FAC Explorer

Audit 291992

FY End
2022-06-30
Total Expended
$2.11M
Findings
6
Programs
5
Organization: Bestcare Treatment Services (OR)
Year: 2022 Accepted: 2024-02-23
Auditor: Aldrich CPAS + Advisors LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
370418 2022-002 Significant Deficiency Yes P
370419 2022-003 Significant Deficiency Yes I
370420 2022-003 Significant Deficiency Yes I
946860 2022-002 Significant Deficiency Yes P
946861 2022-003 Significant Deficiency Yes I
946862 2022-003 Significant Deficiency Yes I

Programs

ALN Program Spent Major Findings
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $803,487 Yes 1
93.788 Medical Assistance Program $635,400 Yes 2
93.959 Block Grants for Prevention and Treatment of Substance Abuse $333,649 - 0
93.498 Provider Relief Fund $265,804 - 0
93.958 Block Grants for Community Mental Health Services $9,997 - 0

Contacts

Name Title Type
XMQMS4RFVVP9 Rhoda Navarra Auditee
5413167497 Andy Maffia Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: BestCare Treatment Services did not elect to use the 10% de minimus cost rate as covered in the Uniform Guidance 2 CFR section 200.414 Indirect costs. The accompanying schedule of expenditures of federal awards includes the federal grant activity of BestCare Treatment Services, Inc. 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).
Title: Summary of Signifcant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: BestCare Treatment Services did not elect to use the 10% de minimus cost rate as covered in the Uniform Guidance 2 CFR section 200.414 Indirect costs. Expenditures reported on the Schedule 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 allowed or are limited as to reimbursement. The Organization has not elected to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Provider Relief Fund Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, where certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: BestCare Treatment Services did not elect to use the 10% de minimus cost rate as covered in the Uniform Guidance 2 CFR section 200.414 Indirect costs. The United States Department of Health and Human Services (HHS) has indicated the Provider Relief Fund (PRF) funds on the Schedule be reported corresponding to reporting requirements of the Health Resources and Services Administration (HRSA) PRF Reporting Portal (the Portal). Payments from HHS for PRF are assigned to Payment Received Periods (each, a Period) based upon the date each payment from the PRF was received. Each Period has a specified Period of Availiability and timing of reporting requirements. Entities report into the Portal after each Period's deadline to use the funds (i.e., after the end of the Period of Availability). The Schedule includes $265,804 of PRF funds received from HHS on August 18, 2020.

Finding Details

Finding 2022-002
Criteria: Per section 200.302b of the Uniform Grant Guidance, the financial management system must provide written procedures to implement the requirements related to cash management, procurement, and allowability of costs in accordance with requirements of Uniform Grant Guidance. Per section 200.303, the organization must also evaluate and monitor their compliance with statutes, regulations, and the terms and conditions of Federal awards. Condition: BestCare receives federal funds as portions of County agreements. The amount of federal funds included in the award is not provided to BestCare until the end of the fiscal year. Those responsible for monitoring compliance of these awards have knowledge of the award itself but may not have knowledge of the federal requirements. Cause: Management was not able to determine what award amounts were subject to federal requirements until year end. Effect: BestCare could be out of compliance on some requirements due to lack of policy and process to monitor compliance. Questioned Costs: None Recommendation: Management should ensure that all personnel responsible for monitoring grant compliance receive the proper training on the requirements for federal funds. BestCare should develop policies and procedures to ensure compliance with both grant and federal requirements. Response: BestCare is working with an outside consulting company to put systems in place to monitor contract revenue and their reporting requirements. The work with the outside consulting company also includes staff training to inform and document the processes need to ensure compliance with procurement and reporting requirements.
Finding 2022-003
Criteria: Per section 200.318 (a), the non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in section 200.317 through section 200.327. Condition: BestCare has a procurement policy but it does not have the required thresholds for which bids must be obtained. Cause: As BestCare has just started receiving federal funds, they did not have the necessary policies and procedures in place to comply with the Uniform Grant Guidance. Effect: Purchases over the specified thresholds may not have obtained bids in accordance with requirements. Questioned Costs:None Recommendation: Management should review their financial policies to ensure they are in compliance with federal standards. Once adopted, the policies need to be followed and enforced. Response: BestCare is in the process of re-writing its procurement policy for purchases to be in compliance with federal standards and will seek outside assistance in doing so if needed.
Finding 2022-003
Criteria: Per section 200.318 (a), the non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in section 200.317 through section 200.327. Condition: BestCare has a procurement policy but it does not have the required thresholds for which bids must be obtained. Cause: As BestCare has just started receiving federal funds, they did not have the necessary policies and procedures in place to comply with the Uniform Grant Guidance. Effect: Purchases over the specified thresholds may not have obtained bids in accordance with requirements. Questioned Costs:None Recommendation: Management should review their financial policies to ensure they are in compliance with federal standards. Once adopted, the policies need to be followed and enforced. Response: BestCare is in the process of re-writing its procurement policy for purchases to be in compliance with federal standards and will seek outside assistance in doing so if needed.
Finding 2022-002
Criteria: Per section 200.302b of the Uniform Grant Guidance, the financial management system must provide written procedures to implement the requirements related to cash management, procurement, and allowability of costs in accordance with requirements of Uniform Grant Guidance. Per section 200.303, the organization must also evaluate and monitor their compliance with statutes, regulations, and the terms and conditions of Federal awards. Condition: BestCare receives federal funds as portions of County agreements. The amount of federal funds included in the award is not provided to BestCare until the end of the fiscal year. Those responsible for monitoring compliance of these awards have knowledge of the award itself but may not have knowledge of the federal requirements. Cause: Management was not able to determine what award amounts were subject to federal requirements until year end. Effect: BestCare could be out of compliance on some requirements due to lack of policy and process to monitor compliance. Questioned Costs: None Recommendation: Management should ensure that all personnel responsible for monitoring grant compliance receive the proper training on the requirements for federal funds. BestCare should develop policies and procedures to ensure compliance with both grant and federal requirements. Response: BestCare is working with an outside consulting company to put systems in place to monitor contract revenue and their reporting requirements. The work with the outside consulting company also includes staff training to inform and document the processes need to ensure compliance with procurement and reporting requirements.
Finding 2022-003
Criteria: Per section 200.318 (a), the non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in section 200.317 through section 200.327. Condition: BestCare has a procurement policy but it does not have the required thresholds for which bids must be obtained. Cause: As BestCare has just started receiving federal funds, they did not have the necessary policies and procedures in place to comply with the Uniform Grant Guidance. Effect: Purchases over the specified thresholds may not have obtained bids in accordance with requirements. Questioned Costs:None Recommendation: Management should review their financial policies to ensure they are in compliance with federal standards. Once adopted, the policies need to be followed and enforced. Response: BestCare is in the process of re-writing its procurement policy for purchases to be in compliance with federal standards and will seek outside assistance in doing so if needed.
Finding 2022-003
Criteria: Per section 200.318 (a), the non-Federal entity must have and use documented procurement procedures, consistent with State, local, and tribal laws and regulations and the standards of this section, for the acquisition of property or services required under a Federal award or subaward. The non-Federal entity's documented procurement procedures must conform to the procurement standards identified in section 200.317 through section 200.327. Condition: BestCare has a procurement policy but it does not have the required thresholds for which bids must be obtained. Cause: As BestCare has just started receiving federal funds, they did not have the necessary policies and procedures in place to comply with the Uniform Grant Guidance. Effect: Purchases over the specified thresholds may not have obtained bids in accordance with requirements. Questioned Costs:None Recommendation: Management should review their financial policies to ensure they are in compliance with federal standards. Once adopted, the policies need to be followed and enforced. Response: BestCare is in the process of re-writing its procurement policy for purchases to be in compliance with federal standards and will seek outside assistance in doing so if needed.