Audit 295375

FY End
2022-12-31
Total Expended
$24.67M
Findings
2
Programs
13
Organization: Bassett Healthcare Network (NY)
Year: 2022 Accepted: 2024-03-15
Auditor: Kpmg LLP

Organization Exclusion Status:

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Contacts

Name Title Type
MX9THXNRRCH5 Sandra MacDonald Auditee
6075474678 Martin Dunbar Auditor
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Notes to SEFA

Title: Basis of Accounting Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule), presents on an accrual basis, the activity of federal award programs administered by Bassett Healthcare Network (the Network), for the year ended December 31, 2022, as applicable, except for Valley Health Services and Valley Residential Services (collectively, Valley Health Services), which is subject to a separate audit in compliance with the Uniform Guidance. The information in this Schedule is presented in accordance with the 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). Because the Schedule presents only a select portion of the operations of the Network, it is not intended to, and does not, present the consolidated financial position, changes in net assets, or cash flows of the Network. De Minimis Rate Used: N Rate Explanation: Indirect costs are included in the reported expenditures to the extent such costs are allowed by the respective granting agency and are included in the federal financial reports used as the source of data presented. The Network has elected not to use the 10% diminimus indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule), presents on an accrual basis, the activity of federal award programs administered by Bassett Healthcare Network (the Network), for the year ended December 31, 2022, as applicable, except for Valley Health Services and Valley Residential Services (collectively, Valley Health Services), which is subject to a separate audit in compliance with the Uniform Guidance. The information in this Schedule is presented in accordance with the 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). Because the Schedule presents only a select portion of the operations of the Network, it is not intended to, and does not, present the consolidated financial position, changes in net assets, or cash flows of the Network.
Title: Indirect Costs Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule), presents on an accrual basis, the activity of federal award programs administered by Bassett Healthcare Network (the Network), for the year ended December 31, 2022, as applicable, except for Valley Health Services and Valley Residential Services (collectively, Valley Health Services), which is subject to a separate audit in compliance with the Uniform Guidance. The information in this Schedule is presented in accordance with the 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). Because the Schedule presents only a select portion of the operations of the Network, it is not intended to, and does not, present the consolidated financial position, changes in net assets, or cash flows of the Network. De Minimis Rate Used: N Rate Explanation: Indirect costs are included in the reported expenditures to the extent such costs are allowed by the respective granting agency and are included in the federal financial reports used as the source of data presented. The Network has elected not to use the 10% diminimus indirect cost rate allowed under the Uniform Guidance. Indirect costs are included in the reported expenditures to the extent such costs are allowed by the respective granting agency and are included in the federal financial reports used as the source of data presented. The Network has elected not to use the 10% diminimus indirect cost rate allowed under the Uniform Guidance.

Finding Details

Criteria Title 45 U.S. Code of Federal Regulations Part 75 (45 CFR 75), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, section 75.303(a) states the nonfederal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the nonfederal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Furthermore, Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR 200.308), Revision of budget and program plans, specifies that recipients of Federal awards must request prior approvals from Federal awarding agencies for 1) Change in a key person specified in the application or the Federal award, and 2) The disengagement from the project for more than three months, or a 25 percent reduction in time devoted to the project, by the approved project director or principal investigator. Condition Bassett Healthcare Network (the Network) failed to properly request approval for the disengagement of a key person specified in the Federal award application. Cause The condition found is due to lack of timeliness in communication regarding the disengagement of key personnel to the Network who are is responsible for requesting Federal awarding agency approval as well as not retaining key documentation. Possible Asserted Effect Failure to identify changes in or disengagement of key personnel and, therefore, failure to request approval from the appropriate Federal awarding agency. Questioned Costs None. Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding This is not a repeat finding. Recommendation We recommend the Network enhance the precision level and effectiveness of its internal controls related to the identification of changes to key personnel to ensure proper approval is requested timely. Further, we recommend the implementation of retention Views of Responsible Officials Recommendation accepted. Corrective action in progress. Reference the corrective action plan for further details.
Criteria Title 45 U.S. Code of Federal Regulations Part 75 (45 CFR 75), Uniform Administrative Requirements, Cost Principles, and Audit Requirements for HHS Awards, section 75.303(a) states the nonfederal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the nonfederal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Furthermore, Title 2 U.S. Code of Federal Regulations Part 200 (2 CFR 200.308), Revision of budget and program plans, specifies that recipients of Federal awards must request prior approvals from Federal awarding agencies for 1) Change in a key person specified in the application or the Federal award, and 2) The disengagement from the project for more than three months, or a 25 percent reduction in time devoted to the project, by the approved project director or principal investigator. Condition Bassett Healthcare Network (the Network) failed to properly request approval for the disengagement of a key person specified in the Federal award application. Cause The condition found is due to lack of timeliness in communication regarding the disengagement of key personnel to the Network who are is responsible for requesting Federal awarding agency approval as well as not retaining key documentation. Possible Asserted Effect Failure to identify changes in or disengagement of key personnel and, therefore, failure to request approval from the appropriate Federal awarding agency. Questioned Costs None. Statistical Sampling The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding This is not a repeat finding. Recommendation We recommend the Network enhance the precision level and effectiveness of its internal controls related to the identification of changes to key personnel to ensure proper approval is requested timely. Further, we recommend the implementation of retention Views of Responsible Officials Recommendation accepted. Corrective action in progress. Reference the corrective action plan for further details.