Audit 298583

FY End
2023-06-30
Total Expended
$34.39M
Findings
2
Programs
18
Year: 2023 Accepted: 2024-03-27
Auditor: Cohnreznick LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
386160 2023-001 Material Weakness - L
962602 2023-001 Material Weakness - L

Programs

ALN Program Spent Major Findings
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $12.31M - 0
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $5.17M Yes 0
93.268 Discovery and Applied Research for Technological Innovations to Improve Human Health $2.63M - 0
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $1.41M Yes 1
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $768,388 - 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $746,407 - 0
93.914 Hiv Emergency Relief Project Grants $539,872 - 0
93.527 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $488,677 Yes 0
93.918 Grants to Provide Outpatient Early Intervention Services with Respect to Hiv Disease $478,925 - 0
93.926 Healthy Start Initiative $300,086 - 0
93.994 Maternal and Child Health Services Block Grant to the States $277,156 - 0
93.778 Medical Assistance Program $226,540 - 0
32.006 Covid-19 Telehealth Program $197,529 - 0
93.870 Grants to States for Operation of Qualified High-Risk Pools $178,289 - 0
93.217 Family Planning_services $153,872 - 0
93.526 Affordable Care Act (aca) Grants for Capital Development in Health Centers $96,350 - 0
93.958 Block Grants for Community Mental Health Services $74,020 - 0
93.767 Children's Health Insurance Program $38,561 - 0

Contacts

Name Title Type
NW9ZBRS2RRN7 Douglas Colon Auditee
7184831270 Steven D. Schwartz Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accual 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. De Minimis Rate Used: N Rate Explanation: The Center elected not 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 award activity of Morris Heights Health Center, Inc. (the "Center") under programs of the federal government for the fiscal year ended June 30, 2023. 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"). Because the Schedule presents only a selected portion of the operations of the Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Center.
Title: Nonmonetary Assistance Accounting Policies: Expenditures reported on the Schedule are reported on the accual 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. De Minimis Rate Used: N Rate Explanation: The Center elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. Nonmonetary assistance is reported in the Schedule at the fair value of the WIC checks and vaccinations received. The total federal share of the food instruments distributed by the Center amounted to $10,351,302, and is included in the Schedule. The total federal share of the vaccinations distributed by the Center amounted to $2,627,213. These amounts are included in the Schedule.
Title: COVID-19 - Provider Relief Fund and American Rescue Plan ("ARP") Rural Distribution Assistance Listing Number 93.498 Accounting Policies: Expenditures reported on the Schedule are reported on the accual 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. De Minimis Rate Used: N Rate Explanation: The Center elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. For the HHS awards related to the Provider Relief Fund and American Rescue Plan ("ARP") Rural Distribution ("PRF") program, HHS has indicated the amounts on the schedule be reported corresponding to reporting requirements of the HRSA PRF Reporting 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 Availability and timing of reporting requirements. Entities report into the HRSA PRF Reporting Portal after each Period's deadline to use the funds (i.e., after the end of the Period of Availability). The schedule includes $1,411,276 received from HHS between July 1, 2021 through December 31, 2021. In accordance with guidance from HHS, this amount is presented as Period 4. Such amount was recognized as DHHS grant revenue in the consolidated financial statements in the year ended June 30, 2022.

Finding Details

Section III - Federal Awards Findings and Questioned Costs Item 2023-001 – Accuracy of Reporting to the PRF Portal: U.S. Department of Health and Human Services, COVID-19: Provider Relief Fund and American Rescue Plan (“ARP”) Rural Distribution: Assistance Listing Number 93.498 – Reporting (Material Weakness) Criteria: The Coronavirus Aid, Relief, and Economic Security (CARES) Act and American Rescue Plan ("ARP") Act of 2021 appropriated funds to reimburse eligible healthcare providers for health care related expenses or lost revenues attributable to COVID-19. These funds were distributed by Health Resources and Services Administration ("HRSA"). HRSA developed the Provider Relief Fund ("PRF") Reporting Portal to enable PRF and ARP Rural recipients to comply with mandatory reporting requirements. Statement of Condition: During our audit of the year ended June 30, 2023, we noted that the Center's submission to the PRF Portal included inconsistencies with the underlying supporting accounting records. Cause: Due to the timing of the completion of the audit and the portal report submission deadline, certain auditrelated adjustments were not included in the report submitted to the PRF portal. Effect: The Center’s report in the PRF portal does not agree to the underlying supporting accounting records. Questioned costs: None Context: Although there were inconsistencies between the actual revenue amounts reported in the PRF portal and the underlying supporting accounting records, the Center had an adequate amount of lost revenue to earn the PRF funding received. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend that the Center strengthen its system of internal controls to ensure that all reporting that is done and submitted is consistent with requirements and instructions as provided by regulatory agencies. Management response: Management is in agreement with the audit finding that the PRF portal submission was not consistent with the underlying supporting accounting records. Measures will be taken to implement controls that will ensure that reports are reviewed and agreed to supporting underlying accounting records before they are submitted.
Section III - Federal Awards Findings and Questioned Costs Item 2023-001 – Accuracy of Reporting to the PRF Portal: U.S. Department of Health and Human Services, COVID-19: Provider Relief Fund and American Rescue Plan (“ARP”) Rural Distribution: Assistance Listing Number 93.498 – Reporting (Material Weakness) Criteria: The Coronavirus Aid, Relief, and Economic Security (CARES) Act and American Rescue Plan ("ARP") Act of 2021 appropriated funds to reimburse eligible healthcare providers for health care related expenses or lost revenues attributable to COVID-19. These funds were distributed by Health Resources and Services Administration ("HRSA"). HRSA developed the Provider Relief Fund ("PRF") Reporting Portal to enable PRF and ARP Rural recipients to comply with mandatory reporting requirements. Statement of Condition: During our audit of the year ended June 30, 2023, we noted that the Center's submission to the PRF Portal included inconsistencies with the underlying supporting accounting records. Cause: Due to the timing of the completion of the audit and the portal report submission deadline, certain auditrelated adjustments were not included in the report submitted to the PRF portal. Effect: The Center’s report in the PRF portal does not agree to the underlying supporting accounting records. Questioned costs: None Context: Although there were inconsistencies between the actual revenue amounts reported in the PRF portal and the underlying supporting accounting records, the Center had an adequate amount of lost revenue to earn the PRF funding received. Identification as a repeat finding: This is not a repeat finding. Recommendation: We recommend that the Center strengthen its system of internal controls to ensure that all reporting that is done and submitted is consistent with requirements and instructions as provided by regulatory agencies. Management response: Management is in agreement with the audit finding that the PRF portal submission was not consistent with the underlying supporting accounting records. Measures will be taken to implement controls that will ensure that reports are reviewed and agreed to supporting underlying accounting records before they are submitted.