Audit 337410

FY End

2020-06-30

Total Expended

$3.23M

Findings

2

Programs

3

Organization: Horizon Healthcare Partners (RI)

Year: 2020 Accepted: 2025-01-13

Auditor: Allan Smith & Company CPAS PC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
518969	2019-001	Significant Deficiency	Yes	L
1095411	2019-001	Significant Deficiency	Yes	L

ALN	Program	Spent	Major	Findings
93.788	Opioid Str	$1.61M	Yes	1
93.959	Block Grants for Prevention and Treatment of Substance Abuse	$1.04M	-	0
93.958	Block Grants for Community Mental Health Services	$576,251	-	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. See the Notes to the SEFA for chart/table

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, 2020.

Finding Details

Finding 2019-001

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 45 CFR 75 Subpart F, 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 45 CFR 75 Subpart F 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 45 CFR 75 Subpart F.

Finding 2019-001

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 45 CFR 75 Subpart F, 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 45 CFR 75 Subpart F 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 45 CFR 75 Subpart F.