Audit 308769

FY End
2023-12-31
Total Expended
$3.51M
Findings
2
Programs
3
Year: 2023 Accepted: 2024-06-13
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
400689 2023-003 Material Weakness Yes N
977131 2023-003 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $2.72M Yes 1
93.498 Covid-19 Provider Relief Fund $737,893 - 0
93.697 Covid-19 Testing for Rural Health Clinics $49,529 - 0

Contacts

Name Title Type
EA2QQFLS7MB3 Marcus Lewis Auditee
7012844538 Ashley Brandt-Duda Auditor
No contacts on file

Notes to SEFA

Title: Loan Program Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of P.R. Health Corporation d/b/a First Care Health Center (Health Center) under programs of the federal government for the year ended December 31, 2023. The information 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 Health Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Health Center. Expenditures reported on the Schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Health Center does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. Expenditures reported in this Schedule consist of the beginning of the year outstanding loan balance plus advances made on the loan during the year, if applicable. The outstanding balance at December 31, 2023 was $2,589,737.
Title: COVID-19 Provider Relief Funds and American Rescue Plan (ARP) Rural Distribution Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of P.R. Health Corporation d/b/a First Care Health Center (Health Center) under programs of the federal government for the year ended December 31, 2023. The information 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 Health Center, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Health Center. Expenditures reported on the Schedule are reported on the accrual basis of accounting. When applicable, 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. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Health Center does not draw for indirect administrative expenses and has not elected to use the 10% de minimis cost rate. The Health Center received amounts from the U.S. Department of Health and Human Services (HHS) through the COVID‐19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution program (PRF) (Federal Financial Assistance Listing #93.498). The Health Center incurred eligible expenditures, and therefore, recognized revenues totaling $737,893 for the year ended December 31, 2023 on the financial statements. In accordance with the compliance supplement, the PRF expenditures recognized on the Schedule are based on the reporting to HHS for Period 5, defined as payments received during January 1, 2022 to June 30, 2022.The Health Center earned interest of $1,330 which is included in the Schedule.

Finding Details

2023‐003 Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Special Tests and Provisions Material Weakness in Internal Control Over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over federal award that provides assurance that the entity is managing the federal awards in compliance with federal statutes, regulations, and conditions of the federal awards. Condition: During our testing, there was no formal review separate from the preparer over the reserve fund reconciliation for the federal program. Cause: The Health Center did not have an adequate internal control policy in place to ensure review and approval over the reserve fund. Effect: The lack of adequate policies governing review increases the risk that employees participating in the federal award administration may not be able to detect and correct noncompliance in a timely manner. Questioned Costs: None reported. Context/Sampling: Sampling was not used. The Health Center has two required reserve accounts that were tested. Repeat Finding from Prior Years: Yes, prior year finding 2022‐004 Recommendation: We recommend that the Health Center enhance internal control policies to ensure that formal documentation of reviews is present. Views of Responsible Officials: Management agrees with the finding.
2023‐003 Department of Agriculture Federal Financial Assistance Listing #10.766 Community Facilities Loans and Grants Cluster Special Tests and Provisions Material Weakness in Internal Control Over Compliance Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over federal award that provides assurance that the entity is managing the federal awards in compliance with federal statutes, regulations, and conditions of the federal awards. Condition: During our testing, there was no formal review separate from the preparer over the reserve fund reconciliation for the federal program. Cause: The Health Center did not have an adequate internal control policy in place to ensure review and approval over the reserve fund. Effect: The lack of adequate policies governing review increases the risk that employees participating in the federal award administration may not be able to detect and correct noncompliance in a timely manner. Questioned Costs: None reported. Context/Sampling: Sampling was not used. The Health Center has two required reserve accounts that were tested. Repeat Finding from Prior Years: Yes, prior year finding 2022‐004 Recommendation: We recommend that the Health Center enhance internal control policies to ensure that formal documentation of reviews is present. Views of Responsible Officials: Management agrees with the finding.