FAC Explorer

Audit 309260

FY End
2021-12-31
Total Expended
$1.86M
Findings
2
Programs
1
Organization: Presbyterian Homes of Tennessee, Inc. (TN)
Year: 2021 Accepted: 2024-06-19
Auditor: Cla

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
401250 2021-001 Significant Deficiency - L
977692 2021-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $1.86M Yes 1

Contacts

Name Title Type
P6RHKYVP53L6 Erik Hockman Auditee
8652433613 Jeremy Hicks Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Accrual basis of accounting, Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance) De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate as allowed under the Uniform Guidance The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Presbyterian Homes of Tennessee, Inc. under programs of the federal government for the year ended December 31, 2021. The information in this Schedule is presented in accordance with the requirements of 2 CFR 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 Presbyterian Homes of Tennessee, Inc., it is not intended to and does not present the financial position, changes in net assets, or cash flows of Presbyterian Homes of Tennessee, Inc.. The financial statements reflect revenue recognized from the Provider Relief Fund of $94,364 and $1,818,680 for the years ended December 31, 2021 and 2020, respectively, as well as $763 of investment income earned in 2020 on the Provider Relief Fund proceeds. The SEFA includes Provider Relief Funds of $1,426,726 and $435,617 that were received in Periods 1 and 2, respectively, in accordance with the requirements of the compliance supplement for assistance listing number 93.498. The financial statements reflect revenue from the Provider Relief Fund of approximately $51,000 related to Period 3.
Title: Summary of Significant Accounting Policies Accounting Policies: Accrual basis of accounting, Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance) De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate as allowed under the Uniform Guidance 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. Under these principles, certain types of expenditures are not allowable or are limited as to reimbursement. Any negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Title: Indirect Cost Rate Accounting Policies: Accrual basis of accounting, Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance) De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate as allowed under the Uniform Guidance Presbyterian Homes of Tennessee, Inc. has elected to not use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2021-001
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Provider Relief Funding Assistance Listing Number: 93.498 Award Period: January 1, 2021 through December 31, 2021 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipients only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: Period 1 submission related to provider relief funds received required Presbyterian Homes of Tennessee, Inc. to complete a quarterly table of applicable expenses and then to select one of the three lost revenue options to cover any remaining PRF after expenses were applied. Questioned costs: None Context: We noted that the initial submission for Period 1 related to the Provider Relief Funds was incorrect as filed. Expenses and lost revenues were incorrectly reflected on the submission. Management of Presbyterian Homes of Tennessee, Inc., after communicating with the Health Resources and Services Administration (HRSA), resubmitted a corrected submission for Period 1, accurately reflecting information for Period 1. Cause: The initial submission report was not completed accurately or properly reviewed. Effect: The initial submission for Period 1 incorrectly showed eligible expenses and was incomplete as to lost revenues. Management was able to provide a resubmission of Period 1 to accurately reflect lost revenues and applicable expenses using Option 1. Recommendation: With the corrected submission provided by management for Period 1, Presbyterian Homes of Tennessee, Inc. provided supportable information related to the period, specifically around lost revenues, which were in excess of the provider relief payments received for Period 1. We recommend management have policies and procedures in place to ensure for any future submissions, information included is supported with the appropriate documentation and that the submissions are reviewed. Views of responsible officials: There is no disagreement with the audit finding. As with the amended Period 1 reporting and future filings, procedures are in place to ensure accurate reporting.
Finding 2021-001
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Provider Relief Funding Assistance Listing Number: 93.498 Award Period: January 1, 2021 through December 31, 2021 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipients only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: Period 1 submission related to provider relief funds received required Presbyterian Homes of Tennessee, Inc. to complete a quarterly table of applicable expenses and then to select one of the three lost revenue options to cover any remaining PRF after expenses were applied. Questioned costs: None Context: We noted that the initial submission for Period 1 related to the Provider Relief Funds was incorrect as filed. Expenses and lost revenues were incorrectly reflected on the submission. Management of Presbyterian Homes of Tennessee, Inc., after communicating with the Health Resources and Services Administration (HRSA), resubmitted a corrected submission for Period 1, accurately reflecting information for Period 1. Cause: The initial submission report was not completed accurately or properly reviewed. Effect: The initial submission for Period 1 incorrectly showed eligible expenses and was incomplete as to lost revenues. Management was able to provide a resubmission of Period 1 to accurately reflect lost revenues and applicable expenses using Option 1. Recommendation: With the corrected submission provided by management for Period 1, Presbyterian Homes of Tennessee, Inc. provided supportable information related to the period, specifically around lost revenues, which were in excess of the provider relief payments received for Period 1. We recommend management have policies and procedures in place to ensure for any future submissions, information included is supported with the appropriate documentation and that the submissions are reviewed. Views of responsible officials: There is no disagreement with the audit finding. As with the amended Period 1 reporting and future filings, procedures are in place to ensure accurate reporting.