FAC Explorer

Audit 32339

FY End
2022-06-30
Total Expended
$881,457
Findings
2
Programs
2
Organization: Emergycare Inc. (PA)
Year: 2022 Accepted: 2023-02-07
Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
34897 2022-001 Significant Deficiency - ABL
611339 2022-001 Significant Deficiency - ABL

Programs

ALN Program Spent Major Findings
93.498 Covid -19 - Provider Relief Fund $761,179 Yes 1
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $120,278 - 0

Contacts

Name Title Type
MBNYXEFCSCJ4 Abigail Johnson Auditee
8148701010 James Raley 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, with the exception of expenditures associated with the U.S. Department of Health and Human Services (HHS) Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement. For the awards related to the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution program (PRF), the 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 the HHS for PRF are assigned to Payment Received Periods (each, a Period) based upon the date each payment from the PRF was received. Each Period has a specified Period of Availability and timing of reporting requirements. Entities report into the HRSA PRF Reporting Portal after each Periods deadline to use the funds (i.e., after the end of the Period of Availability). De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of EmergyCare, Inc. (Organization) under programs of the federal government for the year ended June 30 2022. 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 EmergyCare, Inc., 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 Provider Relief Fund and American Rescue Plan (ARP) Rural Distri Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting, with the exception of expenditures associated with the U.S. Department of Health and Human Services (HHS) Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or limited as to reimbursement. For the awards related to the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution program (PRF), the 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 the HHS for PRF are assigned to Payment Received Periods (each, a Period) based upon the date each payment from the PRF was received. Each Period has a specified Period of Availability and timing of reporting requirements. Entities report into the HRSA PRF Reporting Portal after each Periods deadline to use the funds (i.e., after the end of the Period of Availability). De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Schedule includes $761,179 received from the HHS between July 1, 2020, through December 31, 2020. In accordance with guidance from the HHS, these amounts are presented as Period 2. Such amounts were recognized as Provider Relief Fund revenue in the Organizations June 30, 2021, financial statements. EmergyCare, Inc.s Tax Identification Number is 251430922.

Finding Details

Finding 2022-001
2022-001 - Significant Deficiency in Internal Control - Reporting Federal Program: COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number: 93.498 Federal Agency: U.S. Department of Health and Human Services Pass-through Agency: N/A Award Number: N/A Award Year: 2020 Compliance Requirement: Activities Allowed or Unallowed, Allowable Cost/Cost Principles, Reporting Questioned Costs: None Criteria: Non-federal entities in receipt of federal funds must comply with the requirements of 2 CFR 200.303(a), which require an entity to establish and maintain effective internal control over the federal award to ensure compliance with federal statutes, regulations, and the terms and conditions of the federal award. Recipients of Provider Relief Fund (PRF) payments must also comply with the reporting requirements described in the PRF terms and conditions and specified in directions issued by the U.S. Department of Health and Human Services. Condition and Context: The Organization did not complete the PRF reporting for Period 2 in accordance with the U.S. Department of Health and Human Services guidance. In the Organization's Option i calculation, the Organization inadvertently excluded from their reporting certain amounts attributable to implicit price concessions when determining net patient service revenue used to calculate lost revenue. The adjustment needed within the PRF report to correct the exclusion of implicit price concessions decreased cumulative total year-over-year lost revenues from $2,727,305 to $2,471,405 on total cumulative reported distributions of PRF funding of $1,161,130. Effect: The amounts reported to the Health Resources and Services Administration (HRSA) were not in accordance with established U.S. Department of Health and Human Services reporting guidance. Cause: An ineffective review control did not identify the error in the underlying calculation. Recommendation: We recommend that management implement procedures to ensure that the most recent guidance is reviewed and understood and that information used in preparation of the reports is reviewed, with errors addressed, prior to reporting. Additionally, we recommend that management update the reported revenue information in the PRF reporting portal during the next reporting period. View of Responsible Officials: Management agrees with the above noted finding and has updated their review process to be more effective. Management will also update the amounts in the PRF reporting portal during the next available reporting period.
Finding 2022-001
2022-001 - Significant Deficiency in Internal Control - Reporting Federal Program: COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number: 93.498 Federal Agency: U.S. Department of Health and Human Services Pass-through Agency: N/A Award Number: N/A Award Year: 2020 Compliance Requirement: Activities Allowed or Unallowed, Allowable Cost/Cost Principles, Reporting Questioned Costs: None Criteria: Non-federal entities in receipt of federal funds must comply with the requirements of 2 CFR 200.303(a), which require an entity to establish and maintain effective internal control over the federal award to ensure compliance with federal statutes, regulations, and the terms and conditions of the federal award. Recipients of Provider Relief Fund (PRF) payments must also comply with the reporting requirements described in the PRF terms and conditions and specified in directions issued by the U.S. Department of Health and Human Services. Condition and Context: The Organization did not complete the PRF reporting for Period 2 in accordance with the U.S. Department of Health and Human Services guidance. In the Organization's Option i calculation, the Organization inadvertently excluded from their reporting certain amounts attributable to implicit price concessions when determining net patient service revenue used to calculate lost revenue. The adjustment needed within the PRF report to correct the exclusion of implicit price concessions decreased cumulative total year-over-year lost revenues from $2,727,305 to $2,471,405 on total cumulative reported distributions of PRF funding of $1,161,130. Effect: The amounts reported to the Health Resources and Services Administration (HRSA) were not in accordance with established U.S. Department of Health and Human Services reporting guidance. Cause: An ineffective review control did not identify the error in the underlying calculation. Recommendation: We recommend that management implement procedures to ensure that the most recent guidance is reviewed and understood and that information used in preparation of the reports is reviewed, with errors addressed, prior to reporting. Additionally, we recommend that management update the reported revenue information in the PRF reporting portal during the next reporting period. View of Responsible Officials: Management agrees with the above noted finding and has updated their review process to be more effective. Management will also update the amounts in the PRF reporting portal during the next available reporting period.