Audit 330364

FY End
2019-06-30
Total Expended
$838,224
Findings
2
Programs
3
Organization: Horizon Healthcare Partners (RI)
Year: 2019 Accepted: 2024-12-02

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
512541 2019-001 Significant Deficiency - L
1088983 2019-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
93.788 Opioid Str $350,461 Yes 1
93.959 Block Grants for Prevention and Treatment of Substance Abuse $313,562 - 0
93.958 Block Grants for Community Mental Health Services $174,201 - 0

Contacts

Name Title Type
LSMDMWLRKXK4 Amy Kalinick Auditee
4014374807 Allan Smith Auditor
No contacts on file

Notes to SEFA

Title: Scope of Audit Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (hereinafter “Schedule”) includes the federal grant activity of the Organization and is presented on the accrual basis. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. 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, nor cash flows of the Organization. De Minimis Rate Used: Y Rate Explanation: The Organization elected to use the option of the ten percent (10%) de minimis indirect cost rate. Horizon Healthcare Partners (hereinafter “Organization”) is a non-profit Organization established under the laws of the State of Rhode Island. All operations related to the Organization’s federal award programs are included in the scope of the audit in accordance with Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. The U.S. Department of Health and Human Services has been designated as the Organization’s oversight agency for the single audit. Compliance testing of all applicable types of compliance requirements, as described in the Compliance Supplement, was performed. The monetary threshold used to distinguish between Type A programs and Type B programs was $750,000. Specifically, compliance testing and tests of controls were performed for the following Type B award program which was tested as major federal awards:
Title: Period Audited Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (hereinafter “Schedule”) includes the federal grant activity of the Organization and is presented on the accrual basis. The information in the schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. 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, nor cash flows of the Organization. De Minimis Rate Used: Y Rate Explanation: The Organization elected to use the option of the ten percent (10%) de minimis indirect cost rate. Single audit testing procedures were performed for the Organization’s major federal award transactions during the year ended June 30, 2019.

Finding Details

Statement of condition: The Organization has been challenged in recent years to provide for the timely reporting of financial activities to its funding sources; particularly the financial statement audit and major Federal program compliance in accordance with the Federal Single Audit Act. Timely financial reporting is a critical internal control feature for the Board and management to provide for prudent oversight of program operations. Further, many of the Organization’s grants and contracts have accountability to an approved budget from the funding source. Criteria: The State of Rhode Island, Department of Behavioral Healthcare, Developmental Disabilities, and Hospitals as well as the Federal grants and contracts require financial and programmatic compliance reporting via an external audit within nine (9) months of the fiscal year-end. Cause of condition: There was a lack of clarity among the subcontractors regarding the reporting responsibilities for grant activities for the funding agencies. Effect of condition and context: Non-compliance with the State of Rhode Island, Department of Behavioral Healthcare, Developmental Disabilities, and Hospitals and the Federal Single Audit Act’s reporting requirements. Recommendation: We recommend the Organization provide for timely audited financial and program compliance reporting consistent with the State of Rhode Island, Department of Behavioral Healthcare, Developmental Disabilities, and Hospitals as well as the Federal grants and contracts.
Statement of condition: The Organization has been challenged in recent years to provide for the timely reporting of financial activities to its funding sources; particularly the financial statement audit and major Federal program compliance in accordance with the Federal Single Audit Act. Timely financial reporting is a critical internal control feature for the Board and management to provide for prudent oversight of program operations. Further, many of the Organization’s grants and contracts have accountability to an approved budget from the funding source. Criteria: The State of Rhode Island, Department of Behavioral Healthcare, Developmental Disabilities, and Hospitals as well as the Federal grants and contracts require financial and programmatic compliance reporting via an external audit within nine (9) months of the fiscal year-end. Cause of condition: There was a lack of clarity among the subcontractors regarding the reporting responsibilities for grant activities for the funding agencies. Effect of condition and context: Non-compliance with the State of Rhode Island, Department of Behavioral Healthcare, Developmental Disabilities, and Hospitals and the Federal Single Audit Act’s reporting requirements. Recommendation: We recommend the Organization provide for timely audited financial and program compliance reporting consistent with the State of Rhode Island, Department of Behavioral Healthcare, Developmental Disabilities, and Hospitals as well as the Federal grants and contracts.