Audit 324388

FY End
2021-12-31
Total Expended
$1.73M
Findings
2
Programs
1
Year: 2021 Accepted: 2024-10-10
Auditor: Bonadio & CO LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
502346 2021-001 Material Weakness - B
1078788 2021-001 Material Weakness - B

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $1.73M Yes 1

Contacts

Name Title Type
UFGLTXADMAR3 Joel Green Auditee
8457381843 Mark Perez Auditor
No contacts on file

Notes to SEFA

Title: General Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Community Health Aide Services, Inc. (the Organization) under programs of the federal government for the year ended December 31, 2021 and has been prepared in accordance with accounting principles generally accepted in the United States of America. The information in the 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. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Community Health Aide Services, Inc. (the Organization) under programs of the federal government for the year ended December 31, 2021 and has been prepared in accordance with accounting principles generally accepted in the United States of America. The information in the 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: Basis of Accounting Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Community Health Aide Services, Inc. (the Organization) under programs of the federal government for the year ended December 31, 2021 and has been prepared in accordance with accounting principles generally accepted in the United States of America. The information in the 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. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the 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.
Title: Indirect Cost Rate Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Community Health Aide Services, Inc. (the Organization) under programs of the federal government for the year ended December 31, 2021 and has been prepared in accordance with accounting principles generally accepted in the United States of America. The information in the 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. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Provider Relief Funds (PRF) Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Community Health Aide Services, Inc. (the Organization) under programs of the federal government for the year ended December 31, 2021 and has been prepared in accordance with accounting principles generally accepted in the United States of America. The information in the 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. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The amount included in the schedule of expenditures of federal awards is based upon the March 31, 2022 PRF report.

Finding Details

1. Finding Number 2021-001 (Material Weakness - ASSISTANCE LISTING #93.498) Department of Health and Human Services Grant number N/A Grant period 1/1/2020 through 12/31/2021 Condition: Out of 40 transactions selected for testing, 4 selections were payroll transactions that lacked proper employee and management approval of the effective pay rate and one selection was a rental payment that did not have a supporting lease agreement. Criteria: Evidence of proper approval from the employee and management approval of pay rates should be retained to ensure appropriate compensation. Proper retention of disbursement documentation should be maintained to support any transactions. Cause: The internal control process of documenting approved pay rates and all vendor agreements is not being fully completed causing a shortfall in record retention. Effect: Without documented approval, it is possible an employee may not be paid at the proper rate and an unauthorized disbursement may have occurred. Context: A haphazardly selected sample of 40 transactions totaling $263,717 was selected for audit from a population of $1,727,097. The testing found that 5 transactions did not have appropriate supporting documentation. The known questioned costs related to this issue totaled approximately $1,040. The sample was not statistically valid. Recommendation: Establish policies and procedures to ensure proper retention of transaction documentation and internal control review. Management’s Response: Policies and procedures have been established to properly meet the recommendation.
1. Finding Number 2021-001 (Material Weakness - ASSISTANCE LISTING #93.498) Department of Health and Human Services Grant number N/A Grant period 1/1/2020 through 12/31/2021 Condition: Out of 40 transactions selected for testing, 4 selections were payroll transactions that lacked proper employee and management approval of the effective pay rate and one selection was a rental payment that did not have a supporting lease agreement. Criteria: Evidence of proper approval from the employee and management approval of pay rates should be retained to ensure appropriate compensation. Proper retention of disbursement documentation should be maintained to support any transactions. Cause: The internal control process of documenting approved pay rates and all vendor agreements is not being fully completed causing a shortfall in record retention. Effect: Without documented approval, it is possible an employee may not be paid at the proper rate and an unauthorized disbursement may have occurred. Context: A haphazardly selected sample of 40 transactions totaling $263,717 was selected for audit from a population of $1,727,097. The testing found that 5 transactions did not have appropriate supporting documentation. The known questioned costs related to this issue totaled approximately $1,040. The sample was not statistically valid. Recommendation: Establish policies and procedures to ensure proper retention of transaction documentation and internal control review. Management’s Response: Policies and procedures have been established to properly meet the recommendation.