FAC Explorer

Audit 322883

FY End
2023-12-31
Total Expended
$1.27M
Findings
2
Programs
2
Organization: Episcopal Homes of Minnesota and Affiliates (MN)
Year: 2023 Accepted: 2024-09-30
Auditor: Wipfli LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
499935 2023-002 Significant Deficiency - B
1076377 2023-002 Significant Deficiency - B

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $962,563 Yes 1
14.239 Home Investment Partnerships Program $311,004 - 0

Contacts

Name Title Type
C164L5A8BA53 Sherri Friedrich Auditee
6512098539 Donna Mae Huss Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Summary of Significant Accounting Policies With the exception of expenditures related to the U.S. Department of Health and Human Services Provider Relief Fund (PRF), expenditures on the Schedule are reported on the accrual basis of accounting and 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. The PRF is not subject to cost principle requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF are based on the PRF period of availability, terms and conditions of the PRF program, and amounts reported in the PRF portal for the Reporting Period 5 and Reporting Period 6. De Minimis Rate Used: N Rate Explanation: Indirect Cost The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Episcopal Homes of Minnesota and Affiliates (the “Organization”). 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 (the “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. Federal award activity of Episcopal Church Home of Minnesota (Taxpayer Identification Number (TIN) 41-0706110), Episcopal Homes on University Avenue (TIN 80-0910793), and Episcopal Home Care and Services (TIN 27-0907277), is included in the attached Schedule. The consolidated financial statements of the Organization also include the operations of Carty Heights, Seabury, Kings Crossing Apartments, and Midway Pointe, which received $263,520, $267,280, $274,842, and $254,770, respectively, in federal awards during 2023 and had $5,896,800, $4,116,100, $6,378,400, and $7,667,900, respectively, in capital advance mortgage balances outstanding that were considered to be federal awards. The consolidated financial statements of the Organization also include the operations of Cornelia House, which has a loan that is insured by HUD under Section 221(d)(4) of the National Housing Act. The balance of the loan balance outstanding at December 31, 2023, is $3,134,617. These amounts are not included in the attached Schedule because each entity is required to have separate audits performed under the Uniform Guidance.
Title: Subrecipients Accounting Policies: Summary of Significant Accounting Policies With the exception of expenditures related to the U.S. Department of Health and Human Services Provider Relief Fund (PRF), expenditures on the Schedule are reported on the accrual basis of accounting and 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. The PRF is not subject to cost principle requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF are based on the PRF period of availability, terms and conditions of the PRF program, and amounts reported in the PRF portal for the Reporting Period 5 and Reporting Period 6. De Minimis Rate Used: N Rate Explanation: Indirect Cost The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization passed no federal awards through to subrecipients.
Title: HOME Investment Partnership Program Accounting Policies: Summary of Significant Accounting Policies With the exception of expenditures related to the U.S. Department of Health and Human Services Provider Relief Fund (PRF), expenditures on the Schedule are reported on the accrual basis of accounting and 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. The PRF is not subject to cost principle requirements contained in the Uniform Guidance. Expenditures reported on the Schedule for PRF are based on the PRF period of availability, terms and conditions of the PRF program, and amounts reported in the PRF portal for the Reporting Period 5 and Reporting Period 6. De Minimis Rate Used: N Rate Explanation: Indirect Cost The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization has an outstanding loan with the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota which was funded by the U.S. Department of Housing and Urban Development. The loan balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The Organization received no additional loans during the year. The balance of the loan outstanding at December 31, 2023, is $311,004.

Finding Details

Finding 2023-002
U.S. Department of Health and Human Services ALN: 93.498 Provider Relief Fund (PRF) Type of Finding: Noncompliance and Internal Control, Significant Deficiency Compliance Requirement: Allowable Costs Condition: The Organization is required to use the Provider Relief Funds to prevent, prepare for, and respond to coronavirus and to maintain documentation that supports that payments to reimburse the Organization were for healthcare-related expenses attributable to coronavirus or lost revenues. Criteria: 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. Per the terms and conditions of the Provider Relief Fund, payments received may not be applied to the same expenses and lost revenues that Provider Relief Fund payments received in prior payment periods already reimbursed. Cause: The Organization inadvertently reported covid-expenditures into the reporting portal for Reporting Period 6 that had been reported in Reporting Period 1. Effect: The amounts reported in the portal for Reporting Period 6 had payroll disbursements, totaling $217,244, which were previously reporting in Reporting Period 1. The Organization had sufficient lost revenues to cover these duplicated expenses. No funds were estimated to be due back to the Provider Relief Fund. Questioned Costs: None. Recommendation: We recommend the Organization ensure supporting documentation and reporting requirements for federal grant funds are properly reviewed to ensure submission information is accurately presented. View of Responsible Officials: The Organization agrees with the finding and recommendation and will review procedures to ensure future reporting submissions are detail reviewed.
Finding 2023-002
U.S. Department of Health and Human Services ALN: 93.498 Provider Relief Fund (PRF) Type of Finding: Noncompliance and Internal Control, Significant Deficiency Compliance Requirement: Allowable Costs Condition: The Organization is required to use the Provider Relief Funds to prevent, prepare for, and respond to coronavirus and to maintain documentation that supports that payments to reimburse the Organization were for healthcare-related expenses attributable to coronavirus or lost revenues. Criteria: 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. Per the terms and conditions of the Provider Relief Fund, payments received may not be applied to the same expenses and lost revenues that Provider Relief Fund payments received in prior payment periods already reimbursed. Cause: The Organization inadvertently reported covid-expenditures into the reporting portal for Reporting Period 6 that had been reported in Reporting Period 1. Effect: The amounts reported in the portal for Reporting Period 6 had payroll disbursements, totaling $217,244, which were previously reporting in Reporting Period 1. The Organization had sufficient lost revenues to cover these duplicated expenses. No funds were estimated to be due back to the Provider Relief Fund. Questioned Costs: None. Recommendation: We recommend the Organization ensure supporting documentation and reporting requirements for federal grant funds are properly reviewed to ensure submission information is accurately presented. View of Responsible Officials: The Organization agrees with the finding and recommendation and will review procedures to ensure future reporting submissions are detail reviewed.