FAC Explorer

Audit 321164

FY End
2023-12-31
Total Expended
$2.79M
Findings
6
Programs
2
Organization: Medical Debt Resolution, Inc. (NY)
Year: 2023 Accepted: 2024-09-26
Auditor: Bdo USA PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
498466 2023-001 - - AB
498467 2023-001 - - AB
498468 2023-002 - - L
1074908 2023-001 - - AB
1074909 2023-001 - - AB
1074910 2023-002 - - L

Programs

ALN Program Spent Major Findings
21.019 Coronavirus Relief Fund $35,722 Yes 2
21.027 Coronavirus State and Local Fiscal Recovery Funds $20,815 - 0

Contacts

Name Title Type
PLLQDMP3KLM5 Jana Knauerova Auditee
3473917220 Matthew Becker Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: 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. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Medical Debt Resolution, Inc. (the Organization) under programs of the federal government for the year ended December 31, 2023. 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). Because the Schedule presents only a selected portion of the operations of the Organization, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Organization.
Title: Summary of Significant Accounting Policies Accounting Policies: 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. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. 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.
Title: Indirect Cost Rate Accounting Policies: 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. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The Organization uses the 10% de minimis indirect cost rate on all programs where the budget allows.

Finding Details

Finding 2023-001
Finding Number: 2023-001 Activities Allowed or Unallowed; Allowable Costs/Cost Principles Information on Federal Program: United States Department of the Treasury • ALN Number: 21.019 • ALN Name: Coronavirus Relief Fund • Contract Periods: August 9, 2022 – December 31, 2024 (County of Cook, Illinois); June 16, 2023 – June 16, 2024 (City of New Orleans, Louisiana) Criteria - The Uniform Guidance Section §200.403(g) states that for costs to be allowable under federal awards, they must be adequately documented, and there must be sufficient documentation. Condition - During our testing of personnel costs, we noted that the retroactive payment for two samples that was expensed within one month was not properly allocated across previous months based on hours worked for the program in those months. Questioned Costs - Not determinable. Context - This is a condition identified per our compliance testing of personnel costs. Cause - Policies and procedures were not appropriately adhered to in certain instances to ensure that the retroactive pay was properly allocated across previous months. Effect or Potential Effect - We were unable to confirm the allowability, validity, and completeness of the expenses. Recommendation - We recommend that the Organization ensures its policies and procedures are followed on a consistent basis. Views of Responsible Official: The Organization agrees with the finding. The Organization continues to take steps to improve this process. See the Organization’s further response to this finding as described in the accompanying management’s planned corrective actions, Appendix A.
Finding 2023-001
Finding Number: 2023-001 Activities Allowed or Unallowed; Allowable Costs/Cost Principles Information on Federal Program: United States Department of the Treasury • ALN Number: 21.019 • ALN Name: Coronavirus Relief Fund • Contract Periods: August 9, 2022 – December 31, 2024 (County of Cook, Illinois); June 16, 2023 – June 16, 2024 (City of New Orleans, Louisiana) Criteria - The Uniform Guidance Section §200.403(g) states that for costs to be allowable under federal awards, they must be adequately documented, and there must be sufficient documentation. Condition - During our testing of personnel costs, we noted that the retroactive payment for two samples that was expensed within one month was not properly allocated across previous months based on hours worked for the program in those months. Questioned Costs - Not determinable. Context - This is a condition identified per our compliance testing of personnel costs. Cause - Policies and procedures were not appropriately adhered to in certain instances to ensure that the retroactive pay was properly allocated across previous months. Effect or Potential Effect - We were unable to confirm the allowability, validity, and completeness of the expenses. Recommendation - We recommend that the Organization ensures its policies and procedures are followed on a consistent basis. Views of Responsible Official: The Organization agrees with the finding. The Organization continues to take steps to improve this process. See the Organization’s further response to this finding as described in the accompanying management’s planned corrective actions, Appendix A.
Finding 2023-002
Reporting Information on Federal Program: United States Department of the Treasury • ALN Number: 21.019 • ALN Name: Coronavirus Relief Fund • Contract Period: June 16, 2023 – June 16, 2024 (City of New Orleans, Louisiana) Criteria - For ALN 21.019, there are reporting requirements that are specific to the grant agreement that the Organization, as a sub-recipient, is required to comply with. The City of New Orleans, Louisiana, requires financial reports to be submitted monthly no later than 25 days following the end of the period covered by the invoice. Condition - During our testing of reporting, we noted that the monthly reports were not filed on time. Questioned Costs - None noted. Context - This is a condition identified per review of the Organization’s compliance with reporting requirements. Cause - Timing of the filing requirements was not met. Effect or Potential Effect - We were able to observe and conclude that the Organization did not comply with certain monthly reporting requirements. Recommendation - Management should submit reports timely. Views of Responsible Official: The Organization agrees with the finding. The Organization continues to take steps to improve this process. See the Organization’s further response to this finding as described in the accompanying management’s planned corrective actions, Appendix A.
Finding 2023-001
Finding Number: 2023-001 Activities Allowed or Unallowed; Allowable Costs/Cost Principles Information on Federal Program: United States Department of the Treasury • ALN Number: 21.019 • ALN Name: Coronavirus Relief Fund • Contract Periods: August 9, 2022 – December 31, 2024 (County of Cook, Illinois); June 16, 2023 – June 16, 2024 (City of New Orleans, Louisiana) Criteria - The Uniform Guidance Section §200.403(g) states that for costs to be allowable under federal awards, they must be adequately documented, and there must be sufficient documentation. Condition - During our testing of personnel costs, we noted that the retroactive payment for two samples that was expensed within one month was not properly allocated across previous months based on hours worked for the program in those months. Questioned Costs - Not determinable. Context - This is a condition identified per our compliance testing of personnel costs. Cause - Policies and procedures were not appropriately adhered to in certain instances to ensure that the retroactive pay was properly allocated across previous months. Effect or Potential Effect - We were unable to confirm the allowability, validity, and completeness of the expenses. Recommendation - We recommend that the Organization ensures its policies and procedures are followed on a consistent basis. Views of Responsible Official: The Organization agrees with the finding. The Organization continues to take steps to improve this process. See the Organization’s further response to this finding as described in the accompanying management’s planned corrective actions, Appendix A.
Finding 2023-001
Finding Number: 2023-001 Activities Allowed or Unallowed; Allowable Costs/Cost Principles Information on Federal Program: United States Department of the Treasury • ALN Number: 21.019 • ALN Name: Coronavirus Relief Fund • Contract Periods: August 9, 2022 – December 31, 2024 (County of Cook, Illinois); June 16, 2023 – June 16, 2024 (City of New Orleans, Louisiana) Criteria - The Uniform Guidance Section §200.403(g) states that for costs to be allowable under federal awards, they must be adequately documented, and there must be sufficient documentation. Condition - During our testing of personnel costs, we noted that the retroactive payment for two samples that was expensed within one month was not properly allocated across previous months based on hours worked for the program in those months. Questioned Costs - Not determinable. Context - This is a condition identified per our compliance testing of personnel costs. Cause - Policies and procedures were not appropriately adhered to in certain instances to ensure that the retroactive pay was properly allocated across previous months. Effect or Potential Effect - We were unable to confirm the allowability, validity, and completeness of the expenses. Recommendation - We recommend that the Organization ensures its policies and procedures are followed on a consistent basis. Views of Responsible Official: The Organization agrees with the finding. The Organization continues to take steps to improve this process. See the Organization’s further response to this finding as described in the accompanying management’s planned corrective actions, Appendix A.
Finding 2023-002
Reporting Information on Federal Program: United States Department of the Treasury • ALN Number: 21.019 • ALN Name: Coronavirus Relief Fund • Contract Period: June 16, 2023 – June 16, 2024 (City of New Orleans, Louisiana) Criteria - For ALN 21.019, there are reporting requirements that are specific to the grant agreement that the Organization, as a sub-recipient, is required to comply with. The City of New Orleans, Louisiana, requires financial reports to be submitted monthly no later than 25 days following the end of the period covered by the invoice. Condition - During our testing of reporting, we noted that the monthly reports were not filed on time. Questioned Costs - None noted. Context - This is a condition identified per review of the Organization’s compliance with reporting requirements. Cause - Timing of the filing requirements was not met. Effect or Potential Effect - We were able to observe and conclude that the Organization did not comply with certain monthly reporting requirements. Recommendation - Management should submit reports timely. Views of Responsible Official: The Organization agrees with the finding. The Organization continues to take steps to improve this process. See the Organization’s further response to this finding as described in the accompanying management’s planned corrective actions, Appendix A.