Audit 318721

FY End
2021-09-30
Total Expended
$946,465
Findings
2
Programs
1
Year: 2021 Accepted: 2024-09-06
Auditor: Rsm US LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
486079 2021-001 - - L
1062521 2021-001 - - L

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $946,465 Yes 1

Contacts

Name Title Type
K38LLLTVEC17 Michelle Horst Auditee
6414241740 Melissa Sisler Auditor
No contacts on file

Notes to SEFA

Title: Note 1. General Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Health Center under programs of the federal government for the year ended September 30, 2021. The information in this schedule 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). 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 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. De Minimis Rate Used: N Rate Explanation: The Health Center has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance. In addition, the Health Center did not receive noncash assistance relating to any federal programs. Good Shepherd Health Center, Inc. and Subsidiary (collectively, the Health Center) is a nonprofit skilled nursing facility providing housing and care to the elderly in Mason City, Iowa. The Health Center also owns and operates an independent living and assisted living facility in Mason City, Iowa. The subsidiary developed and owns an independent living community consisting of 32 independent living units. Federal funds were received in awards from the U.S. Department of Health and Human Services (HHS) through federal programs established by legislation in response to COVID-19 pandemic, including the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the American Rescue Plan (ARP).
Title: note 2. Basis of Presentation and Summary of Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Health Center under programs of the federal government for the year ended September 30, 2021. The information in this schedule 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). 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 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. De Minimis Rate Used: N Rate Explanation: The Health Center has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance. In addition, the Health Center did not receive noncash assistance relating to any federal programs. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Health Center under programs of the federal government for the year ended September 30, 2021. The information in this schedule 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). 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 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.
Title: Note 3. Provider Relief Fund Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Health Center under programs of the federal government for the year ended September 30, 2021. The information in this schedule 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). 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 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. De Minimis Rate Used: N Rate Explanation: The Health Center has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance. In addition, the Health Center did not receive noncash assistance relating to any federal programs. For the federal awards related to the Provider Relief Fund and American Rescue Plan Rural Distribution (PRF) program, HHS has indicated the amounts on the Schedule be reported corresponding to reporting requirements of the Health Resources and Services Administration (HRSA) PRF Reporting Portal. Payments from HHS for PRF are assigned to ‘Payment Received Periods’ (each, a Period) based upon the date each payment was received. Each Period has a specified Period of Availability and timing of reporting requirements. The Health Center is required to submit reports into the HRSA PRF Reporting Portal after each Period’s deadline to use the funds (i.e., after the end of the Period of Availability). The Schedule includes $946,465 of Period 1 distributions received from HHS between April 10, 2020, through June 30, 2020, and reported by the Health Center in the HRSA PRF Reporting Portal as used during the corresponding Periods of Availability in accordance with HHS guidance. Due to the PRF reporting requirements, this amount is not the total PRF received and recognized as revenue in the Health Center’s consolidated financial statements. PRF distributions from period 1 recognized as CARES Act Provider Relief Funds revenue and support in the Health Center’s consolidated statements of activities for the years ended September 30, 2021 and 2020, totaled as follows: Period 1 Distributions: 2021 $85,163 2022 $861,302 Total $946,465 The schedule includes the PRF distributions received in Period 1 by the legal entity named Good Shepherd Geriatric Center Inc. (dba Good Shepherd Health Center, Inc.) with a Tax Identification Number of 42-0725236 totaling $946,465.
Title: Note 4. Indirect Costs and Noncash Assistance Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Health Center under programs of the federal government for the year ended September 30, 2021. The information in this schedule 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). 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, wherein certain types of expenditures are not allowable or are limited as to reimbursement. 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. De Minimis Rate Used: N Rate Explanation: The Health Center has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance. In addition, the Health Center did not receive noncash assistance relating to any federal programs. The Health Center has not elected to use the 10% de minimis indirect cost rate as allowed in the Uniform Guidance. In addition, the Health Center did not receive noncash assistance relating to any federal programs.

Finding Details

Criteria: Under the Uniform Guidance, Section 200.512, Report Submission, the audit must be completed and the data collection form and single audit reporting package must be submitted to the Federal Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. Condition: The Health Center’s fiscal year 2021 single audit reporting package was not submitted to the FAC by the due date of March 15, 2022. Cause: The information was not timely filed because of delays in completing the single audit. Effect: The data collection form and single audit reporting package was not received by the FAC by the prescribed due date. Questioned costs: None Identification as a repeat finding, if applicable: Not applicable, this is not a repeat finding. Recommendation: We recommend the Health Center continue efforts to ensure future audits are filed timely completed. Views of responsible officials: Management agrees with the finding and recommendation.
Criteria: Under the Uniform Guidance, Section 200.512, Report Submission, the audit must be completed and the data collection form and single audit reporting package must be submitted to the Federal Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. Condition: The Health Center’s fiscal year 2021 single audit reporting package was not submitted to the FAC by the due date of March 15, 2022. Cause: The information was not timely filed because of delays in completing the single audit. Effect: The data collection form and single audit reporting package was not received by the FAC by the prescribed due date. Questioned costs: None Identification as a repeat finding, if applicable: Not applicable, this is not a repeat finding. Recommendation: We recommend the Health Center continue efforts to ensure future audits are filed timely completed. Views of responsible officials: Management agrees with the finding and recommendation.