FAC Explorer

Audit 352433

FY End
2021-12-31
Total Expended
$14.83M
Findings
4
Programs
5
Organization: Niagara Area Management Corporation (NY)
Year: 2021 Accepted: 2025-04-02
Auditor: Lumsden & McCormick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
553801 2021-001 Significant Deficiency - L
553802 2021-002 - - P
1130243 2021-001 Significant Deficiency - L
1130244 2021-002 - - P

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $14.22M Yes 2
16.575 Crime Victim Assistance $258,739 - 0
93.332 Cooperative Agreement to Support Navigators in Federally-Facilitated Exchanges $212,636 - 0
93.778 Medical Assistance Program $127,422 - 0
10.558 Child and Adult Care Food Program $14,191 - 0

Contacts

Name Title Type
VJBRXARQ79N5 Matthew T. Dubois Auditee
7162784399 Jill Johnson Auditor
No contacts on file

Notes to SEFA

Title: 1. Summary of Significant Accounting Policies Accounting Policies: Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award programs administered by Niagara Area Management Corporation (NAMC), an entity as defined in Note 1 to the NAMC’s financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other governmental agencies, are included on the SEFA. Basis of Accounting The NAMC uses the accrual basis of accounting for each federal program, consistent with the financial statements. The amounts reported as federal expenditures generally were obtained from the appropriate federal financial reports for the applicable programs and periods. The amounts reported in these federal financial reports are prepared from records maintained for each program, which are periodically reconciled with the NAMC’s financial reporting system. Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution – Assistance Listing Number 93.498 For U.S. Department of Health and Human Services (HHS) awards related to the Provider Relief Fund and ARP Rural Distribution (PRF) program, HHS has indicated amounts on the SEFA be reported corresponding to reporting requirements of Health Resources and Services Administration (HRSA) PRF Reporting Portal. Payments from HHS for PRF are assigned to “Payment Received Periods” based upon the date each payment from PRF was received. Each period has a specified Period of Availability and timing of reporting requirements. Entities report on the HRSA PRF Reporting Portal after each period’s deadline to use the funds. The SEFA includes $14,218,670 received from HHS from April 10, 2020 through June 30, 2020 and were presented in accordance with guidance from HHS in Period 1. No amounts were received or reported between July 1, 2020 and December 31, 2020 in Period 2. Such amounts were recognized as grant income in the Hospital’s financial statements for the year ended December 31, 2020. Due to PRF reporting requirements, these amounts are not the total PRF received and/or recognized as grant income in the year presented on the SEFA. Indirect Costs The NAMC has not elected to use the 10% de minimis indirect cost rate allowed by the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Indirect Costs The NAMC has not elected to use the 10% de minimis indirect cost rate allowed by the Uniform Guidance. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards (SEFA) presents the activity of all federal award programs administered by Niagara Area Management Corporation (NAMC), an entity as defined in Note 1 to the NAMC’s financial statements. Federal awards received directly from federal agencies, as well as federal awards passed through from other governmental agencies, are included on the SEFA. Basis of Accounting The NAMC uses the accrual basis of accounting for each federal program, consistent with the financial statements. The amounts reported as federal expenditures generally were obtained from the appropriate federal financial reports for the applicable programs and periods. The amounts reported in these federal financial reports are prepared from records maintained for each program, which are periodically reconciled with the NAMC’s financial reporting system. Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution – Assistance Listing Number 93.498 For U.S. Department of Health and Human Services (HHS) awards related to the Provider Relief Fund and ARP Rural Distribution (PRF) program, HHS has indicated amounts on the SEFA be reported corresponding to reporting requirements of Health Resources and Services Administration (HRSA) PRF Reporting Portal. Payments from HHS for PRF are assigned to “Payment Received Periods” based upon the date each payment from PRF was received. Each period has a specified Period of Availability and timing of reporting requirements. Entities report on the HRSA PRF Reporting Portal after each period’s deadline to use the funds. The SEFA includes $14,218,670 received from HHS from April 10, 2020 through June 30, 2020 and were presented in accordance with guidance from HHS in Period 1. No amounts were received or reported between July 1, 2020 and December 31, 2020 in Period 2. Such amounts were recognized as grant income in the Hospital’s financial statements for the year ended December 31, 2020. Due to PRF reporting requirements, these amounts are not the total PRF received and/or recognized as grant income in the year presented on the SEFA. Indirect Costs The NAMC has not elected to use the 10% de minimis indirect cost rate allowed by the Uniform Guidance.

Finding Details

Finding 2021-001
Criteria: NAMC should have sufficient internal control over Health Resources and Services Administration (HRSA) PRF Portal reporting. Condition: Documentation was not maintained to support the HRSA PRF Portal reported expenditures and there was not evidence of review and approval of the HRSA PRF Portal submission. Cause: All supporting documentation was not maintained in line with retention requirements and evidence of review and approval was not documented. Effect: HRSA PRF Portal reporting may be inaccurate. Questioned Costs: None Auditors’ Recommendation: We recommend management retain supporting documentation in line with retention requirements and maintain evidence of review and approval of HRSA PRF Portal reporting. Views of Responsible Officials: Management agrees with the recommendation and will retain supporting documentation in line with retention requirements maintain evidence of review and approval on future HRSA PRF Portal reporting submissions.
Finding 2021-002
Criteria: 2 CFR requires a non-federal entity that expends $750,000 or more in federal awards during its fiscal year must undergo an 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 (Uniform Guidance) and submit their audited annual financial reports and the data collection form to the Federal Audit Clearinghouse within thirty (30) days after receipt of the auditors’ report, or nine (9) months of the close of the auditee's fiscal year. Condition: NAMC did not undergo the annual audit requirement in accordance with the Uniform Guidance and submit the annual audited financial statements and the data collection form to the Federal Audit Clearinghouse within 9 months after year-end as required by the Uniform Guidance. Cause: Due to turnover in key finance positions, NAMC did not undergo the required audit. Effect: NAMC is not in compliance with applicable federal regulations. Questioned Costs: None Auditors’ Recommendation: NAMC should implement policies and procedures to ensure compliance with all audit requirements and timely filing of required reports. Views of Responsible Officials: NAMC has appropriately staffed the open finance department roles and completed its 2021 audit and reporting requirements as of December 2024.
Finding 2021-001
Criteria: NAMC should have sufficient internal control over Health Resources and Services Administration (HRSA) PRF Portal reporting. Condition: Documentation was not maintained to support the HRSA PRF Portal reported expenditures and there was not evidence of review and approval of the HRSA PRF Portal submission. Cause: All supporting documentation was not maintained in line with retention requirements and evidence of review and approval was not documented. Effect: HRSA PRF Portal reporting may be inaccurate. Questioned Costs: None Auditors’ Recommendation: We recommend management retain supporting documentation in line with retention requirements and maintain evidence of review and approval of HRSA PRF Portal reporting. Views of Responsible Officials: Management agrees with the recommendation and will retain supporting documentation in line with retention requirements maintain evidence of review and approval on future HRSA PRF Portal reporting submissions.
Finding 2021-002
Criteria: 2 CFR requires a non-federal entity that expends $750,000 or more in federal awards during its fiscal year must undergo an 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 (Uniform Guidance) and submit their audited annual financial reports and the data collection form to the Federal Audit Clearinghouse within thirty (30) days after receipt of the auditors’ report, or nine (9) months of the close of the auditee's fiscal year. Condition: NAMC did not undergo the annual audit requirement in accordance with the Uniform Guidance and submit the annual audited financial statements and the data collection form to the Federal Audit Clearinghouse within 9 months after year-end as required by the Uniform Guidance. Cause: Due to turnover in key finance positions, NAMC did not undergo the required audit. Effect: NAMC is not in compliance with applicable federal regulations. Questioned Costs: None Auditors’ Recommendation: NAMC should implement policies and procedures to ensure compliance with all audit requirements and timely filing of required reports. Views of Responsible Officials: NAMC has appropriately staffed the open finance department roles and completed its 2021 audit and reporting requirements as of December 2024.