FAC Explorer

Audit 34216

FY End
2022-06-30
Total Expended
$14.13M
Findings
4
Programs
1
Organization: Vetter Senior Living (NE)
Year: 2022 Accepted: 2023-05-30
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
36756 2022-002 Significant Deficiency - A
36757 2022-003 Significant Deficiency - L
613198 2022-002 Significant Deficiency - A
613199 2022-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $14.13M Yes 2

Contacts

Name Title Type
FSDHXLM4DAC1 Brian Stuhr Auditee
4028856221 Jeremy Behrens Auditor
No contacts on file

Notes to SEFA

Title: Note 4: Provider Relief Funds Accounting Policies: Note 1:Basis of Presentation - The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Company under programs of the federal government for the year ended June 30, 2022. 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 Company, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Company.Note 2:Summary of Significant Accounting - Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. No federal assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Company has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Company received amounts from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund (PRF) program (Federal Financial Assistance Listing/CFDA #93.498) during the payment period received of July 1, 2020 to June 30, 2021. The incurred eligible expenditures and, therefore, recognized revenue totaling $10,138,143 for the year ended June 30, 2022 in the financial statements. In accordance with the compliance supplement addendum, the PRF expenditures recognized on the schedule are based on the reporting to HHS for the period ending through June 30, 2022, as required under the PRF program. The amount of PRF expenditures included on the schedule requires management to make estimates and assumptions that affect the reported amounts. Accordingly, such expenditures are considered a significant estimate. Estimates and assumptions may include reducing actual expenses by amounts that have been reimbursed or are obligated to be reimbursed by other sources. Actual results could differ from those estimates.
Title: Note 5: Principles of Consolidation Accounting Policies: Note 1:Basis of Presentation - The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Company under programs of the federal government for the year ended June 30, 2022. 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 Company, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Company.Note 2:Summary of Significant Accounting - Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entity identifying numbers are presented where available. No federal assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Company has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The consolidated schedule of expenditures of federal awards includes the federal grant activity of Vetter Senior Living and is consolidated subsidiaries which received federal financial assistance. Significant intercompany balances and transactions have been eliminated in the consolidated schedule of expenditures of federal awards. The following entities and their associated TIN numbers are included within the Schedule as follows:300963042 VSL Alliance LLC 384024654 VSL Lake City LLC364855688 VSL Broken Bow LLC 352583045 VSL Lincoln Southlake LLC300964463 VSL Columbus LLC 300964875 VSL Lincoln Sumner LLC611811905 VSL David City LLC 352583738 VSL Loup City LLC352581723 VSL Elkhorn LLC 300965494 VSL Norfolk LLC611812157 VSL Emerson LLC 352583599 VSL North Platte Court LLC611812442 VSL Fairbury LLC 371848338 VSL Omaha LLC384023801 VSL Garnett, LLC 364858444 VSL Papillion LLC611812645 VSL Geneva LLC 611815663 VSL Red Cloud611817126 VSL Gering LLC 320518584 VSL Seward LLC320515898 VSL Grand Island LLC 611815992 VSL Springfield Manor LLC384024243 VSL Hooper LLC 364859287 VSL St. Edward LLC300965237 VSL Iowa Falls LLC 611815917 VSL St. Paul LLC371849431 VSL Kearney LLC 371849602 VSL Wahoo LLC

Finding Details

Finding 2022-002
Federal Program: CFDA #93.498 US Department of Health and Human Services Provider Relief Fund and American Rescue Plan (ARP) Distribution Criteria: The terms and conditions of the CARES Act Provider Relief Fund (PRF) distributions state that general funds are to only be used to prevent, prepare for and respond to coronavirus, and that funds may only be used for healthcare related expenses or lost revenue that is attributable to the coronavirus. Funds received for infection control were more restrictive in nature and could only be used for testing and reporting costs, additional patient care personnel, or expense incurred to improve infection control. Condition: During the process of testing claimed pandemic related healthcare expenses, it was noted that employee benefits were incorrectly assigned to contract labor. Cause: Due to the amount of detailed information that was required to be compiled by management in order to enter data into the PRF reporting portal, management had a formula error in its employee benefit calculation. Effect: Management included amounts in the PRF reporting portal which were not eligible based on the terms and conditions of the PRF distributions and subsequent HRSA guidance. Management also reported unreimbursed expenses within the PRF reporting portal which were used to replace the amount of employee benefits assigned to contract labor. Questioned Costs: None. Recommendation: We recommend that management continue to monitor and enhance its internal controls over federal award compliance to ensure that only eligible costs are included in amounts expended. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding summarized above.
Finding 2022-003
Federal Program: CFDA #93.498 US Department of Health and Human Services Provider Relief Fund and American Rescue Plan (ARP) Distribution Criteria: The terms and conditions of the CARES Act Provider Relief Fund (PRF) distributions state that funds are to only be used to prevent, prepare for and respond to coronavirus, and that the recipient will not use funds to reimburse expenses that have been reimbursed from other sources. Condition: During the process of testing the amounts reported in the PRF reporting portal, it was noted that expenses were not reduced by certain other funds received by the Company. Cause: Due to the amount of detailed information that was required to be compiled by management in order to enter data into the PRF reporting portal, management had a formula error in its netting of eligible expenses. Effect: Management included previously reimbursed expenses within the unreimbursed expense section of the PRF reporting portal. Questioned Costs: None. Recommendation: We recommend that management continue to monitor and enhance its internal controls over federal award compliance to ensure that reported expenses are reduced by amounts reimbursed from other sources. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding summarized above.
Finding 2022-002
Federal Program: CFDA #93.498 US Department of Health and Human Services Provider Relief Fund and American Rescue Plan (ARP) Distribution Criteria: The terms and conditions of the CARES Act Provider Relief Fund (PRF) distributions state that general funds are to only be used to prevent, prepare for and respond to coronavirus, and that funds may only be used for healthcare related expenses or lost revenue that is attributable to the coronavirus. Funds received for infection control were more restrictive in nature and could only be used for testing and reporting costs, additional patient care personnel, or expense incurred to improve infection control. Condition: During the process of testing claimed pandemic related healthcare expenses, it was noted that employee benefits were incorrectly assigned to contract labor. Cause: Due to the amount of detailed information that was required to be compiled by management in order to enter data into the PRF reporting portal, management had a formula error in its employee benefit calculation. Effect: Management included amounts in the PRF reporting portal which were not eligible based on the terms and conditions of the PRF distributions and subsequent HRSA guidance. Management also reported unreimbursed expenses within the PRF reporting portal which were used to replace the amount of employee benefits assigned to contract labor. Questioned Costs: None. Recommendation: We recommend that management continue to monitor and enhance its internal controls over federal award compliance to ensure that only eligible costs are included in amounts expended. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding summarized above.
Finding 2022-003
Federal Program: CFDA #93.498 US Department of Health and Human Services Provider Relief Fund and American Rescue Plan (ARP) Distribution Criteria: The terms and conditions of the CARES Act Provider Relief Fund (PRF) distributions state that funds are to only be used to prevent, prepare for and respond to coronavirus, and that the recipient will not use funds to reimburse expenses that have been reimbursed from other sources. Condition: During the process of testing the amounts reported in the PRF reporting portal, it was noted that expenses were not reduced by certain other funds received by the Company. Cause: Due to the amount of detailed information that was required to be compiled by management in order to enter data into the PRF reporting portal, management had a formula error in its netting of eligible expenses. Effect: Management included previously reimbursed expenses within the unreimbursed expense section of the PRF reporting portal. Questioned Costs: None. Recommendation: We recommend that management continue to monitor and enhance its internal controls over federal award compliance to ensure that reported expenses are reduced by amounts reimbursed from other sources. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding summarized above.