Audit 329519

FY End
2023-06-30
Total Expended
$3.46M
Findings
2
Programs
1
Organization: Concepts of Independence, Inc. (NY)
Year: 2023 Accepted: 2024-11-22

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
509789 2023-002 Significant Deficiency Yes A
1086231 2023-002 Significant Deficiency Yes A

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $3.46M Yes 1

Contacts

Name Title Type
YBL2XTMBPNV6 Anthony Caputo Auditee
2122933999 Yossi Messafi 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: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Concepts of Independence, Inc. (the “Organization”) under programs of the federal government for the year ended June 30, 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: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution – Assistance Listing Number 93.498 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: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. For the awards from the Department of Health and Human Services (“HHS”) related to the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (“PRF”) program, HHS has indicated that the amounts on the Schedule should be reported in accordance with the reporting requirements of the Health Resources and Service Administration (“HRSA”) PRF Reporting Portal. Payments from 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 receiving PRF are required to report in the HRSA PRF Reporting Portal after each Period's deadline (i.e., after the end of the Period of Availability). The Schedule includes all Period 4 PRF payments received July 1, 2021 to December 31, 2021 reported by the Organization to HRSA in the PRF Reporting Portal totaling $3,464,975. Such amounts were recognized as other income in the Organization’s financial statements for the year ended June 30, 2022.
Title: Personal Protective Equipment (“PPE”) (Unaudited) 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: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization did not receive donated PPE from a federal source during the year ended June 30, 2023.

Finding Details

Finding 2023-002: Revenue reported in PRF submission was overstated for 2nd quarter in 2021 and the 2nd quarter of 2022 Federal Assistance Listing Number Name of Federal Program or Cluster 93.498 COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: HRSA requires entities to report quarterly net patient revenue under the PRF reporting requirements that is net of adjustments for all third-party payers, charity care adjustments, bad debt, and any discounts or adjustments. Condition: Management’s submission reported revenues for the second quarter of 2021 gross of adjustments for bad debt. Context: The condition was noted during our testwork over the quarterly reported revenues. Cause: Management was unaware of the requirement to report patient revenue net of adjustments. Effect: Amount reported for the 2nd quarter of 2021 and the 2nd quarter of 2022 were overstated resulting in lost revenues that were higher than actual. This had no effect on lost revenue recovered by the Organization since the corrected lost revenue remained higher than the amount provided by the PRF program. Questioned Costs: None Repeat Finding: Yes, 2022-002 Recommendation: We recommend that management become familiar with all PRF reporting requirements should additional funds become available. View of Responsible Official: See Corrective Action Plan
Finding 2023-002: Revenue reported in PRF submission was overstated for 2nd quarter in 2021 and the 2nd quarter of 2022 Federal Assistance Listing Number Name of Federal Program or Cluster 93.498 COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: HRSA requires entities to report quarterly net patient revenue under the PRF reporting requirements that is net of adjustments for all third-party payers, charity care adjustments, bad debt, and any discounts or adjustments. Condition: Management’s submission reported revenues for the second quarter of 2021 gross of adjustments for bad debt. Context: The condition was noted during our testwork over the quarterly reported revenues. Cause: Management was unaware of the requirement to report patient revenue net of adjustments. Effect: Amount reported for the 2nd quarter of 2021 and the 2nd quarter of 2022 were overstated resulting in lost revenues that were higher than actual. This had no effect on lost revenue recovered by the Organization since the corrected lost revenue remained higher than the amount provided by the PRF program. Questioned Costs: None Repeat Finding: Yes, 2022-002 Recommendation: We recommend that management become familiar with all PRF reporting requirements should additional funds become available. View of Responsible Official: See Corrective Action Plan