FAC Explorer

Audit 295493

FY End
2023-06-30
Total Expended
$785,141
Findings
6
Programs
1
Organization: Greene Acres Nursing Home Association, Inc. (AR)
Year: 2023 Accepted: 2024-03-18
Auditor: Hcj Cpa's & Advisors PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
380789 2023-001 Material Weakness - Activities Allowed/Unallowed
380790 2023-002 Material Weakness - Activities Allowed/Unallowed
380791 2023-003 Significant Deficiency Yes A
957231 2023-001 Material Weakness - Activities Allowed/Unallowed
957232 2023-002 Material Weakness - Activities Allowed/Unallowed
957233 2023-003 Significant Deficiency Yes A

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $785,141 Yes 3

Contacts

Name Title Type
WDWJQUGZN9X8 Brandon Goldsmith Auditee
8702368771 Mark Glover Auditor
No contacts on file

Notes to SEFA

Title: Note 1 Accounting Policies: This accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of Greene Acres Nursing Home Association, Inc. (the Association). The information in the 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. This accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of Greene Acres Nursing Home Association, Inc. (the Association). The information in the 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements.
Title: Note 2 Accounting Policies: This accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of Greene Acres Nursing Home Association, Inc. (the Association). The information in the 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. 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 tupes of expenditures are not allowable or are limited as to reimbursement. The Association has elected not to use the 10 percent de minimus indirect cost rate allowed under the Uniform Guidance.
Title: Note 3 Accounting Policies: This accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awards activity of Greene Acres Nursing Home Association, Inc. (the Association). The information in the 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). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The 2023 Compliance Supplement clarifies that entities who received the U.S. Department of Health and Human Services (HHS) Provider Relief Fund (PRF), Federal Assistance Listing No. 93.498, funds during period 5 (payment received between January 1, 2022 to June 30, 2022) will include those amounts on the schedule of expenditures of federal awards for June 30, 2023, fiscal year ends.

Finding Details

Finding 2023-001
Statement of condition: One of the expenditures reported on the PRF Reporting Portal for Period 5 and applied toward the award receipts was for a duplicate expenditure that had already been paid to the vendor, reported and applied towards the award receipts. Therefore, the same expenditure was paid and accounted for twice within the PRF Reporting Portal. Criteria: The Association is responsible for accurate reporting in the PRF Reporting Portal and ensuring necessary and reasonable costs are applied to the award in order to be in compliance with allowable activities, allowable costs, and reporting. Cause of condition: The procedure of review and approval by appropriate personnel and evidence by personnel sign off is in place to determine necessary and reasonable costs are apllied for compliance with allowable activities and allowable costs. However, the Association did not detect a duplicate expenditure in the review and approval process. Effect of condition: During testing, the Association proveded the same supporting invoice for two expenditures. The invoice was for $63,524 and two checks of $63,524 were paid to the vendor and applied towards receipts of this award. This resulted in questioned cost of $63,524 for the second check applied towards the award. Context: For the Provider Relief award, the detailed listing of 15 invoices that were reviewed and approved supporting the expenditures reported within the PRF Reporting Portal for Period 5 included one invoice listed twice. We tested 15 of the 15 invoice population for allowable activities and allowable costs. Applying the same invoice twice is an unallowable activity and not an allowable cost due to not being necessary and reasonable for performance of award. Recommendation: When performing the internal control of review and approval, the appropriate personnel approving should ensure that invoices have not been duplicated before payment and when reporting expenditures towards the award. Views of responsible officials and planned corrective actions: The Association agrees with the finding and will adopt the recommendation however there were additional expenditures during Period 5 that would have been in compliance with program allowable activities and allowable costs if selected for reporting in the PRF Reporting Portal.
Finding 2023-002
Statement of condition: One of the expenditures reported on the PRF Reporting Portal for Period 5 and applied toward the award receipts was for a duplicate expenditure that had already been paid to the vendor, reported and applied towards the award receipts. Therefore, the same expenditure was accounted for twice within the PRF Reporting Portal. Material Weakness: As discussed at Finding 2023-001, the internal control review and approval of award expenditures was in place and implemented but did not operate effectively as one expenditure was recorded, paid to the venfor and applied twice toward the award. This resulted in non-compliance and questioned costs of $63,524 in allowable activities, allowable costs, and reporting. Views of responsible officials and planned corrective actions: The Association agrees with the finding and will adopt the recommendation however there were additional expenditures during Period 5 that would have been in compliance with program allowable activities and allowable costs if selected for reporting in the PRF Reporting Portal.
Finding 2023-003
Statement of condition: For the Provider Relief Funds, there were no written policies and procedures. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) 200.302 (b)(6) and (7) states that the non-federal entity must establish written procedures to implement the requirements of 2 CFR 200.305 and written procedures for determining the allowability of costs in accordance with 2 CFR 200 Subpart E as well as terms and conditions of the Federal award. Cause of condition: No controls to establish written policies and procedures when Federal awards are received. Effect of condition: During testing, it was noted that there were no written policies and procedures regarding the Federal award. Context: Policies and procedures were verbally communicated or written during fieldwork to assist with testing. Recommendation: To establish written policies and procedures for Federal awards. Views of responsibile officials and planned corrective actions: Management agrees with this finding and will write policies and procedures for Federal awards.
Finding 2023-001
Statement of condition: One of the expenditures reported on the PRF Reporting Portal for Period 5 and applied toward the award receipts was for a duplicate expenditure that had already been paid to the vendor, reported and applied towards the award receipts. Therefore, the same expenditure was paid and accounted for twice within the PRF Reporting Portal. Criteria: The Association is responsible for accurate reporting in the PRF Reporting Portal and ensuring necessary and reasonable costs are applied to the award in order to be in compliance with allowable activities, allowable costs, and reporting. Cause of condition: The procedure of review and approval by appropriate personnel and evidence by personnel sign off is in place to determine necessary and reasonable costs are apllied for compliance with allowable activities and allowable costs. However, the Association did not detect a duplicate expenditure in the review and approval process. Effect of condition: During testing, the Association proveded the same supporting invoice for two expenditures. The invoice was for $63,524 and two checks of $63,524 were paid to the vendor and applied towards receipts of this award. This resulted in questioned cost of $63,524 for the second check applied towards the award. Context: For the Provider Relief award, the detailed listing of 15 invoices that were reviewed and approved supporting the expenditures reported within the PRF Reporting Portal for Period 5 included one invoice listed twice. We tested 15 of the 15 invoice population for allowable activities and allowable costs. Applying the same invoice twice is an unallowable activity and not an allowable cost due to not being necessary and reasonable for performance of award. Recommendation: When performing the internal control of review and approval, the appropriate personnel approving should ensure that invoices have not been duplicated before payment and when reporting expenditures towards the award. Views of responsible officials and planned corrective actions: The Association agrees with the finding and will adopt the recommendation however there were additional expenditures during Period 5 that would have been in compliance with program allowable activities and allowable costs if selected for reporting in the PRF Reporting Portal.
Finding 2023-002
Statement of condition: One of the expenditures reported on the PRF Reporting Portal for Period 5 and applied toward the award receipts was for a duplicate expenditure that had already been paid to the vendor, reported and applied towards the award receipts. Therefore, the same expenditure was accounted for twice within the PRF Reporting Portal. Material Weakness: As discussed at Finding 2023-001, the internal control review and approval of award expenditures was in place and implemented but did not operate effectively as one expenditure was recorded, paid to the venfor and applied twice toward the award. This resulted in non-compliance and questioned costs of $63,524 in allowable activities, allowable costs, and reporting. Views of responsible officials and planned corrective actions: The Association agrees with the finding and will adopt the recommendation however there were additional expenditures during Period 5 that would have been in compliance with program allowable activities and allowable costs if selected for reporting in the PRF Reporting Portal.
Finding 2023-003
Statement of condition: For the Provider Relief Funds, there were no written policies and procedures. Criteria: Title 2 U.S. Code of Federal Regulations (CFR) 200.302 (b)(6) and (7) states that the non-federal entity must establish written procedures to implement the requirements of 2 CFR 200.305 and written procedures for determining the allowability of costs in accordance with 2 CFR 200 Subpart E as well as terms and conditions of the Federal award. Cause of condition: No controls to establish written policies and procedures when Federal awards are received. Effect of condition: During testing, it was noted that there were no written policies and procedures regarding the Federal award. Context: Policies and procedures were verbally communicated or written during fieldwork to assist with testing. Recommendation: To establish written policies and procedures for Federal awards. Views of responsibile officials and planned corrective actions: Management agrees with this finding and will write policies and procedures for Federal awards.