Audit 359678

FY End
2023-12-31
Total Expended
$4.84M
Findings
4
Programs
7
Year: 2023 Accepted: 2025-06-24

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
566032 2023-001 Material Weakness - L
566033 2023-001 Material Weakness - L
1142474 2023-001 Material Weakness - L
1142475 2023-001 Material Weakness - L

Contacts

Name Title Type
JKL6PFR6MYK7 John Ruffolo Auditee
7168312700 Andrew Reading Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: Except for the Provider Relief Fund (CFDA 93.498), 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. In accordance with guidance provided by the U.S. Department of Health and Human Services (DHHS), grants under the Provider Relief Fund are recognized in the Schedule based on the applicable Period, as defined. Accordingly, the Schedule for the year ended December 31, 2023 includes $64,164 of Period 5 Provider Relief Fund and American Rescue Plan Rural payments. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of The Horizon Corporations (the Companies) under programs of the Federal government for the year ended December 31, 2023. The information in the 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 Companies, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Companies.
Title: Note 2. Summary of Significant Accounting Policies Accounting Policies: Except for the Provider Relief Fund (CFDA 93.498), 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. In accordance with guidance provided by the U.S. Department of Health and Human Services (DHHS), grants under the Provider Relief Fund are recognized in the Schedule based on the applicable Period, as defined. Accordingly, the Schedule for the year ended December 31, 2023 includes $64,164 of Period 5 Provider Relief Fund and American Rescue Plan Rural payments. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Except for the Provider Relief Fund (CFDA 93.498), 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. In accordance with guidance provided by the U.S. Department of Health and Human Services (DHHS), grants under the Provider Relief Fund are recognized in the Schedule based on the applicable Period, as defined. Accordingly, the Schedule for the year ended December 31, 2023 includes $64,164 of Period 5 Provider Relief Fund and American Rescue Plan Rural payments.
Title: Note 3. Indirect Cost Rate Accounting Policies: Except for the Provider Relief Fund (CFDA 93.498), 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. In accordance with guidance provided by the U.S. Department of Health and Human Services (DHHS), grants under the Provider Relief Fund are recognized in the Schedule based on the applicable Period, as defined. Accordingly, the Schedule for the year ended December 31, 2023 includes $64,164 of Period 5 Provider Relief Fund and American Rescue Plan Rural payments. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The Companies have elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: Note 4. Restatement of Schedule of Expenditures of Federal Awards Accounting Policies: Except for the Provider Relief Fund (CFDA 93.498), 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. In accordance with guidance provided by the U.S. Department of Health and Human Services (DHHS), grants under the Provider Relief Fund are recognized in the Schedule based on the applicable Period, as defined. Accordingly, the Schedule for the year ended December 31, 2023 includes $64,164 of Period 5 Provider Relief Fund and American Rescue Plan Rural payments. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. Subsequent to the original issuance of the combined financial statements and related schedule of expenditures of federal awards (the Schedule) on May 22, 2024, management determined that $1,224,086 of expenditures were inadvertently omitted from the program Block Grant for Prevention and Treatment of Substance Abuse (CFDA 93.959) passed through the New York State Office of Addiction Services and Support. The Schedule has been restated to include the previously omitted expenditures.

Finding Details

Criteria: Under Uniform Guidance, auditees are required to submit a Schedule of Expenditures of Federal Awards that include all federal monies expended during the fiscal year. Condition: The Schedule of Expenditures of Federal Awards for 2023 did not include $1,224,086 of federal award expenditures. Context: After the issuance of the combined financial statements and related schedule of expenditures of federal awards for the year ended December 31, 2023, management discovered that certain expenditures were omitted from the Schedule of Expenditures of Federal Awards. Cause: The Companies’ internal control over review of the Schedule failed to detect the omitted awards. Effect: Reporting of expenditures over federal awards was not complete. Recommendation: The Companies should enhance their internal controls over intake and tracking of grants, including identification as federal awards, to produce a complete and accurate Schedule of Expenditures of Federal Awards. Views of Responsible Official: See management’s Corrective Action Plan on page 35.
Criteria: Under Uniform Guidance, auditees are required to submit a Schedule of Expenditures of Federal Awards that include all federal monies expended during the fiscal year. Condition: The Schedule of Expenditures of Federal Awards for 2023 did not include $1,224,086 of federal award expenditures. Context: After the issuance of the combined financial statements and related schedule of expenditures of federal awards for the year ended December 31, 2023, management discovered that certain expenditures were omitted from the Schedule of Expenditures of Federal Awards. Cause: The Companies’ internal control over review of the Schedule failed to detect the omitted awards. Effect: Reporting of expenditures over federal awards was not complete. Recommendation: The Companies should enhance their internal controls over intake and tracking of grants, including identification as federal awards, to produce a complete and accurate Schedule of Expenditures of Federal Awards. Views of Responsible Official: See management’s Corrective Action Plan on page 35.
Criteria: Under Uniform Guidance, auditees are required to submit a Schedule of Expenditures of Federal Awards that include all federal monies expended during the fiscal year. Condition: The Schedule of Expenditures of Federal Awards for 2023 did not include $1,224,086 of federal award expenditures. Context: After the issuance of the combined financial statements and related schedule of expenditures of federal awards for the year ended December 31, 2023, management discovered that certain expenditures were omitted from the Schedule of Expenditures of Federal Awards. Cause: The Companies’ internal control over review of the Schedule failed to detect the omitted awards. Effect: Reporting of expenditures over federal awards was not complete. Recommendation: The Companies should enhance their internal controls over intake and tracking of grants, including identification as federal awards, to produce a complete and accurate Schedule of Expenditures of Federal Awards. Views of Responsible Official: See management’s Corrective Action Plan on page 35.
Criteria: Under Uniform Guidance, auditees are required to submit a Schedule of Expenditures of Federal Awards that include all federal monies expended during the fiscal year. Condition: The Schedule of Expenditures of Federal Awards for 2023 did not include $1,224,086 of federal award expenditures. Context: After the issuance of the combined financial statements and related schedule of expenditures of federal awards for the year ended December 31, 2023, management discovered that certain expenditures were omitted from the Schedule of Expenditures of Federal Awards. Cause: The Companies’ internal control over review of the Schedule failed to detect the omitted awards. Effect: Reporting of expenditures over federal awards was not complete. Recommendation: The Companies should enhance their internal controls over intake and tracking of grants, including identification as federal awards, to produce a complete and accurate Schedule of Expenditures of Federal Awards. Views of Responsible Official: See management’s Corrective Action Plan on page 35.