Audit 364788

FY End

2023-12-31

Total Expended

$932,634

Findings

2

Programs

1

Organization: Pinecrest Medical Care Facility (MI)

Year: 2023 Accepted: 2025-08-22

Auditor: Plante & Moran PLLC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
574457	2023-003	Material Weakness	-	L
1150899	2023-003	Material Weakness	-	L

ALN	Program	Spent	Major	Findings
93.498	Covid-19 - Provider Relief Fund and American Rescue Plan (arp) Rural Distribution	$932,634	Yes	1

Contacts

Name	Title	Type
EE39N21LR7L3	Brooke Ponchaud	Auditee
9064972113	Nick Maeder	Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal grant activity of Pinecrest Medical Care Facility (the “Facility”) 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 (the “Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the Facility, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Facility. Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures do not apply the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, but rather applies the U.S. Department of Health and Human Services (HSS) guidance (ALN 93.498, Provider Relief Fund) and frequently asked questions, as outlined in the 2020 Compliance Supplement. For the PRF program, HHS has indicated that the amounts on the Schedule should be reported in correspondence with reporting requirements of the HHS PRF Reporting Portal. Payments from HHS for PRF are assigned a payment received period based on the date each PRF payment was received. Each period has a specified period of availability and timing of reporting requirements. The Facility has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Facility has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance.

Finding Details

Finding 2023-003

Assistance Listing Number, Federal Agency, and Program Name 93.498; U.S. Department of Health and Human Services; COVID 19: Provider Relief Fund and American Rescue Plan Rural Distribution Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria The 2 CRF Section 200.303 requires that nonfederal entities receiving federal awards establish, document, and maintain effective internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition The Facility does not have a review process in place related to the lost revenue calculation input into the required reporting submissions to the U.S. Department of Health and Human Services for the Provider Relief Fund program. The Facility also did not have a review process in place for the required submissions. Questioned Costs None Context During control testing of reporting (sample size of one), there was no independent review completed on the lost revenue calculation or the reporting submission to evaluate the completeness and accuracy of the submission. Cause and Effect The lack of an independent review of the lost revenue calculation and the reporting submission could result in an increased risk of incomplete or inaccurate information included in the reporting submission. Recommendation The Facility should implement a process to ensure an independent review of the reporting submission and the documents used to input information into the reporting submission, such as the lost revenue calculation, is completed prior to finalization. Views of Responsible Officials and Corrective Action Plan Management agrees with the finding and will implement a process to ensure an independent review of the reporting submission and its supporting documents is completed prior to finalization.

Finding 2023-003

Assistance Listing Number, Federal Agency, and Program Name 93.498; U.S. Department of Health and Human Services; COVID 19: Provider Relief Fund and American Rescue Plan Rural Distribution Pass through Entity N/A Finding Type Material weakness Repeat Finding No Criteria The 2 CRF Section 200.303 requires that nonfederal entities receiving federal awards establish, document, and maintain effective internal control over the federal awards that provides reasonable assurance that the nonfederal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition The Facility does not have a review process in place related to the lost revenue calculation input into the required reporting submissions to the U.S. Department of Health and Human Services for the Provider Relief Fund program. The Facility also did not have a review process in place for the required submissions. Questioned Costs None Context During control testing of reporting (sample size of one), there was no independent review completed on the lost revenue calculation or the reporting submission to evaluate the completeness and accuracy of the submission. Cause and Effect The lack of an independent review of the lost revenue calculation and the reporting submission could result in an increased risk of incomplete or inaccurate information included in the reporting submission. Recommendation The Facility should implement a process to ensure an independent review of the reporting submission and the documents used to input information into the reporting submission, such as the lost revenue calculation, is completed prior to finalization. Views of Responsible Officials and Corrective Action Plan Management agrees with the finding and will implement a process to ensure an independent review of the reporting submission and its supporting documents is completed prior to finalization.