FAC Explorer

Audit 333946

FY End
2024-06-30
Total Expended
$17.45M
Findings
8
Programs
13
Organization: Project Home (PA)
Year: 2024 Accepted: 2024-12-19
Auditor: Marcum LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
516124 2024-001 Significant Deficiency - N
516125 2024-001 Significant Deficiency - N
516126 2024-001 Significant Deficiency - N
516127 2024-001 Significant Deficiency - N
1092566 2024-001 Significant Deficiency - N
1092567 2024-001 Significant Deficiency - N
1092568 2024-001 Significant Deficiency - N
1092569 2024-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $4.12M - 0
93.958 Block Grants for Community Mental Health Services $1.35M - 0
14.218 Community Development Block Grants/entitlement Grants $944,671 Yes 0
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $623,023 Yes 1
93.667 Social Services Block Grant $611,621 - 0
93.150 Projects for Assistance in Transition From Homelessness (path) $174,598 - 0
14.871 Section 8 Housing Choice Vouchers $116,149 - 0
93.526 Affordable Care Act (aca) Grants for Capital Development in Health Centers $62,116 Yes 0
93.217 Family Planning_services $47,871 - 0
14.267 Continuum of Care Program $40,947 - 0
17.259 Wia Youth Activities $40,512 - 0
93.527 Affordable Care Act (aca) Grants for New and Expanded Services Under the Health Center Program $18,105 Yes 1
97.024 Emergency Food and Shelter National Board Program $15,313 - 0

Contacts

Name Title Type
YYU3PQUJBCP1 Elizabeth Croop Auditee
2153095275 Marie Decicco Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: The accompanying schedule of expenditures of federal, state and city awards is presented using 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. Federal financial assistance expenditures are reported on the consolidated statements of activities and changes in net assets as contract revenue and included in the total agency expenditures. In certain programs, the expenditures reported in the basic consolidated financial statements may differ from the expenditures reported in the schedule of expenditures of federal, state and city awards due to program expenditures exceeding grant or contract budget limitations that are not included as federal, state and city financial assistance. De Minimis Rate Used: N Rate Explanation: We do not elect the de minimis rate as we cover most of our administrative costs with non-federal dollars, therefore our rate is lower than 10%. For our Continuum of Care contracts, we use rates lower than the 10% for adminstrative costs and the grants do not allow for an indirect cost rates to be used. The accompanying schedule of expenditures of federal, state and city awards (the “Schedule”) presents the activities in the federal, state and city financial assistance programs of Project HOME for the year ended June 30, 2024. All governmental financial assistance received directly from federal agencies as well as financial governmental assistance passed through other state and local agencies is included on the Schedule. All of the awards are used to fund the operations and maintenance of various shelter facilities and to provide medical and other services to individuals who are low income or homeless. 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, and the City of Philadelphia Subrecipient Audit Guide. Because the Schedule presents only a selected portion of the operations of Project HOME, it is not intended to and does not present the consolidated financial position, changes in net assets or cash flows of Project HOME.
Title: Summary of Significant Accounting Policies Accounting Policies: The accompanying schedule of expenditures of federal, state and city awards is presented using 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. Federal financial assistance expenditures are reported on the consolidated statements of activities and changes in net assets as contract revenue and included in the total agency expenditures. In certain programs, the expenditures reported in the basic consolidated financial statements may differ from the expenditures reported in the schedule of expenditures of federal, state and city awards due to program expenditures exceeding grant or contract budget limitations that are not included as federal, state and city financial assistance. De Minimis Rate Used: N Rate Explanation: We do not elect the de minimis rate as we cover most of our administrative costs with non-federal dollars, therefore our rate is lower than 10%. For our Continuum of Care contracts, we use rates lower than the 10% for adminstrative costs and the grants do not allow for an indirect cost rates to be used. (1) The accompanying schedule of expenditures of federal, state and city awards is presented using 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. (2) Federal, state and city financial assistance expenditures are reported on the consolidated statements of activities and changes in net assets as contract revenue and included in the total agency expenditures. In certain programs, the expenditures reported in the basic consolidated financial statements may differ from the expenditures reported in the schedule of expenditures of federal, state and city awards due to program expenditures exceeding grant or contract budget limitations that are not included as federal, state and city financial assistance. (3) Project HOME did not elect to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: U.S. Department of Housing and Urban Development Accounting Policies: The accompanying schedule of expenditures of federal, state and city awards is presented using 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. Federal financial assistance expenditures are reported on the consolidated statements of activities and changes in net assets as contract revenue and included in the total agency expenditures. In certain programs, the expenditures reported in the basic consolidated financial statements may differ from the expenditures reported in the schedule of expenditures of federal, state and city awards due to program expenditures exceeding grant or contract budget limitations that are not included as federal, state and city financial assistance. De Minimis Rate Used: N Rate Explanation: We do not elect the de minimis rate as we cover most of our administrative costs with non-federal dollars, therefore our rate is lower than 10%. For our Continuum of Care contracts, we use rates lower than the 10% for adminstrative costs and the grants do not allow for an indirect cost rates to be used. DIRECT PROGRAMS Project HOME was awarded a one-year grant for $3,582,401 from the Department of Housing and Urban Development (“HUD”) for a supportive housing program under HUD’s Continuum of Care. These grants expired at various times through July 2024. Project HOME was awarded additional grants for $3,367,591 for grants ending in 2025 from HUD to continue the supportive housing programs. Total funds expended under these grants were $3,473,149 as of June 30, 2024. INDIRECT PROGRAMS Project HOME entered into a contract with the Philadelphia Office of Homeless Services to provide Continuum of Care services. The contract provides for expanding the capacity of existing street outreach teams to provide access to the Coordinated Entry and Assessment-Based Housing Referral System (CEA-BHRS) process through both outreach and in-reach mechanisms. Total funds utilized under all Continuum of Care contracts were $58,309 for the year ended June 30, 2024. This represents allowable contract rent and salaries of $55,532 plus general and administrative charges of $2,777.
Title: Redevelopment Authority of The City of Philadelphia Accounting Policies: The accompanying schedule of expenditures of federal, state and city awards is presented using 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. Federal financial assistance expenditures are reported on the consolidated statements of activities and changes in net assets as contract revenue and included in the total agency expenditures. In certain programs, the expenditures reported in the basic consolidated financial statements may differ from the expenditures reported in the schedule of expenditures of federal, state and city awards due to program expenditures exceeding grant or contract budget limitations that are not included as federal, state and city financial assistance. De Minimis Rate Used: N Rate Explanation: We do not elect the de minimis rate as we cover most of our administrative costs with non-federal dollars, therefore our rate is lower than 10%. For our Continuum of Care contracts, we use rates lower than the 10% for adminstrative costs and the grants do not allow for an indirect cost rates to be used. During the year ended June 30, 2011, Project HOME entered into a note payable agreement with the Redevelopment Authority of the City of Philadelphia, for a total amount not to exceed $9,203,039. As of June 30, 2024, the total amount outstanding on this loan was $9,166,357. The note proceeds were used to renovate a residential facility in North Philadelphia.
Title: U.S. Department of Health and Human Services Accounting Policies: The accompanying schedule of expenditures of federal, state and city awards is presented using 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. Federal financial assistance expenditures are reported on the consolidated statements of activities and changes in net assets as contract revenue and included in the total agency expenditures. In certain programs, the expenditures reported in the basic consolidated financial statements may differ from the expenditures reported in the schedule of expenditures of federal, state and city awards due to program expenditures exceeding grant or contract budget limitations that are not included as federal, state and city financial assistance. De Minimis Rate Used: N Rate Explanation: We do not elect the de minimis rate as we cover most of our administrative costs with non-federal dollars, therefore our rate is lower than 10%. For our Continuum of Care contracts, we use rates lower than the 10% for adminstrative costs and the grants do not allow for an indirect cost rates to be used. Project HOME entered into a program funded contract number 21-20005-04 with the City of Philadelphia, Department of Publich Health/Office of Behavioral Health and Intellectual Disability Services for certain programs that provide housing and supportive services to people who are homeless. The contract, consisting of federal, state and City of Philadelphia funding, is applied to several separate program activities all executed under a single contract with a total budget of $4,302,715. The total amount expended within the contract budget as of June 30, 2024 was $4,069,556. In addition, Project HOME entered into a contract with the Health Resources and Services Administration for the period February 1, 2023 through January 31, 2024 and February 1, 2024 through January 31, 2025 to provide continued operating support for primary and preventive healthcare services and its expanded offering of dental services at the Wellness Center. The total amount expended under these contracts was $2,166,252 for the year ended June 30, 2024. During the year ended June 30, 2024, Project HOME received additional funding as a result of the American Rescue Plan Act of 2021 in the amount of $70,217.
Title: Self Insurance Accounting Policies: The accompanying schedule of expenditures of federal, state and city awards is presented using 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. Federal financial assistance expenditures are reported on the consolidated statements of activities and changes in net assets as contract revenue and included in the total agency expenditures. In certain programs, the expenditures reported in the basic consolidated financial statements may differ from the expenditures reported in the schedule of expenditures of federal, state and city awards due to program expenditures exceeding grant or contract budget limitations that are not included as federal, state and city financial assistance. De Minimis Rate Used: N Rate Explanation: We do not elect the de minimis rate as we cover most of our administrative costs with non-federal dollars, therefore our rate is lower than 10%. For our Continuum of Care contracts, we use rates lower than the 10% for adminstrative costs and the grants do not allow for an indirect cost rates to be used. The Organization is self-insured for dental coverage and for State Unemployment Compensation (SUTA). There were 220 employees covered under the dental plan as of June 30, 2024. Project HOME incurred $97,710 in administrative fees and dental claims for the year ended June 30, 2024. The plan caps each individual employee at $1,000 per year and caps families at $2,500 per family. The maximum insurance coverage for Project HOME is $301,000 per plan year. All employees are covered for SUTA. There were 446 employees at June 30, 2024. Project HOME incurred $172,249 in administrative fees and claim deposits for the year ended June 30, 2024. The Organization has $1,000,000 in coverage and a stop loss attachment point of $654,196 for a total stop loss limit of $1,654,196.

Finding Details

Finding 2024-001
Finding 2024-001 – Special Tests and Provisions: Sliding Fee Determination and Related Patient Billing U.S. Department of Health and Human Services Assistance Listing Number 93.224 / 93.527, Health Center Program Cluster Criteria: Special Tests and Provisions: Sliding Fee Discounts. All section 330-funded health centers must prepare and apply a sliding fee discount schedule (SFDS), which adjust amount owed for health center services by eligible patients based on the patient’s ability to pay. Management is responsible to ensure controls are in place for patients to be charged in accordance with the SFDS and that income verifications are performed at least annually. Condition: Patients received a sliding fee discount that was inconsistent with the stated sliding fee discount categories under the Organization’s policy. Context: A sample of 40 patients were tested out of the total population of 999 encounters. The sampling methodology used is not and is not intended to be statistically valid. 19 patients received a sliding fee adjustment that was inconsistent with the approved policy for the proper sliding fee adjustments based on their income documentation and the organization did not have income documentation for 4 patients that received a sliding fee adjustment. Effect: Sliding fee discounts were given to patients that were inconsistent with the Organization’s sliding fee discount policy. Cause: The Organization did not comply with their sliding fee policy. Based on audit procedures performed, the income verification process was applied properly or there was lack of documentation to verify it was applied properly and therefore, patients were not charged the correct amount for the services provided. Questioned costs: None Repeat Finding: Is not a repeat finding. Recommendations: We recommend management continue to ensure all personnel understand the sliding fee scale policy and adhere to the requirements and guidelines set forth in the policy. Procedures should be implemented to ensure that eligible patients receive discounts in accordance with the sliding fee scale and the Organization’s Policy Compliance Manual.
Finding 2024-001
Finding 2024-001 – Special Tests and Provisions: Sliding Fee Determination and Related Patient Billing U.S. Department of Health and Human Services Assistance Listing Number 93.224 / 93.527, Health Center Program Cluster Criteria: Special Tests and Provisions: Sliding Fee Discounts. All section 330-funded health centers must prepare and apply a sliding fee discount schedule (SFDS), which adjust amount owed for health center services by eligible patients based on the patient’s ability to pay. Management is responsible to ensure controls are in place for patients to be charged in accordance with the SFDS and that income verifications are performed at least annually. Condition: Patients received a sliding fee discount that was inconsistent with the stated sliding fee discount categories under the Organization’s policy. Context: A sample of 40 patients were tested out of the total population of 999 encounters. The sampling methodology used is not and is not intended to be statistically valid. 19 patients received a sliding fee adjustment that was inconsistent with the approved policy for the proper sliding fee adjustments based on their income documentation and the organization did not have income documentation for 4 patients that received a sliding fee adjustment. Effect: Sliding fee discounts were given to patients that were inconsistent with the Organization’s sliding fee discount policy. Cause: The Organization did not comply with their sliding fee policy. Based on audit procedures performed, the income verification process was applied properly or there was lack of documentation to verify it was applied properly and therefore, patients were not charged the correct amount for the services provided. Questioned costs: None Repeat Finding: Is not a repeat finding. Recommendations: We recommend management continue to ensure all personnel understand the sliding fee scale policy and adhere to the requirements and guidelines set forth in the policy. Procedures should be implemented to ensure that eligible patients receive discounts in accordance with the sliding fee scale and the Organization’s Policy Compliance Manual.
Finding 2024-001
Finding 2024-001 – Special Tests and Provisions: Sliding Fee Determination and Related Patient Billing U.S. Department of Health and Human Services Assistance Listing Number 93.224 / 93.527, Health Center Program Cluster Criteria: Special Tests and Provisions: Sliding Fee Discounts. All section 330-funded health centers must prepare and apply a sliding fee discount schedule (SFDS), which adjust amount owed for health center services by eligible patients based on the patient’s ability to pay. Management is responsible to ensure controls are in place for patients to be charged in accordance with the SFDS and that income verifications are performed at least annually. Condition: Patients received a sliding fee discount that was inconsistent with the stated sliding fee discount categories under the Organization’s policy. Context: A sample of 40 patients were tested out of the total population of 999 encounters. The sampling methodology used is not and is not intended to be statistically valid. 19 patients received a sliding fee adjustment that was inconsistent with the approved policy for the proper sliding fee adjustments based on their income documentation and the organization did not have income documentation for 4 patients that received a sliding fee adjustment. Effect: Sliding fee discounts were given to patients that were inconsistent with the Organization’s sliding fee discount policy. Cause: The Organization did not comply with their sliding fee policy. Based on audit procedures performed, the income verification process was applied properly or there was lack of documentation to verify it was applied properly and therefore, patients were not charged the correct amount for the services provided. Questioned costs: None Repeat Finding: Is not a repeat finding. Recommendations: We recommend management continue to ensure all personnel understand the sliding fee scale policy and adhere to the requirements and guidelines set forth in the policy. Procedures should be implemented to ensure that eligible patients receive discounts in accordance with the sliding fee scale and the Organization’s Policy Compliance Manual.
Finding 2024-001
Finding 2024-001 – Special Tests and Provisions: Sliding Fee Determination and Related Patient Billing U.S. Department of Health and Human Services Assistance Listing Number 93.224 / 93.527, Health Center Program Cluster Criteria: Special Tests and Provisions: Sliding Fee Discounts. All section 330-funded health centers must prepare and apply a sliding fee discount schedule (SFDS), which adjust amount owed for health center services by eligible patients based on the patient’s ability to pay. Management is responsible to ensure controls are in place for patients to be charged in accordance with the SFDS and that income verifications are performed at least annually. Condition: Patients received a sliding fee discount that was inconsistent with the stated sliding fee discount categories under the Organization’s policy. Context: A sample of 40 patients were tested out of the total population of 999 encounters. The sampling methodology used is not and is not intended to be statistically valid. 19 patients received a sliding fee adjustment that was inconsistent with the approved policy for the proper sliding fee adjustments based on their income documentation and the organization did not have income documentation for 4 patients that received a sliding fee adjustment. Effect: Sliding fee discounts were given to patients that were inconsistent with the Organization’s sliding fee discount policy. Cause: The Organization did not comply with their sliding fee policy. Based on audit procedures performed, the income verification process was applied properly or there was lack of documentation to verify it was applied properly and therefore, patients were not charged the correct amount for the services provided. Questioned costs: None Repeat Finding: Is not a repeat finding. Recommendations: We recommend management continue to ensure all personnel understand the sliding fee scale policy and adhere to the requirements and guidelines set forth in the policy. Procedures should be implemented to ensure that eligible patients receive discounts in accordance with the sliding fee scale and the Organization’s Policy Compliance Manual.
Finding 2024-001
Finding 2024-001 – Special Tests and Provisions: Sliding Fee Determination and Related Patient Billing U.S. Department of Health and Human Services Assistance Listing Number 93.224 / 93.527, Health Center Program Cluster Criteria: Special Tests and Provisions: Sliding Fee Discounts. All section 330-funded health centers must prepare and apply a sliding fee discount schedule (SFDS), which adjust amount owed for health center services by eligible patients based on the patient’s ability to pay. Management is responsible to ensure controls are in place for patients to be charged in accordance with the SFDS and that income verifications are performed at least annually. Condition: Patients received a sliding fee discount that was inconsistent with the stated sliding fee discount categories under the Organization’s policy. Context: A sample of 40 patients were tested out of the total population of 999 encounters. The sampling methodology used is not and is not intended to be statistically valid. 19 patients received a sliding fee adjustment that was inconsistent with the approved policy for the proper sliding fee adjustments based on their income documentation and the organization did not have income documentation for 4 patients that received a sliding fee adjustment. Effect: Sliding fee discounts were given to patients that were inconsistent with the Organization’s sliding fee discount policy. Cause: The Organization did not comply with their sliding fee policy. Based on audit procedures performed, the income verification process was applied properly or there was lack of documentation to verify it was applied properly and therefore, patients were not charged the correct amount for the services provided. Questioned costs: None Repeat Finding: Is not a repeat finding. Recommendations: We recommend management continue to ensure all personnel understand the sliding fee scale policy and adhere to the requirements and guidelines set forth in the policy. Procedures should be implemented to ensure that eligible patients receive discounts in accordance with the sliding fee scale and the Organization’s Policy Compliance Manual.
Finding 2024-001
Finding 2024-001 – Special Tests and Provisions: Sliding Fee Determination and Related Patient Billing U.S. Department of Health and Human Services Assistance Listing Number 93.224 / 93.527, Health Center Program Cluster Criteria: Special Tests and Provisions: Sliding Fee Discounts. All section 330-funded health centers must prepare and apply a sliding fee discount schedule (SFDS), which adjust amount owed for health center services by eligible patients based on the patient’s ability to pay. Management is responsible to ensure controls are in place for patients to be charged in accordance with the SFDS and that income verifications are performed at least annually. Condition: Patients received a sliding fee discount that was inconsistent with the stated sliding fee discount categories under the Organization’s policy. Context: A sample of 40 patients were tested out of the total population of 999 encounters. The sampling methodology used is not and is not intended to be statistically valid. 19 patients received a sliding fee adjustment that was inconsistent with the approved policy for the proper sliding fee adjustments based on their income documentation and the organization did not have income documentation for 4 patients that received a sliding fee adjustment. Effect: Sliding fee discounts were given to patients that were inconsistent with the Organization’s sliding fee discount policy. Cause: The Organization did not comply with their sliding fee policy. Based on audit procedures performed, the income verification process was applied properly or there was lack of documentation to verify it was applied properly and therefore, patients were not charged the correct amount for the services provided. Questioned costs: None Repeat Finding: Is not a repeat finding. Recommendations: We recommend management continue to ensure all personnel understand the sliding fee scale policy and adhere to the requirements and guidelines set forth in the policy. Procedures should be implemented to ensure that eligible patients receive discounts in accordance with the sliding fee scale and the Organization’s Policy Compliance Manual.
Finding 2024-001
Finding 2024-001 – Special Tests and Provisions: Sliding Fee Determination and Related Patient Billing U.S. Department of Health and Human Services Assistance Listing Number 93.224 / 93.527, Health Center Program Cluster Criteria: Special Tests and Provisions: Sliding Fee Discounts. All section 330-funded health centers must prepare and apply a sliding fee discount schedule (SFDS), which adjust amount owed for health center services by eligible patients based on the patient’s ability to pay. Management is responsible to ensure controls are in place for patients to be charged in accordance with the SFDS and that income verifications are performed at least annually. Condition: Patients received a sliding fee discount that was inconsistent with the stated sliding fee discount categories under the Organization’s policy. Context: A sample of 40 patients were tested out of the total population of 999 encounters. The sampling methodology used is not and is not intended to be statistically valid. 19 patients received a sliding fee adjustment that was inconsistent with the approved policy for the proper sliding fee adjustments based on their income documentation and the organization did not have income documentation for 4 patients that received a sliding fee adjustment. Effect: Sliding fee discounts were given to patients that were inconsistent with the Organization’s sliding fee discount policy. Cause: The Organization did not comply with their sliding fee policy. Based on audit procedures performed, the income verification process was applied properly or there was lack of documentation to verify it was applied properly and therefore, patients were not charged the correct amount for the services provided. Questioned costs: None Repeat Finding: Is not a repeat finding. Recommendations: We recommend management continue to ensure all personnel understand the sliding fee scale policy and adhere to the requirements and guidelines set forth in the policy. Procedures should be implemented to ensure that eligible patients receive discounts in accordance with the sliding fee scale and the Organization’s Policy Compliance Manual.
Finding 2024-001
Finding 2024-001 – Special Tests and Provisions: Sliding Fee Determination and Related Patient Billing U.S. Department of Health and Human Services Assistance Listing Number 93.224 / 93.527, Health Center Program Cluster Criteria: Special Tests and Provisions: Sliding Fee Discounts. All section 330-funded health centers must prepare and apply a sliding fee discount schedule (SFDS), which adjust amount owed for health center services by eligible patients based on the patient’s ability to pay. Management is responsible to ensure controls are in place for patients to be charged in accordance with the SFDS and that income verifications are performed at least annually. Condition: Patients received a sliding fee discount that was inconsistent with the stated sliding fee discount categories under the Organization’s policy. Context: A sample of 40 patients were tested out of the total population of 999 encounters. The sampling methodology used is not and is not intended to be statistically valid. 19 patients received a sliding fee adjustment that was inconsistent with the approved policy for the proper sliding fee adjustments based on their income documentation and the organization did not have income documentation for 4 patients that received a sliding fee adjustment. Effect: Sliding fee discounts were given to patients that were inconsistent with the Organization’s sliding fee discount policy. Cause: The Organization did not comply with their sliding fee policy. Based on audit procedures performed, the income verification process was applied properly or there was lack of documentation to verify it was applied properly and therefore, patients were not charged the correct amount for the services provided. Questioned costs: None Repeat Finding: Is not a repeat finding. Recommendations: We recommend management continue to ensure all personnel understand the sliding fee scale policy and adhere to the requirements and guidelines set forth in the policy. Procedures should be implemented to ensure that eligible patients receive discounts in accordance with the sliding fee scale and the Organization’s Policy Compliance Manual.