FAC Explorer

Audit 310112

FY End
2021-12-31
Total Expended
$1.25M
Findings
2
Programs
1
Organization: Aldersgate United Methodist Retirement Community, Inc. (NC)
Year: 2021 Accepted: 2024-06-26
Auditor: Cla

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
402882 2021-001 Significant Deficiency - B
979324 2021-001 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $1.25M Yes 1

Contacts

Name Title Type
EM1TXEBLQ2S9 Cherie Grisso Auditee
7045325222 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 Aldersgate United Methodist Retirement Community, 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 Aldersgate United Methodist Retirement Community, Inc., it is not intended to and does not present the net assets, changes in net assets, or cash flows of Aldersgate United Methodist Retirement Community, Inc. The consolidated financial statements reflect revenue recognized from the Provider Relief Fund of $74,392 and $1,250,259 for the years ended December 31, 2021 and 2020, respectively. The Schedule includes Provider Relief Funds of $1,250,259 that were received in Period 1 and Period 2 in accordance with the requirements of the compliance supplement for assistance listing number 93.498. The consolidated financial statements reflect revenue recognized from the Provider Relief Fund of approximately $74,000 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. During the years ended December 31, 2021 and 2020, Aldersgate United Methodist Retirement Community, Inc. did not make subrecipient payments with the federal funds listed in the schedule of expenditures of federal awards.
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 Aldersgate United Methodist Retirement Community, 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: COVID-19 Provider Relief Funds 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: During our testing, we noted the organization had insufficient support for six disbursements and one disbursement was recorded at the incorrect dollar value. We also noted thirteen selections with no support of approval for the expenditures incurred. Questioned costs: $9,969 Context: During our testing, it was noted that 6 of the 60 disbursements sampled could not be supported with invoices or detailed receipts, 1 of the 60 disbursements sampled was incorrect, and 13 of the 60 disbursements sampled had no support of having been approved. Cause: The organization did not have proper controls in place to ensure proper documentation was maintained and that the expenditures were properly reviewed and approved. Effect: Information included in the submission could be incorrect without a formal process in place. Recommendation: We recommend the organization adopt a formal policy that ensures documentation of expenditures is maintained and that all expenditures are compared against source documentation to ensure appropriate recording. A review process should be formally documented. The review should be performed by someone other than the preparer of the information. Views of responsible officials: There is no disagreement with the audit finding. However, management believes the questioned costs would be covered by the excess amount expenses incurred.
Finding 2021-001
Federal Agency: U.S. Department of Health and Human Services Federal Program Title: COVID-19 Provider Relief Funds 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: During our testing, we noted the organization had insufficient support for six disbursements and one disbursement was recorded at the incorrect dollar value. We also noted thirteen selections with no support of approval for the expenditures incurred. Questioned costs: $9,969 Context: During our testing, it was noted that 6 of the 60 disbursements sampled could not be supported with invoices or detailed receipts, 1 of the 60 disbursements sampled was incorrect, and 13 of the 60 disbursements sampled had no support of having been approved. Cause: The organization did not have proper controls in place to ensure proper documentation was maintained and that the expenditures were properly reviewed and approved. Effect: Information included in the submission could be incorrect without a formal process in place. Recommendation: We recommend the organization adopt a formal policy that ensures documentation of expenditures is maintained and that all expenditures are compared against source documentation to ensure appropriate recording. A review process should be formally documented. The review should be performed by someone other than the preparer of the information. Views of responsible officials: There is no disagreement with the audit finding. However, management believes the questioned costs would be covered by the excess amount expenses incurred.