FAC Explorer

Audit 305610

FY End
2022-12-31
Total Expended
$35.62M
Findings
2
Programs
2
Organization: Centre Care, Inc. (PA)
Year: 2022 Accepted: 2024-05-06
Auditor: Cbiz

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
395989 2022-002 - - L
972431 2022-002 - - L

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Direct Loan & Grant Program $35.59M Yes 1
93.498 Provider Relief Fund $36,617 - 0

Contacts

Name Title Type
N73WB37FNNB9 Todd Wagner Auditee
2153285786 Donald Faul Auditor
No contacts on file

Notes to SEFA

Title: Basis of presentation Accounting Policies: Expenditures reported on the accompanying Schedule are presented using the accrual basis ofaccounting. Such expenditures are recognized following the cost principles contained in theUniform Grant Guidance, wherein certain types of expenditures are not allowable or are limited toreimbursement. The amount presented in the Schedule may differ from amounts presented in, orused in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowedunder the Uniform Guidance The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes thefederal award activity of Centre Care, Inc. d/b/a Centre Care Rehabilitation and WellnessServices (the “Organization”) under programs of the Federal Government for the year endedDecember 31, 2022. The information in this Schedule is presented in accordance withrequirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (“UniformGuidance”). Because the Schedule presents only a selected portion of the operations of theOrganization, it is not intended to, and does not, represent the statements of financial position,operations, changes in net assets, or cash flows of the Organization. All financial awards receiveddirectly from financial agencies as well as federal financial awards passed through othergovernmental agencies are included on the Schedule.
Title: Federal Loan Guarantee Program Accounting Policies: Expenditures reported on the accompanying Schedule are presented using the accrual basis ofaccounting. Such expenditures are recognized following the cost principles contained in theUniform Grant Guidance, wherein certain types of expenditures are not allowable or are limited toreimbursement. The amount presented in the Schedule may differ from amounts presented in, orused in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowedunder the Uniform Guidance The federal loan guarantee program listed subsequently is administered directly by theOrganization and balances and transactions relating to this program are included in the basicfinancial statements of the Organization. The balance of the loan outstanding as of December 31,2022, consists of:
Title: Provider Relief Funds Accounting Policies: Expenditures reported on the accompanying Schedule are presented using the accrual basis ofaccounting. Such expenditures are recognized following the cost principles contained in theUniform Grant Guidance, wherein certain types of expenditures are not allowable or are limited toreimbursement. The amount presented in the Schedule may differ from amounts presented in, orused in the preparation of, the basic financial statements. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowedunder the Uniform Guidance Expenditures under Assistance Listing Number 93.498, Provider Relief Fund (“PRF”) applies theguidance of the U.S. Department of Health and Human Services (“HHS”). For the PRF awardprogram, the amount reported in the accompanying Schedule is reported based on the PRFportal submission guidelines. Payments from HHS for the PRF award program are assigned toone of seven payment periods based upon the date each payment from the PRF award programwas received. Each period has a specified period of availability and timing of reportingrequirements. The accompanying Schedule includes those qualifying expenditures and/or lostrevenues that were reported in the PRF award program portal for periods 3 and 4 (paymentreceived period from January 1, 2021 to June 30, 2021 and July 1, 2021 to December 31, 2021,respectively; and periods of availability from January 1, 2020 to June 30, 2022 and January 1,2020 to December 31, 2022, respectively). As such, the amount reported in the accompanyingSchedule will differ from amounts reported in the accompanying statements of operations.

Finding Details

Finding 2022-002
Criteria or Specific Requirement - 45 CFR § 75.512, Report Submission, requires completion of an audit and submission of the data collection form and reporting package within the earlier of thirty calendar days after receipt of the auditors’ report, or nine months after the end of the audit period. Condition - The audit and data collection form are being submitted after the required due date. Cause - The delay in filing required submissions timely was driven by slow communications from grantor in relation to the Organization missing certain debt covenants and providing corrective actions. Effect - Noncompliance with the requirements of 45 CFR § 75.512. There is a potential for suspension or cessation of federal funding under the federal award. Questioned Cost - To be determined by the grantor. Context - We reviewed the audit submission date in comparison to the required due date. Repeat Finding - No Recommendation - The Organization should seek to identify potential issues earlier and begin discussions with the grantor as soon as possible to work together in finding a resolution. View of Responsible Officials and Planned Corrective Actions - On June 28, 2023, prior to the expiration of the 180 day deadline after year-end for the issuance of the audit report, and prior to the nine month period for the issuance of the Single Audit report, representatives of CHR Consulting Services, Inc. held a conference call with representatives of the USDA informing them that the issuance of the audit report would be delayed due to open items for the audit addressing non-compliance with certain covenants, including the Debt Service Coverage Ratio. Centre Care requested waivers from the USDA on the covenant violations to avoid the classification of the USDA mortgage as current, resulting in the inclusion in the audit report of an Emphasis of matter paragraph for a Going Concern. Centre Care wished to avoid such an audit opinion as it has ongoing grant requests which would be adversely impacted by such an audit opinion. It was eventually determined that the no waivers would be issued by the USDA to avoid the aforementioned audit opinion and the Board of Directors and Finance Committee determined to proceed with the issuance of the audit with the Emphasis of Matter as a Going Concern. Centre Care is working with the external auditors for the completion and submission of the audit for the year ended December 31, 2022. Future audits will be issued and submitted within the appropriate deadlines.
Finding 2022-002
Criteria or Specific Requirement - 45 CFR § 75.512, Report Submission, requires completion of an audit and submission of the data collection form and reporting package within the earlier of thirty calendar days after receipt of the auditors’ report, or nine months after the end of the audit period. Condition - The audit and data collection form are being submitted after the required due date. Cause - The delay in filing required submissions timely was driven by slow communications from grantor in relation to the Organization missing certain debt covenants and providing corrective actions. Effect - Noncompliance with the requirements of 45 CFR § 75.512. There is a potential for suspension or cessation of federal funding under the federal award. Questioned Cost - To be determined by the grantor. Context - We reviewed the audit submission date in comparison to the required due date. Repeat Finding - No Recommendation - The Organization should seek to identify potential issues earlier and begin discussions with the grantor as soon as possible to work together in finding a resolution. View of Responsible Officials and Planned Corrective Actions - On June 28, 2023, prior to the expiration of the 180 day deadline after year-end for the issuance of the audit report, and prior to the nine month period for the issuance of the Single Audit report, representatives of CHR Consulting Services, Inc. held a conference call with representatives of the USDA informing them that the issuance of the audit report would be delayed due to open items for the audit addressing non-compliance with certain covenants, including the Debt Service Coverage Ratio. Centre Care requested waivers from the USDA on the covenant violations to avoid the classification of the USDA mortgage as current, resulting in the inclusion in the audit report of an Emphasis of matter paragraph for a Going Concern. Centre Care wished to avoid such an audit opinion as it has ongoing grant requests which would be adversely impacted by such an audit opinion. It was eventually determined that the no waivers would be issued by the USDA to avoid the aforementioned audit opinion and the Board of Directors and Finance Committee determined to proceed with the issuance of the audit with the Emphasis of Matter as a Going Concern. Centre Care is working with the external auditors for the completion and submission of the audit for the year ended December 31, 2022. Future audits will be issued and submitted within the appropriate deadlines.