FAC Explorer

Audit 35909

FY End
2022-12-31
Total Expended
$11.83M
Findings
2
Programs
2
Organization: Norwegian Christian Home and Health Center (NY)
Year: 2022 Accepted: 2023-09-27
Auditor: Pkf O'Connor Davies LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
35130 2022-001 Significant Deficiency Yes L
611572 2022-001 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
14.129 Mortgage Insurance_nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities $11.58M Yes 0
93.498 Covid -19 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $245,896 Yes 1

Contacts

Name Title Type
WZCAJ2KS5VK1 Michael Pagano Auditee
7183055621 Yossi Messafi Auditor
No contacts on file

Notes to SEFA

Title: Non-Cash Awards Accounting Policies: Expenditures reported on the Schedule are reported on 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. De Minimis Rate Used: N Rate Explanation: The Home has elected not to use the 10-percent de minimus indirect cost rateallowable under the Uniform Guidance. The Home has a mortgage payable balance outstanding at December 31, 2022. The mortgage balance outstanding at the beginning of the year is included in the federal expenditures presented in the Schedule. The Home received no additional mortgage proceeds during the year. The balance of the mortgage outstanding at December 31, 2022 is $10,234,611.
Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on 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. De Minimis Rate Used: N Rate Explanation: The Home has elected not to use the 10-percent de minimus indirect cost rateallowable under the Uniform Guidance. The Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Norwegian Christian Home and Health Center (the Home) under programs of the federal government for the year ended December 31, 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 Home, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Home.
Title: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Accounting Policies: Expenditures reported on the Schedule are reported on 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. De Minimis Rate Used: N Rate Explanation: The Home has elected not to use the 10-percent de minimus indirect cost rateallowable under the Uniform Guidance. For the awards from the Department of Health and Human Services (HHS) related to the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF) program, HHS has indicated that the amounts on the Schedule should be reported in accordance with the reporting requirements of the Health Resources and Service Administration (HRSA) PRF Reporting Portal. Payments from HHS for PRF are assigned to 'Payment Received Periods' (each, a Period) based upon the date each payment from the PRF was received. Each Period has a specified Period of Availability and timing of reporting requirements. Entities receiving PRF are required to report in the HRSA PRF Reporting Portal after each Period's deadline (i.e., after the end of the Period of Availability). The Schedule includes the Period 3 PRF payment received between January 1, 2021 to June 30, 2021 reported by the Home to HRSA in the PRF Reporting Portal totaling $245,896. The Home recognized PRF revenue for the year ended December 31, 2021 of $245,896 in financial statement line item Provider Relief Fund grant in the accompanying 2021 statement of operations and changes in net assets.
Title: Personal Protective Equipment (PPE) (Unaudited) Accounting Policies: Expenditures reported on the Schedule are reported on 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. De Minimis Rate Used: N Rate Explanation: The Home has elected not to use the 10-percent de minimus indirect cost rateallowable under the Uniform Guidance. The Home did not receive donated PPE from a federal source during the year ended December 31, 2022.

Finding Details

Finding 2022-001
Finding 2022-001 ? Evidence of review of Provider Relief Funds reporting submissions U.S. Department of Health and Human Services Federal Assistance Listing Number/ Name of Federal Program 93.498 COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria or Specific Requirement The responsibility for the preparation and review of the Provider Relief Fund (?PRF?) report should be segregated. In addition, the reviewer of the PRF report should be an employee that is a level above the preparer of the PRF report to ensure that the PRF report is accurate. Condition There is no evidence of review of the PRF reports other than by the preparer. Questioned Costs None Context The lack of review of the PRF reports by an employee other than by the preparer was noted for the Period 3 PRF report. Effect Management was unable to segregate the function of preparer and reviewer for the PRF report. Cause Due to limited staff in the finance department, management was unable to adequately segregate duties for the preparer and reviewer functions of the PRF reporting process. Identification of a repeat finding Yes Recommendation We recommend that management maintains evidence of a review process and ensure that future reporting is prepared by an accounting official and is reviewed by an employee that is a level above the preparer. Views of responsible officials Management will ensure that all future reporting will be prepared by an accounting official and be reviewed by a reviewer who is a level above the preparer. Management will also maintain evidence of the review process.
Finding 2022-001
Finding 2022-001 ? Evidence of review of Provider Relief Funds reporting submissions U.S. Department of Health and Human Services Federal Assistance Listing Number/ Name of Federal Program 93.498 COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Criteria or Specific Requirement The responsibility for the preparation and review of the Provider Relief Fund (?PRF?) report should be segregated. In addition, the reviewer of the PRF report should be an employee that is a level above the preparer of the PRF report to ensure that the PRF report is accurate. Condition There is no evidence of review of the PRF reports other than by the preparer. Questioned Costs None Context The lack of review of the PRF reports by an employee other than by the preparer was noted for the Period 3 PRF report. Effect Management was unable to segregate the function of preparer and reviewer for the PRF report. Cause Due to limited staff in the finance department, management was unable to adequately segregate duties for the preparer and reviewer functions of the PRF reporting process. Identification of a repeat finding Yes Recommendation We recommend that management maintains evidence of a review process and ensure that future reporting is prepared by an accounting official and is reviewed by an employee that is a level above the preparer. Views of responsible officials Management will ensure that all future reporting will be prepared by an accounting official and be reviewed by a reviewer who is a level above the preparer. Management will also maintain evidence of the review process.