FAC Explorer

Audit 322937

FY End
2023-12-31
Total Expended
$13.47M
Findings
2
Programs
2
Organization: Cassia (MN)
Year: 2023 Accepted: 2024-09-30
Auditor: Cla

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
500103 2023-001 Significant Deficiency Yes L
1076545 2023-001 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
10.766 Community Facilities Loans and Grants $11.67M Yes 0
93.498 Provider Relief Fund $1.80M Yes 1

Contacts

Name Title Type
WGF6Y6S9AF49 Kathy Youngquist Auditee
9528555000 Matt Wocken Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: No funds were identified as having been provided to subrecipients by the Corporation and accordingly, no funds identified in the Schedule of Expenditures of Federal Awards are attributable to subrecipient entities. There were no federal awards expended for noncash assistance or insurance. The Corporation has elected to use the 10% de minimis indirect cost rate allowable under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The Corporation has elected to use the 10% de minimis indirect cost rate allowable under the Uniform Guidance. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Cassia and Support Corporations (the Corporation) and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the applicable 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 of expenditures of federal awards presents only a selected portion of the operations of the Corporation, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Corporation. The Corporation’s consolidated financial statements include the operations of the Corporation’s controlled housing corporations, which received $16,730,061 in federal awards that are not included in the schedule of expenditures of federal awards for the year ended December 31, 2023. Our audit did not include the operations of the Corporation’s controlled housing corporations because the U.S. Department of Housing and Urban Development requires separate single audits to be performed on these entities in accordance with the Uniform Guidance.
Title: RECONCILIATION OF SEFA AND FINANCIAL STATEMENTS Accounting Policies: No funds were identified as having been provided to subrecipients by the Corporation and accordingly, no funds identified in the Schedule of Expenditures of Federal Awards are attributable to subrecipient entities. There were no federal awards expended for noncash assistance or insurance. The Corporation has elected to use the 10% de minimis indirect cost rate allowable under the Uniform Guidance. De Minimis Rate Used: Y Rate Explanation: The Corporation has elected to use the 10% de minimis indirect cost rate allowable under the Uniform Guidance. The consolidated financial statements reflect revenue recognized from the Provider Relief Fund of approximately $-0- and $3,763,364 for the years ended December 31, 2023 and 2022, respectively. Included in the revenue recognized during the year ended December 31, 2022 is $1,802,579 received during Period 5 and Period 6. The SEFA includes Provider Relief Funds of $1,802,579 that were received in Period 5 and Period 6 in accordance with the requirements of the compliance supplement for assistance listing number 93.498. The outstanding loan balance was $11,440,144 as of December 31, 2023.

Finding Details

Finding 2023-001
ederal Agency: U.S. Department of Health and Human Services Federal Program Name: COVID-19 Provider Relief Funding and American Rescue Plan Assistance Listing Number: 93.498 Award Period: January 1, 2023 – December 31, 2023 Type of Finding: 􀀁 Significant Deficiency in Internal Control over Compliance 􀀁 Other Matters Criteria or specific requirement: As outlined in the Terms and Conditions, Provider Relief Fund (PRF) payments may be used to prevent, prepare for, and respond to coronavirus, and for related expenses or lost revenues from health care services attributable to coronavirus. Lost revenues are to be calculated using actual quarterly revenue in the year of reporting compared to same quarterly revenues generated in 2019. Condition: The Corporation mis-reported lost revenues for one entity’s Period 6 PRF report. Questioned Costs: None Context: During testing, it was noted that one quarter of lost revenues did not agree with the Corporation’s internal financial statements, which was not identified in the Corporation’s review of the reporting submission. This resulted in overstating the Corporation’s lost revenues for the period by $100,000. Cause: Management oversight. Effect: The Corporation mis-keyed one quarter of lost revenue when completing the reporting submission. Repeat Finding: The finding is a repeat of a finding in the prior year. Prior year finding number was 2022-001. Recommendation: We recommend management review the lost revenues included on the reporting submissions to ensure the lost revenues agree with the internal financial statements. Views of responsible officials: There is no disagreement with the audit finding. They have a significant amount of unused lost revenue to cover the mis-reported lost revenue.
Finding 2023-001
ederal Agency: U.S. Department of Health and Human Services Federal Program Name: COVID-19 Provider Relief Funding and American Rescue Plan Assistance Listing Number: 93.498 Award Period: January 1, 2023 – December 31, 2023 Type of Finding: 􀀁 Significant Deficiency in Internal Control over Compliance 􀀁 Other Matters Criteria or specific requirement: As outlined in the Terms and Conditions, Provider Relief Fund (PRF) payments may be used to prevent, prepare for, and respond to coronavirus, and for related expenses or lost revenues from health care services attributable to coronavirus. Lost revenues are to be calculated using actual quarterly revenue in the year of reporting compared to same quarterly revenues generated in 2019. Condition: The Corporation mis-reported lost revenues for one entity’s Period 6 PRF report. Questioned Costs: None Context: During testing, it was noted that one quarter of lost revenues did not agree with the Corporation’s internal financial statements, which was not identified in the Corporation’s review of the reporting submission. This resulted in overstating the Corporation’s lost revenues for the period by $100,000. Cause: Management oversight. Effect: The Corporation mis-keyed one quarter of lost revenue when completing the reporting submission. Repeat Finding: The finding is a repeat of a finding in the prior year. Prior year finding number was 2022-001. Recommendation: We recommend management review the lost revenues included on the reporting submissions to ensure the lost revenues agree with the internal financial statements. Views of responsible officials: There is no disagreement with the audit finding. They have a significant amount of unused lost revenue to cover the mis-reported lost revenue.