FAC Explorer

Audit 28336

FY End
2022-06-30
Total Expended
$807,175
Findings
2
Programs
1
Organization: Choices Coordinated Care Solutions, Inc. (IN)
Year: 2022 Accepted: 2023-03-26
Auditor: Blue & CO LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
36165 2022-002 Significant Deficiency - L
612607 2022-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $807,175 Yes 1

Contacts

Name Title Type
CBY7F25N8B22 Karen Anders Auditee
3179033154 Shawn Williams Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the SEFA 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. Choices has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (SEFA) for the year ended June 30, 2022 includes the federal grant activity of Choices Coordinated Care Solutions, Inc. (Choices) and is presented on the accrual basis of accounting. The information in the SEFA is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. The basic consolidated financial statement classifications may include other financial activity for reporting purposes. Therefore, some of the amounts presented in the SEFA may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements.
Title: Sub-recipient Pass Through Accounting Policies: Expenditures reported on the SEFA 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. Choices has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Choices did not pass through federal awards to sub-recipients during 2022.
Title: Provider Relief Funds Accounting Policies: Expenditures reported on the SEFA 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. Choices has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Under terms and conditions of the Provider Relief Funds (PRF) under the Coronavirus Aid, Relief, and Economic Security Act, Choices is required to report COVID-19 related expenses and lost revenue to the U.S. Department of Health and Human Services (HHS). Guidance from HHS has required the reporting of the COVID-19 related expenses and lost revenue in certain reporting periods based on when the funds were received.The 2022 SEFA includes PRF of approximately $807,000 which was received by Choices between July 1, 2020 and June 30, 2021. Choices recognized approximately $807,000 as revenue in its 2021 consolidated statement of activities and changes in net assets as the terms and conditions of the PRF grant were satisfied by Choices during 2021. HHS required these PRF amounts be reported on the 2022 SEFA rather than the 2021 SEFA.During 2022, Choices received PRF of approximately $634,000 and recognized this amount as revenue in its 2022 consolidated statement of activities and changes in net assets as the terms and conditions of the PRF grant were satisfied by Choices during 2022. HHS requires these PRF amounts be reported on the 2023 SEFA rather than the 2022 SEFA.
Title: Fair Market Value of Donated Personal Protective Equipment (Unaudited) Accounting Policies: Expenditures reported on the SEFA 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. Choices has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. During 2022, Choices did not receive donated personal protective equipment from federal sources.

Finding Details

Finding 2022-002
2022-002 ? Significant deficiency related to Provider Relief Fund (PRF) reporting to the U.S. Department of Health and Human Services (HHS) for CFDA #93.498. Condition ? Management did not accurately and appropriately report to HHS direct expenditures to prepare, prevent, or respond to the COVID-19 pandemic and/or lost revenues based on terms established by HHS and Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Criteria ? To substantiate PRF receipts, management is required to report to HHS direct expenditures to prepare, prevent or respond to the COVID-19 pandemic and/or lost revenues based on terms established by HHS and in accordance with requirements of Uniform Guidance. Questioned costs - $-0- Cause ? This instance of noncompliance was the result of management?s interpretation of direct expenditures to prepare, prevent, or respond to the COVID-19 pandemic and/or lost revenues based on terms established by HHS and Uniform Guidance. Choices reported expenditures not directly associated with preparation, prevention, or response to the COVID-19 pandemic and did not report lost revenues incurred. Effect ? An instance of noncompliance as management did not accurately and appropriately report to HHS direct expenditures to prepare, prevent, or respond to the COVID-19 pandemic and/or lost revenues based on terms established by HHS and Uniform Guidance. Context ? HHS and Uniform Guidance requirements direct the grant recipient to comply with reporting requirements. Recommendation ? We recommend management prepare and retain alternative support for actual direct expenditures incurred to prepare, prevent, or respond to the COVID-19 pandemic as well as lost revenues incurred based on terms established by HHS and Uniform Guidance. This alternative support may need to be provided to HHS or contracted representative if a subsequent compliance review were to be required. Views of Responsible Officials and Planned Corrective Actions - Management concurs with audit finding 2022-002. Choices is preparing alternative support for actual direct expenditures incurred to prepare, prevent, or respond to the COVID-19 pandemic as well as lost revenues incurred based on terms established by HHS and Uniform Guidance. From alternative support prepared, Choices believes they can support the award with lost revenues that will be reported during the period four submission, and they do not anticipate that any PRF awarded will be required to be returned
Finding 2022-002
2022-002 ? Significant deficiency related to Provider Relief Fund (PRF) reporting to the U.S. Department of Health and Human Services (HHS) for CFDA #93.498. Condition ? Management did not accurately and appropriately report to HHS direct expenditures to prepare, prevent, or respond to the COVID-19 pandemic and/or lost revenues based on terms established by HHS and Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Criteria ? To substantiate PRF receipts, management is required to report to HHS direct expenditures to prepare, prevent or respond to the COVID-19 pandemic and/or lost revenues based on terms established by HHS and in accordance with requirements of Uniform Guidance. Questioned costs - $-0- Cause ? This instance of noncompliance was the result of management?s interpretation of direct expenditures to prepare, prevent, or respond to the COVID-19 pandemic and/or lost revenues based on terms established by HHS and Uniform Guidance. Choices reported expenditures not directly associated with preparation, prevention, or response to the COVID-19 pandemic and did not report lost revenues incurred. Effect ? An instance of noncompliance as management did not accurately and appropriately report to HHS direct expenditures to prepare, prevent, or respond to the COVID-19 pandemic and/or lost revenues based on terms established by HHS and Uniform Guidance. Context ? HHS and Uniform Guidance requirements direct the grant recipient to comply with reporting requirements. Recommendation ? We recommend management prepare and retain alternative support for actual direct expenditures incurred to prepare, prevent, or respond to the COVID-19 pandemic as well as lost revenues incurred based on terms established by HHS and Uniform Guidance. This alternative support may need to be provided to HHS or contracted representative if a subsequent compliance review were to be required. Views of Responsible Officials and Planned Corrective Actions - Management concurs with audit finding 2022-002. Choices is preparing alternative support for actual direct expenditures incurred to prepare, prevent, or respond to the COVID-19 pandemic as well as lost revenues incurred based on terms established by HHS and Uniform Guidance. From alternative support prepared, Choices believes they can support the award with lost revenues that will be reported during the period four submission, and they do not anticipate that any PRF awarded will be required to be returned