FAC Explorer

Audit 28712

FY End
2022-08-31
Total Expended
$1.24M
Findings
4
Programs
4
Organization: Los Angeles Jewish Home for the Aging (CA)
Year: 2022 Accepted: 2023-05-30
Auditor: Moss Adams

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
28100 2022-002 Significant Deficiency Yes L
28101 2022-003 Significant Deficiency - L
604542 2022-002 Significant Deficiency Yes L
604543 2022-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $1.02M Yes 2
84.268 Federal Direct Student Loans $131,374 - 0
84.063 Federal Pell Grant Program $45,432 - 0
84.425 Education Stabilization Fund $18,891 - 0

Contacts

Name Title Type
GM6LKUNMQHU8 Mark Debaca Auditee
8552273745 Stelian.damu@mossadams.com Auditor
No contacts on file

Notes to SEFA

Title: Note 1 Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Under the accrual basis of accounting, expenditures are recognized when incurred. 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: LAJH has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Los Angeles Jewish Home for the Aging (LAJH) under programs of the federal government for the year ended August 31, 2022. The information in the Schedule is presented in accordance with the requirements of the Title 2 U.S. Code of Federal Regulations (CFR) 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 LAJH, it is not intended to and does not present the financial position, results of operations, or cash flows of LAJH. LAJH's reporting entity is defined in Note 1 of the consolidated financial statements. All federal awards from federal agencies are included in the Schedule. The Schedule includes the grant income of Eisenberg Village of the Los Angeles Jewish Home for the Aging with the Tax Identification Number of 95-1691015, Grancell Village of the Los Angeles Jewish Home for the Aging with the Tax Identification Number of 95-1831045, and the Annenberg School of Nursing with the Tax Identification Number of 20-8449705.
Title: Note 3 Provider Relief Fund Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Under the accrual basis of accounting, expenditures are recognized when incurred. 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: LAJH has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. In accordance with guidance from the U.S. Department of Health and Human Services (DHHS), the Home included the Reporting Period 2 (funds received between July 1, 2020 and December 31, 2020) and Reporting Period 3 (funds received between January 1, 2021 and June 30, 2021) expenditures for Provider Relief Fund Assistance Listing No. 93.498 of $1,021,543 in the Schedule for the year ended August 31, 2022, to align with DHHS reporting guidelines. In accordance with U.S. GAAP, the total amount of $1,021,543 of Provider Relief Fund Assistance received by the Home was recognized as revenue during the year ended August 31, 2021, and is included in beginning net assets as of and for the year ended August 31, 2022.

Finding Details

Finding 2022-002
FINDING 2022-002 Reporting ? Significant Deficiency in Internal Controls Over Compliance. See Schedule of Findings and Questioned Costs for table. Criteria: LAJH should have appropriate internal controls in place to ensure that reporting requirements are met and amounts utilized in reports are calculated accurately and in accordance with 45 CFR 75.342. Condition/Context: The Period 2 and Period 3 Provider Relief Fund (PRF) reports submitted during the year ended August 31, 2022, were tested. LAJH elected Lost Revenues Option 1 to report lost revenue based on quarterly actuals. Amounts reported for each quarter were not calculated accurately. For each quarter reported, LAJH omitted a portion of the revenue which resulted in the revenue reported to be inaccurate and understated. Cause: Revenue amounts reported were not accurately reconciled to actual revenues as LAJH did not have a process in place to reconcile actual revenues reported on the PRF reports to LAJH?s consolidated financial statements. Effect: Errors were made in reporting quarterly Total Revenue/Net Charges on the Period 2 and Period 3 PRF reports. However, we note there was no impact to total funding received or retained by LAJH due to the error. Independent calculations of the lost revenue utilizing the amounts that should have been reported were performed. Based on calculations, lost revenue exceeded total PRF amounts received in Period 1, Period 2, and Period 3. The total amount of funding recognized on the basis of lost revenue for Period 2 and Period 3 was accurate and the amount reported per the Schedule of Expenditures of Federal Awards was also accurate. Questioned Costs: None. Repeat finding: This is a repeat of finding 2021-006. Recommendation: Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Review controls should be in place by someone other than the preparer of the report to ensure information is accurate prior to submission of the report. Views of responsible officials: We agree with the finding but want to emphasize that the filing of Period 2 and Period 3 PRF reports had already been completed before the issuance of finding 2021-006. Since that time, we have strengthened our review procedures over grant reporting by having the corporate controller review all PRF reports for accuracy and agree amounts to LAJH?s financial statements prior to filing. We have also improved our financial reports to assist with the verification of the report preparer?s work.
Finding 2022-003
FINDING 2022-003 Reporting ? Significant Deficiency in Internal Controls Over Compliance. See Schedule of Findings and Questioned Costs for table. Criteria: LAJH should have appropriate internal controls in place to ensure that reporting requirements are met in accordance with 45 CFR 75.342. Condition/Context: During our audit, we tested the Period 2 PRF report for Eisenberg Village of the Los Angeles Jewish Home for the Aging (?Eisenberg Village?) and the Period 2 and Period 3 PRF reports for Grancell Village of the Los Angeles Jewish Home for the Aging (?Grancell Village?). The Period 2 PRF Report for Eisenberg Village and the Period 3 PRF Report for Grancell Village were submitted prior to the deadline. The Period 2 PRF report for Grancell Village was submitted on April 5, 2022. The deadline to submit that report was March 31, 2022. Cause: Deadline was not monitored to ensure timely submission of the Period 2 PRF Report for Grancell Village. Effect: Providers who do not submit a completed report are considered non-compliant with the Terms and Conditions of the award. Questioned Costs: None. Repeat finding: This is not a repeat finding. Recommendation: Policies and procedures over federal grant reporting should be modified to ensure reports are submitted in a timely manner. Views of responsible officials: We agree with the filing and believe the filing of the Period 2 PRF report for Grancell Village was an unusual occurrence. We have implemented new processes to make sure our third party prepares are engaged on-time with enough lead time to prepare the reports. Since the filing of the Period 2 PRF report for Grancell Village we have filed all other reports timely.
Finding 2022-002
FINDING 2022-002 Reporting ? Significant Deficiency in Internal Controls Over Compliance. See Schedule of Findings and Questioned Costs for table. Criteria: LAJH should have appropriate internal controls in place to ensure that reporting requirements are met and amounts utilized in reports are calculated accurately and in accordance with 45 CFR 75.342. Condition/Context: The Period 2 and Period 3 Provider Relief Fund (PRF) reports submitted during the year ended August 31, 2022, were tested. LAJH elected Lost Revenues Option 1 to report lost revenue based on quarterly actuals. Amounts reported for each quarter were not calculated accurately. For each quarter reported, LAJH omitted a portion of the revenue which resulted in the revenue reported to be inaccurate and understated. Cause: Revenue amounts reported were not accurately reconciled to actual revenues as LAJH did not have a process in place to reconcile actual revenues reported on the PRF reports to LAJH?s consolidated financial statements. Effect: Errors were made in reporting quarterly Total Revenue/Net Charges on the Period 2 and Period 3 PRF reports. However, we note there was no impact to total funding received or retained by LAJH due to the error. Independent calculations of the lost revenue utilizing the amounts that should have been reported were performed. Based on calculations, lost revenue exceeded total PRF amounts received in Period 1, Period 2, and Period 3. The total amount of funding recognized on the basis of lost revenue for Period 2 and Period 3 was accurate and the amount reported per the Schedule of Expenditures of Federal Awards was also accurate. Questioned Costs: None. Repeat finding: This is a repeat of finding 2021-006. Recommendation: Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Review controls should be in place by someone other than the preparer of the report to ensure information is accurate prior to submission of the report. Views of responsible officials: We agree with the finding but want to emphasize that the filing of Period 2 and Period 3 PRF reports had already been completed before the issuance of finding 2021-006. Since that time, we have strengthened our review procedures over grant reporting by having the corporate controller review all PRF reports for accuracy and agree amounts to LAJH?s financial statements prior to filing. We have also improved our financial reports to assist with the verification of the report preparer?s work.
Finding 2022-003
FINDING 2022-003 Reporting ? Significant Deficiency in Internal Controls Over Compliance. See Schedule of Findings and Questioned Costs for table. Criteria: LAJH should have appropriate internal controls in place to ensure that reporting requirements are met in accordance with 45 CFR 75.342. Condition/Context: During our audit, we tested the Period 2 PRF report for Eisenberg Village of the Los Angeles Jewish Home for the Aging (?Eisenberg Village?) and the Period 2 and Period 3 PRF reports for Grancell Village of the Los Angeles Jewish Home for the Aging (?Grancell Village?). The Period 2 PRF Report for Eisenberg Village and the Period 3 PRF Report for Grancell Village were submitted prior to the deadline. The Period 2 PRF report for Grancell Village was submitted on April 5, 2022. The deadline to submit that report was March 31, 2022. Cause: Deadline was not monitored to ensure timely submission of the Period 2 PRF Report for Grancell Village. Effect: Providers who do not submit a completed report are considered non-compliant with the Terms and Conditions of the award. Questioned Costs: None. Repeat finding: This is not a repeat finding. Recommendation: Policies and procedures over federal grant reporting should be modified to ensure reports are submitted in a timely manner. Views of responsible officials: We agree with the filing and believe the filing of the Period 2 PRF report for Grancell Village was an unusual occurrence. We have implemented new processes to make sure our third party prepares are engaged on-time with enough lead time to prepare the reports. Since the filing of the Period 2 PRF report for Grancell Village we have filed all other reports timely.