Audit 300422

FY End
2023-06-30
Total Expended
$1.49M
Findings
2
Programs
2
Organization: Baptist Homes Society (PA)
Year: 2023 Accepted: 2024-03-29
Auditor: Baker Tilly US

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
389459 2023-001 Significant Deficiency - ABL
965901 2023-001 Significant Deficiency - ABL

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $1.05M Yes 1
14.182 Section 8 New Construction and Substantial Rehabilitation $438,080 - 0

Contacts

Name Title Type
RZKSKPMNHT15 Brent Foster Auditee
4125728264 Brandon Harlan Auditor
No contacts on file

Notes to SEFA

Title: 1. Basis of Presentation Accounting Policies: 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Baptist Senior Services and Controlled Entities d/b/a Baptist Senior Family (the Corporation) under programs of the federal government for the year ended June 30, 2023. 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). Because the Schedule presents only a selected portion of the operations of the Corporation, it is not intended to and does not present the consolidated financial position, changes in net assets or cash flows of the Corporation. 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting, with the exception of expenditures associated with the HHS Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution. 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. Pass-through agency identifying numbers are presented where available. 3. Provider Relief Fund and American Rescue Plan Rural Distribution For the U.S. Department of Health and Human Services (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 Health Resources and Services Administration (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 for the year ended June 30, 2023, includes expenditures and lost revenues included in the Period 4 and Period 5 PRF Reports submitted for the Corporation. The Period 4 PRF Reports include payments received for the period July 1, 2021 to December 31, 2021. The deadline to use these funds was December 31, 2022. The Period 5 PRF Reports include payments received for the period January 1, 2022 to June 30, 2022. The deadline to use these funds was June 30, 2023. The Schedule includes the following entities that received the PRF program: Legal Entity Name Tax Identification Number PRF Amount Baptist Homes Society 25-0339430 $ 1,047,095 4. Indirect Cost Rate The Corporation has not elected to use the 10% de-minimis indirect cost rate allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Corporation has not elected to use the 10% de-minimis indirect cost rate allowed under Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Baptist Senior Services and Controlled Entities d/b/a Baptist Senior Family (the Corporation) under programs of the federal government for the year ended June 30, 2023. 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). Because the Schedule presents only a selected portion of the operations of the Corporation, it is not intended to and does not present the consolidated financial position, changes in net assets or cash flows of the Corporation.
Title: 2. Summary of Significant Accounting Policies Accounting Policies: 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Baptist Senior Services and Controlled Entities d/b/a Baptist Senior Family (the Corporation) under programs of the federal government for the year ended June 30, 2023. 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). Because the Schedule presents only a selected portion of the operations of the Corporation, it is not intended to and does not present the consolidated financial position, changes in net assets or cash flows of the Corporation. 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting, with the exception of expenditures associated with the HHS Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution. 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. Pass-through agency identifying numbers are presented where available. 3. Provider Relief Fund and American Rescue Plan Rural Distribution For the U.S. Department of Health and Human Services (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 Health Resources and Services Administration (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 for the year ended June 30, 2023, includes expenditures and lost revenues included in the Period 4 and Period 5 PRF Reports submitted for the Corporation. The Period 4 PRF Reports include payments received for the period July 1, 2021 to December 31, 2021. The deadline to use these funds was December 31, 2022. The Period 5 PRF Reports include payments received for the period January 1, 2022 to June 30, 2022. The deadline to use these funds was June 30, 2023. The Schedule includes the following entities that received the PRF program: Legal Entity Name Tax Identification Number PRF Amount Baptist Homes Society 25-0339430 $ 1,047,095 4. Indirect Cost Rate The Corporation has not elected to use the 10% de-minimis indirect cost rate allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Corporation has not elected to use the 10% de-minimis indirect cost rate allowed under Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting, with the exception of expenditures associated with the HHS Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution. 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. Pass-through agency identifying numbers are presented where available.
Title: 3. Provider Relief Fund and American Rescue Plan Rural Distribution Accounting Policies: 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Baptist Senior Services and Controlled Entities d/b/a Baptist Senior Family (the Corporation) under programs of the federal government for the year ended June 30, 2023. 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). Because the Schedule presents only a selected portion of the operations of the Corporation, it is not intended to and does not present the consolidated financial position, changes in net assets or cash flows of the Corporation. 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting, with the exception of expenditures associated with the HHS Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution. 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. Pass-through agency identifying numbers are presented where available. 3. Provider Relief Fund and American Rescue Plan Rural Distribution For the U.S. Department of Health and Human Services (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 Health Resources and Services Administration (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 for the year ended June 30, 2023, includes expenditures and lost revenues included in the Period 4 and Period 5 PRF Reports submitted for the Corporation. The Period 4 PRF Reports include payments received for the period July 1, 2021 to December 31, 2021. The deadline to use these funds was December 31, 2022. The Period 5 PRF Reports include payments received for the period January 1, 2022 to June 30, 2022. The deadline to use these funds was June 30, 2023. The Schedule includes the following entities that received the PRF program: Legal Entity Name Tax Identification Number PRF Amount Baptist Homes Society 25-0339430 $ 1,047,095 4. Indirect Cost Rate The Corporation has not elected to use the 10% de-minimis indirect cost rate allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Corporation has not elected to use the 10% de-minimis indirect cost rate allowed under Uniform Guidance. For the U.S. Department of Health and Human Services (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 Health Resources and Services Administration (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 for the year ended June 30, 2023, includes expenditures and lost revenues included in the Period 4 and Period 5 PRF Reports submitted for the Corporation. The Period 4 PRF Reports include payments received for the period July 1, 2021 to December 31, 2021. The deadline to use these funds was December 31, 2022. The Period 5 PRF Reports include payments received for the period January 1, 2022 to June 30, 2022. The deadline to use these funds was June 30, 2023. The Schedule includes the following entities that received the PRF program: Legal Entity Name Tax Identification Number PRF Amount Baptist Homes Society 25-0339430 $ 1,047,095
Title: 4. Indirect Cost Rate Accounting Policies: 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Baptist Senior Services and Controlled Entities d/b/a Baptist Senior Family (the Corporation) under programs of the federal government for the year ended June 30, 2023. 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). Because the Schedule presents only a selected portion of the operations of the Corporation, it is not intended to and does not present the consolidated financial position, changes in net assets or cash flows of the Corporation. 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule are reported on the accrual basis of accounting, with the exception of expenditures associated with the HHS Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution. 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. Pass-through agency identifying numbers are presented where available. 3. Provider Relief Fund and American Rescue Plan Rural Distribution For the U.S. Department of Health and Human Services (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 Health Resources and Services Administration (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 for the year ended June 30, 2023, includes expenditures and lost revenues included in the Period 4 and Period 5 PRF Reports submitted for the Corporation. The Period 4 PRF Reports include payments received for the period July 1, 2021 to December 31, 2021. The deadline to use these funds was December 31, 2022. The Period 5 PRF Reports include payments received for the period January 1, 2022 to June 30, 2022. The deadline to use these funds was June 30, 2023. The Schedule includes the following entities that received the PRF program: Legal Entity Name Tax Identification Number PRF Amount Baptist Homes Society 25-0339430 $ 1,047,095 4. Indirect Cost Rate The Corporation has not elected to use the 10% de-minimis indirect cost rate allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Corporation has not elected to use the 10% de-minimis indirect cost rate allowed under Uniform Guidance. The Corporation has not elected to use the 10% de-minimis indirect cost rate allowed under Uniform Guidance.

Finding Details

Finding 2023-001 - Significant Deficiency in Internal Control Federal Program: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number: 93.498 Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: N/A Award Number: N/A Award Year: 2022 Compliance Requirement: Activities Allowed/Unallowed, Allowable Costs/Cost principles, and Reporting Questioned Costs: Not Determinable Criteria: Non-federal entities in receipt of federal funds must comply with the requirements of 2 CFR 200.303(a), which require an entity to establish and maintain effective internal control over the Federal award to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Recipients of Provider Relief Funds and American Resue Plan (ARP) Rural Distribution (PRF) payments must also comply with the reporting requirements described in the PRF terms and conditions and specified in directions issued by the U.S. Department of Health and Human Services. Segregation of duties is an integral component of internal controls intended to prevent or decrease the occurrence of noncompliance due to error or fraud. Proper segregation of duties should be evident in order to ensure that no single employee has control over all phases of a transaction. Condition and Context: The Corporation lacks proper segregation of duties with respect to the calculation of lost revenue. Proper segregation of duties is necessary to prevent a situation where one individual handles a transaction from beginning to end in order to reduce the potential for noncompliance due to error or fraud. During the audit of the lost revenue calculation, six months out of fifty-six were input incorrectly into the calculation from the source documents in error. Using the correct revenue amounts for those six months results in a higher total of lost revenue for the period. Effect: As a result of the lack of proper segregation of duties, noncompliance due to error or fraud could occur without being detected and corrected, timely. Cause: The lack of segregation of duties is due to the CFO taking sole responsibility for calculating both lost revenue and incremental agency costs without a separate review process. Recommendation: Management should implement a review process for these calculations. View of Responsible Officials: The Corporation will have more than one person review the reporting for covid funds. After the information is gathered and reported by the Chief Financial Officer (CFO) but before the information is submitted, the Controller will be asked to review the data. After review and documentation that there has been a review, the reporting will be submitted.
Finding 2023-001 - Significant Deficiency in Internal Control Federal Program: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number: 93.498 Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: N/A Award Number: N/A Award Year: 2022 Compliance Requirement: Activities Allowed/Unallowed, Allowable Costs/Cost principles, and Reporting Questioned Costs: Not Determinable Criteria: Non-federal entities in receipt of federal funds must comply with the requirements of 2 CFR 200.303(a), which require an entity to establish and maintain effective internal control over the Federal award to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Recipients of Provider Relief Funds and American Resue Plan (ARP) Rural Distribution (PRF) payments must also comply with the reporting requirements described in the PRF terms and conditions and specified in directions issued by the U.S. Department of Health and Human Services. Segregation of duties is an integral component of internal controls intended to prevent or decrease the occurrence of noncompliance due to error or fraud. Proper segregation of duties should be evident in order to ensure that no single employee has control over all phases of a transaction. Condition and Context: The Corporation lacks proper segregation of duties with respect to the calculation of lost revenue. Proper segregation of duties is necessary to prevent a situation where one individual handles a transaction from beginning to end in order to reduce the potential for noncompliance due to error or fraud. During the audit of the lost revenue calculation, six months out of fifty-six were input incorrectly into the calculation from the source documents in error. Using the correct revenue amounts for those six months results in a higher total of lost revenue for the period. Effect: As a result of the lack of proper segregation of duties, noncompliance due to error or fraud could occur without being detected and corrected, timely. Cause: The lack of segregation of duties is due to the CFO taking sole responsibility for calculating both lost revenue and incremental agency costs without a separate review process. Recommendation: Management should implement a review process for these calculations. View of Responsible Officials: The Corporation will have more than one person review the reporting for covid funds. After the information is gathered and reported by the Chief Financial Officer (CFO) but before the information is submitted, the Controller will be asked to review the data. After review and documentation that there has been a review, the reporting will be submitted.