Audit 317022

FY End
2022-12-31
Total Expended
$11.79M
Findings
4
Programs
5
Organization: Healthalliance, Inc. (NY)
Year: 2022 Accepted: 2024-08-12

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
480922 2022-001 Significant Deficiency - L
480923 2022-002 Significant Deficiency - L
1057364 2022-001 Significant Deficiency - L
1057365 2022-002 Significant Deficiency - L

Contacts

Name Title Type
LXDGLUD1MEQ7 Erin Nagy Auditee
8459436084 Michael Sorelle Auditor
No contacts on file

Notes to SEFA

Title: Reporting Entity Accounting Policies: The accompanying schedule of expenditures of federal awards (“SEFA”) is presented on the accrual basis of accounting. The Corporation receives payments from the federal and state government on behalf of Medicaid and Medicare eligible patients for whom it has provided medical services at its medical facilities. Since these payments represent insurance coverage provided directly to individuals under the Medicaid and Medicare entitlement programs, they are not included as federal financial assistance. De Minimis Rate Used: N Rate Explanation: The Corporation utilizes a direct cost rate and has not elected to use the 10% de minimis cost rate allowed by Uniform Guidance. For purposes of complying with Title 2 U.S. Code of Federal Regulation Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”), the Corporation reporting entity is defined in Note 1 to its December 31, 2022 and 2021 basic financial statements; except that Margaretville Nursing Home, Inc. d/b/a Mountainside Residential Care Center, a blended component unit, is excluded. Accordingly, the accompanying SEFA presents the federal award programs administered by the Corporation as defined above, for the year ended December 31, 2022.
Title: Matching Costs Accounting Policies: The accompanying schedule of expenditures of federal awards (“SEFA”) is presented on the accrual basis of accounting. The Corporation receives payments from the federal and state government on behalf of Medicaid and Medicare eligible patients for whom it has provided medical services at its medical facilities. Since these payments represent insurance coverage provided directly to individuals under the Medicaid and Medicare entitlement programs, they are not included as federal financial assistance. De Minimis Rate Used: N Rate Explanation: The Corporation utilizes a direct cost rate and has not elected to use the 10% de minimis cost rate allowed by Uniform Guidance. Matching costs (i.e., the nonfederal share of certain program costs) are not included in the accompanying SEFA.
Title: Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal awards (“SEFA”) is presented on the accrual basis of accounting. The Corporation receives payments from the federal and state government on behalf of Medicaid and Medicare eligible patients for whom it has provided medical services at its medical facilities. Since these payments represent insurance coverage provided directly to individuals under the Medicaid and Medicare entitlement programs, they are not included as federal financial assistance. De Minimis Rate Used: N Rate Explanation: The Corporation utilizes a direct cost rate and has not elected to use the 10% de minimis cost rate allowed by Uniform Guidance. No amounts were provided to subrecipients
Title: Relationship to Federal Financial Reports Accounting Policies: The accompanying schedule of expenditures of federal awards (“SEFA”) is presented on the accrual basis of accounting. The Corporation receives payments from the federal and state government on behalf of Medicaid and Medicare eligible patients for whom it has provided medical services at its medical facilities. Since these payments represent insurance coverage provided directly to individuals under the Medicaid and Medicare entitlement programs, they are not included as federal financial assistance. De Minimis Rate Used: N Rate Explanation: The Corporation utilizes a direct cost rate and has not elected to use the 10% de minimis cost rate allowed by Uniform Guidance. The regulations and guidelines governing the preparation of federal financial reports vary by federal agency and among programs administered by the same agency. Accordingly, the amounts reported in federal financial reports do not necessarily agree with the amounts reported in the accompanying SEFA which is prepared on the accrual basis of accounting.

Finding Details

Criteria: Pursuant to 2 CFR 200.512(a) of the Uniform Guidance, the auditee is responsible for submitting its data collection form and reporting package, including the auditors’ reports within the earlier of 30 days after receipt of the auditors’ reports or nine months after the end of the audit period to the Federal Audit Clearinghouse. Condition, Context, Cause and Effect: The Uniform Guidance audit of the Corporation’s federal awards for the year ended December 31, 2022 was not completed within nine months following the period-end and as a result, the Corporation did not submit its Uniform Guidance audit reporting package within the required timeframe. As such, the Corporation did not comply with the aforementioned regulatory requirements. The delay in the issuance of the Uniform Guidance audit report for the year ended December 31, 2022 was due to staff turnover in the Corporation’s finance department. Recommendation: We recommend that the Corporation enhance its closing and reporting process to ensure the Uniform Guidance audit procedures will be completed by the aforementioned deadline. Views of Responsible Officials and Planned Corrective Action: Management refers the reader to the separately provided Corrective Action Plan for its remediation.
Criteria: Pursuant to terms and conditions set forth by the U.S. Department of Health and Human Services, recipients of funding from the Provider Relief Fund (“PRF”) are required to submit reporting to the Provider Relief Fund Reporting Portal (“PRF Portal”) for each reporting period in which funds were received. Condition, Context, Cause and Effect: In preparing for the Corporation’s Uniform Guidance audit for the year ended December 31, 2022, management determined that the COVID-19 expenditures as reported on the Corporation’s PRF reporting submitted to the PRF Portal for PRF reporting periods 3 and 4 did not reconcile to the Corporation’s accounting records. The PRF reporting submitted by the Corporation for periods 3 and 4 indicated COVID-19 expenditures that were approximately $3.9 million less in aggregate than the actual COVID-19 expenditures per the Corporation’s accounting records. The discrepancy in expenditures reported to the PRF Portal was due to staff turnover in the Corporation’s finance department. Recommendation: We recommend that the Corporation enhance its reconciliation and reporting process to ensure that financial reporting is prepared accurately. Views of Responsible Officials and Planned Corrective Action: Management refers the reader to the separately provided Corrective Action Plan for its remediation.
Criteria: Pursuant to 2 CFR 200.512(a) of the Uniform Guidance, the auditee is responsible for submitting its data collection form and reporting package, including the auditors’ reports within the earlier of 30 days after receipt of the auditors’ reports or nine months after the end of the audit period to the Federal Audit Clearinghouse. Condition, Context, Cause and Effect: The Uniform Guidance audit of the Corporation’s federal awards for the year ended December 31, 2022 was not completed within nine months following the period-end and as a result, the Corporation did not submit its Uniform Guidance audit reporting package within the required timeframe. As such, the Corporation did not comply with the aforementioned regulatory requirements. The delay in the issuance of the Uniform Guidance audit report for the year ended December 31, 2022 was due to staff turnover in the Corporation’s finance department. Recommendation: We recommend that the Corporation enhance its closing and reporting process to ensure the Uniform Guidance audit procedures will be completed by the aforementioned deadline. Views of Responsible Officials and Planned Corrective Action: Management refers the reader to the separately provided Corrective Action Plan for its remediation.
Criteria: Pursuant to terms and conditions set forth by the U.S. Department of Health and Human Services, recipients of funding from the Provider Relief Fund (“PRF”) are required to submit reporting to the Provider Relief Fund Reporting Portal (“PRF Portal”) for each reporting period in which funds were received. Condition, Context, Cause and Effect: In preparing for the Corporation’s Uniform Guidance audit for the year ended December 31, 2022, management determined that the COVID-19 expenditures as reported on the Corporation’s PRF reporting submitted to the PRF Portal for PRF reporting periods 3 and 4 did not reconcile to the Corporation’s accounting records. The PRF reporting submitted by the Corporation for periods 3 and 4 indicated COVID-19 expenditures that were approximately $3.9 million less in aggregate than the actual COVID-19 expenditures per the Corporation’s accounting records. The discrepancy in expenditures reported to the PRF Portal was due to staff turnover in the Corporation’s finance department. Recommendation: We recommend that the Corporation enhance its reconciliation and reporting process to ensure that financial reporting is prepared accurately. Views of Responsible Officials and Planned Corrective Action: Management refers the reader to the separately provided Corrective Action Plan for its remediation.