guidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement.The Organization has elected not to use the 10 percent de minimis indirect cost rate allowedunder the Uniform Guidance.The Organization did not expend federal awards in the form of loans or loan guarantees.The Organization did not receive any federal non-cash assistance for the fiscal year endedDecember 31, 2022.
Title: 3. Federal Pass-through Funds Accounting Policies: 1. Basis of PresentationThe accounting policies and presentation of the Schedule of Expenditures of Federal Awards(SEFA) have been designed to conform to generally accepted accounting principles, including thereporting and compliance requirements of the Title 2 U.S. Code of Federal Regulations Part 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). The amounts reported on the schedule have been reconciled to and are inmaterial agreement with amounts recorded in the Organizations accounting records from whichthe basic consolidated financial statements have been reported.For purposes of the SEFA, federal awards include all grants, contracts, and similar agreementsentered into directly with the federal government and other pass-through entities. TheOrganization has obtained the Assistance Listing Number (ALN) numbers to ensure that allprograms have been identified in the schedule. ALN numbers have been appropriately listed byapplicable programs. Federal programs with different ALN numbers that are closely relatedbecause they share common compliance requirements area defined as a cluster by the UniformGuidance. A cluster is separately identified in the SEFA. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Organization is the sub-recipient of federal funds that have been subjected to testing and arereported as expenditures and listed as federal pass-through funds.
Title: 4. Contingencies Accounting Policies: 1. Basis of PresentationThe accounting policies and presentation of the Schedule of Expenditures of Federal Awards(SEFA) have been designed to conform to generally accepted accounting principles, including thereporting and compliance requirements of the Title 2 U.S. Code of Federal Regulations Part 200,Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance). The amounts reported on the schedule have been reconciled to and are inmaterial agreement with amounts recorded in the Organizations accounting records from whichthe basic consolidated financial statements have been reported.For purposes of the SEFA, federal awards include all grants, contracts, and similar agreementsentered into directly with the federal government and other pass-through entities. TheOrganization has obtained the Assistance Listing Number (ALN) numbers to ensure that allprograms have been identified in the schedule. ALN numbers have been appropriately listed byapplicable programs. Federal programs with different ALN numbers that are closely relatedbecause they share common compliance requirements area defined as a cluster by the UniformGuidance. A cluster is separately identified in the SEFA. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Grant monies received and disbursed by the Organization are for specific purposes and are subjectto review by the grantor agencies. Such audits may result in requests for reimbursement due todisallowed expenditures. Based upon prior experience, the Organization does not believe thatsuch disallowance, if any, would have a material effect on the financial position of theOrganization. As of December 31, 2022, there were no material questioned or disallowed costsas a result of grant audits in process or completed.

Finding Details

Part III ? Schedule of Findings and Questioned Costs ? Federal Programs Item 2022-001 Special Tests and Provisions ? Wage Rate Requirements Health Infrastructure Investment Program ? Assistance Listing # 93.526 U.S. Department of Health and Human Services Federal Award Year 2022 Criteria ? 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction). Condition ? The construction charged to this program was not subject to wage rate requirement and the contracts did not have the required language. Cause ? The Organization had no policy and/or procedures in place to identify the compliance requirements and establish the necessary internal controls to ensure compliance. Questioned Costs ? Undetermined Effect ? Lack of internal controls over compliance resulted in noncompliance of the federal award as the wage rate requirement was not in compliance. Recommendation ? We recommend that the Organization establish policy and procedures to review not on the award agreement but also the OMB Compliance Supplement to develop and understanding of all compliance requirements and thus put in place internal controls to ensure compliance. Management?s Response - MCR Health has established a policy and procedures to review the contract and OMB Compliance supplement requirements for all federal and state awards to gain an understanding of the compliance requirements and will have in place internal controls to ensure compliance.
Part III ? Schedule of Findings and Questioned Costs ? Federal Programs Item 2022-001 Special Tests and Provisions ? Wage Rate Requirements Health Infrastructure Investment Program ? Assistance Listing # 93.526 U.S. Department of Health and Human Services Federal Award Year 2022 Criteria ? 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction). Condition ? The construction charged to this program was not subject to wage rate requirement and the contracts did not have the required language. Cause ? The Organization had no policy and/or procedures in place to identify the compliance requirements and establish the necessary internal controls to ensure compliance. Questioned Costs ? Undetermined Effect ? Lack of internal controls over compliance resulted in noncompliance of the federal award as the wage rate requirement was not in compliance. Recommendation ? We recommend that the Organization establish policy and procedures to review not on the award agreement but also the OMB Compliance Supplement to develop and understanding of all compliance requirements and thus put in place internal controls to ensure compliance. Management?s Response - MCR Health has established a policy and procedures to review the contract and OMB Compliance supplement requirements for all federal and state awards to gain an understanding of the compliance requirements and will have in place internal controls to ensure compliance.
Part III ? Schedule of Findings and Questioned Costs ? Federal Programs Item 2022-001 Special Tests and Provisions ? Wage Rate Requirements Health Infrastructure Investment Program ? Assistance Listing # 93.526 U.S. Department of Health and Human Services Federal Award Year 2022 Criteria ? 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction). Condition ? The construction charged to this program was not subject to wage rate requirement and the contracts did not have the required language. Cause ? The Organization had no policy and/or procedures in place to identify the compliance requirements and establish the necessary internal controls to ensure compliance. Questioned Costs ? Undetermined Effect ? Lack of internal controls over compliance resulted in noncompliance of the federal award as the wage rate requirement was not in compliance. Recommendation ? We recommend that the Organization establish policy and procedures to review not on the award agreement but also the OMB Compliance Supplement to develop and understanding of all compliance requirements and thus put in place internal controls to ensure compliance. Management?s Response - MCR Health has established a policy and procedures to review the contract and OMB Compliance supplement requirements for all federal and state awards to gain an understanding of the compliance requirements and will have in place internal controls to ensure compliance.
Part III ? Schedule of Findings and Questioned Costs ? Federal Programs Item 2022-001 Special Tests and Provisions ? Wage Rate Requirements Health Infrastructure Investment Program ? Assistance Listing # 93.526 U.S. Department of Health and Human Services Federal Award Year 2022 Criteria ? 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Nonfederal entities shall include in their construction contracts subject to the Wage Rate Requirements a provision that the contractor or subcontractor comply with those requirements and the DOL regulations (29 CFR Part 5, Labor Standards Provisions Applicable to Contracts Governing Federally Financed and Assisted Construction). Condition ? The construction charged to this program was not subject to wage rate requirement and the contracts did not have the required language. Cause ? The Organization had no policy and/or procedures in place to identify the compliance requirements and establish the necessary internal controls to ensure compliance. Questioned Costs ? Undetermined Effect ? Lack of internal controls over compliance resulted in noncompliance of the federal award as the wage rate requirement was not in compliance. Recommendation ? We recommend that the Organization establish policy and procedures to review not on the award agreement but also the OMB Compliance Supplement to develop and understanding of all compliance requirements and thus put in place internal controls to ensure compliance. Management?s Response - MCR Health has established a policy and procedures to review the contract and OMB Compliance supplement requirements for all federal and state awards to gain an understanding of the compliance requirements and will have in place internal controls to ensure compliance.