Audit 310342

FY End
2023-09-30
Total Expended
$14.85M
Findings
2
Programs
9
Organization: Valley Health Systems, Inc. (MA)
Year: 2023 Accepted: 2024-06-27

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
403177 2023-101 - - A
979619 2023-101 - - A

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $10.61M Yes 0
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $1.94M - 0
93.958 Block Grants for Community Mental Health Services $665,509 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $448,340 - 0
93.917 Hiv Care Formula Grants $421,780 Yes 1
14.267 Continuum of Care Program $277,757 Yes 0
14.241 Housing Opportunities for Persons with Aids $246,038 - 0
93.788 Opioid Str $215,942 - 0
32.006 Covid-19 Telehealth Program $33,090 - 0

Contacts

Name Title Type
VHBDJH88HSF4 Erin Spaulding Auditee
4135401164 Jeremy Veilleux Auditor
No contacts on file

Notes to SEFA

Title: Pass-Through Awards Accounting Policies: Expenditures for direct costs are recognized as incurred using the accrual method of accounting and the cost accounting principles contained in Uniform Guidance, as applicable. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. The categorization of expenditures by program included in the Schedule is based upon the Assistance Listing Number (ALN). No grant monies expended and reported within the Schedule were passed-through to subrecipients. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization receives certain federal awards in the form of pass-through awards. Such amounts received as pass-through awards are specifically identified on the Schedule.
Title: Donated Personal Protective Equipment (PPE) (Unaudited) Accounting Policies: Expenditures for direct costs are recognized as incurred using the accrual method of accounting and the cost accounting principles contained in Uniform Guidance, as applicable. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. The categorization of expenditures by program included in the Schedule is based upon the Assistance Listing Number (ALN). No grant monies expended and reported within the Schedule were passed-through to subrecipients. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. During the year ended September 30, 2023, the Organization did not receive donated PPE.
Title: United States Department of Health and Human Services Coronavirus Aid Relief and Economic Activity (CARES) Act Provider Relief Fund Accounting Policies: Expenditures for direct costs are recognized as incurred using the accrual method of accounting and the cost accounting principles contained in Uniform Guidance, as applicable. Under these cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. The categorization of expenditures by program included in the Schedule is based upon the Assistance Listing Number (ALN). No grant monies expended and reported within the Schedule were passed-through to subrecipients. De Minimis Rate Used: Y Rate Explanation: The Organization has elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Schedule includes grant activity related to the United States Department of Health and Human Services (DHHS) CARES Act Assistance Listing Number 93.498, Provider Relief Fund (PRF). As required by the 2023 OMB Compliance Supplement, the Schedule includes all PRF funds received between July 1, 2021 to December 31, 2021 (Reporting Period 4), and expended by December 31, 2022 as well as PRF funds received between January 1, 2022 and June 30, 2022 (Reporting Period 5) and expended by June 30, 2023. During the audit process, it was determined that the Organization had received PRFs between July 1, 2020 and December 31, 2020, and expended by December 31, 2021 (Reporting Period 2) that were excluded from the Schedule for the year ended September 30, 2022. The PRFs received in Reporting Period 2 relate to the major program audited in 2023, and have been included in the Schedule for the year ended September 30, 2023. The PRF funds were used to cover direct expenditures and lost revenues. Holyoke Medical Center, Inc. (TIN 22-2520073) was the recipient of $8,700,000 and Valley Health Systems, Inc. (TIN 04-2103583) was the recipient of $156,681 of PRF funding during Reporting Period 2. Valley Health Systems, Inc. was the recipient of $1,751,441 of PRF funding during Reporting Period 4. There were no PRF funds received during Reporting Period 5.

Finding Details

Unallowable Costs ‑ Federal Agency: U.S. Department of Health and Human Services; Award Name: HIV Care Formula Grant (Ryan White HIV/AIDS Program Part B); Program Year: July 1, 2022 to June 30, 2024; ALN No.:93.917: Criteria: The Organization must submit only allowable costs for reimbursement under the accounting principles contained in Uniform Guidance. Condition: During compliance testing, it was noted that one out of twenty five selections improperly included alcohol in the balances submitted for expense reimbursements. Context: One expense reimbursement was found to have reimbursed alcohol. Cause: There was a lack of consistent review of the receipt before submission for expense reimbursement. Effect: As a result of the condition, one reimbursement was overpaid. Recommendation: In the future, the Organization should review reimbursements closely to ensure unallowable costs are not submitted for reimbursement. Views of Responsible Officials: Management acknowledges the finding and will take action to ensure that no unallowable costs are being reimbursed.
Unallowable Costs ‑ Federal Agency: U.S. Department of Health and Human Services; Award Name: HIV Care Formula Grant (Ryan White HIV/AIDS Program Part B); Program Year: July 1, 2022 to June 30, 2024; ALN No.:93.917: Criteria: The Organization must submit only allowable costs for reimbursement under the accounting principles contained in Uniform Guidance. Condition: During compliance testing, it was noted that one out of twenty five selections improperly included alcohol in the balances submitted for expense reimbursements. Context: One expense reimbursement was found to have reimbursed alcohol. Cause: There was a lack of consistent review of the receipt before submission for expense reimbursement. Effect: As a result of the condition, one reimbursement was overpaid. Recommendation: In the future, the Organization should review reimbursements closely to ensure unallowable costs are not submitted for reimbursement. Views of Responsible Officials: Management acknowledges the finding and will take action to ensure that no unallowable costs are being reimbursed.