Audit 36618

FY End
2022-12-31
Total Expended
$25.49M
Findings
2
Programs
21
Year: 2022 Accepted: 2023-09-27
Auditor: Cohreznick LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
29997 2022-001 Significant Deficiency Yes L
606439 2022-001 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $9.00M Yes 0
93.224 Consolidated Health Centers (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $4.14M Yes 0
93.914 Hiv Emergency Relief Project Grants $1.96M - 0
93.498 Covid-19: Provider Relief Fund and American Rescue Plan (arp) Rural Distribution $1.48M Yes 1
93.917 Hiv Care Formula Grants $588,569 - 0
32.006 Covid-19 Telehealth Program $391,829 - 0
93.788 Opioid Str $260,711 - 0
93.354 Public Health Emergency Response: Cooperative Agreement for Emergency Response: Public Health Crisis Response $185,849 - 0
93.959 Block Grants for Prevention and Treatment of Substance Abuse $163,698 - 0
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $129,911 - 0
93.526 Grants for Capital Development in Health Centers $89,561 - 0
93.527 Grants for New and Expanded Services Under the Health Center Program $81,177 Yes 0
93.941 Hiv Demonstration, Research, Public and Professional Education Projects $58,720 - 0
93.421 Strengthening Public Health Systems and Services Through National Partnerships to Improve and Protect the Nations Health $29,508 - 0
93.940 Hiv Prevention Activities_health Department Based $26,674 - 0
93.279 Drug Abuse and Addiction Research Programs $16,721 - 0
93.977 Preventive Health Services_sexually Transmitted Diseases Control Grants $10,347 - 0
93.898 Cancer Prevention and Control Programs for State, Territorial and Tribal Organizations $5,250 - 0
97.024 Emergency Food and Shelter National Board Program $2,220 - 0
93.658 Foster Care_title IV-E $2,138 - 0
93.461 Hrsa Covid-19 Claims Reimbursement for the Uninsured Program and the Covid-19 Coverage Assistance Fund $53 - 0

Contacts

Name Title Type
L1D9DEMSQVS5 Amy Bolognese Auditee
8452203170 Steven D. Schwartz Auditor
No contacts on file

Notes to SEFA

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. The Organization has elected to not use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Cornerstone Family Healthcare and Affiliates (the "Organization") 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 Organization, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Organization.
Title: Nonmonetary assistance 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. The Organization has elected to not use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Nonmonetary assistance is reported in the Schedule at the fair value of the Women, Infants and Children checks received. The total federal share of the food instruments distributed by the Organization amounted to $7,541,140 and is included on the Schedule.
Title: COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distri 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. The Organization has elected to not use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. For the HHS awards related to the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution ("PRF") program, HHS has indicated the amounts on the Schedule be reported corresponding to reporting requirements of the 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 report into the HRSA PRF Reporting Portal after each Period's deadline to use the funds (i.e., after the end of the Period of Availability). The Schedule includes $1,478,962 received from HHS between January 1, 2021 through June 30, 2021. In accordance with guidance from HHS, these amounts are presented as Period 3.Such amounts were recognized as DHHS grant revenue in the consolidated financial statements for the year ended December 31, 2020.
Title: COVID-19 - HRSA COVID-19 Claims Reimbursement for the Uninsured Program and 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. The Organization has elected to not use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. For the DHHS award related to the HRSA COVID-19 Claims Reimbursement for the Uninsured Program and the COVID-19 Coverage Assistance Fund program (the Uninsured/CAF Program), the amount on the Schedule relates to the amount of revenue recognized in the onsolidated financial statements during the year ended December 31, 2022.

Finding Details

Section III - Federal Award Findings and Questioned Costs Item 2022-001 - Reporting U.S. Department of Health and Human Services, COVID-19: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (Federal Assistance Listing Number 93.498) Criteria The Coronavirus Aid, Relief, and Economic Security (CARES) Act and American Rescue Plan (ARP) Act of 2021 appropriated funds to reimburse eligible healthcare providers for healthcare related expenses or lost revenues attributable to COVID-19. These funds were distributed by Health Resources and Services Administration ("HRSA"). HRSA developed the Provider Relief Fund ("PRF") Reporting Portal to enable PRF and ARP Rural recipients to comply with mandatory reporting requirements. Statement of Condition The Organization's submission to the PRF Portal included inconsistencies with the accounting records in order to recognize the PRF funds under the lost revenue option. Questioned Costs None Context There were inconsistencies with the COVID-19 related reporting on the PRF Portal which led to the PRF portal not matching the respective accounting records. It is noted that the Organization had an adequate amount of lost revenue to earn the PRF funding received. Cause Due to turnover in the financial leadership position and due to the constant changes surrounding the guidance for PRF reporting, the Organization misinterpreted the guidance provided by HRSA PRF and ARP program. Effect The Organization did not complete the PRF Reporting Portal properly in accordance with guidance provided by HRSA PRF and ARP program and as a result the data on the report was not correct. Identification as a Repeat Finding Condition is a repeat finding. See finding 2021-003. Recommendation We recommend that the Organization strengthen their system of internal controls to ensure that all reporting is consistent with requirements and instructions as provided by regulatory agencies. Views of Responsible Official Management agrees with the audit finding and will strengthen internal controls and accountability to correct the deficiency.
Section III - Federal Award Findings and Questioned Costs Item 2022-001 - Reporting U.S. Department of Health and Human Services, COVID-19: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (Federal Assistance Listing Number 93.498) Criteria The Coronavirus Aid, Relief, and Economic Security (CARES) Act and American Rescue Plan (ARP) Act of 2021 appropriated funds to reimburse eligible healthcare providers for healthcare related expenses or lost revenues attributable to COVID-19. These funds were distributed by Health Resources and Services Administration ("HRSA"). HRSA developed the Provider Relief Fund ("PRF") Reporting Portal to enable PRF and ARP Rural recipients to comply with mandatory reporting requirements. Statement of Condition The Organization's submission to the PRF Portal included inconsistencies with the accounting records in order to recognize the PRF funds under the lost revenue option. Questioned Costs None Context There were inconsistencies with the COVID-19 related reporting on the PRF Portal which led to the PRF portal not matching the respective accounting records. It is noted that the Organization had an adequate amount of lost revenue to earn the PRF funding received. Cause Due to turnover in the financial leadership position and due to the constant changes surrounding the guidance for PRF reporting, the Organization misinterpreted the guidance provided by HRSA PRF and ARP program. Effect The Organization did not complete the PRF Reporting Portal properly in accordance with guidance provided by HRSA PRF and ARP program and as a result the data on the report was not correct. Identification as a Repeat Finding Condition is a repeat finding. See finding 2021-003. Recommendation We recommend that the Organization strengthen their system of internal controls to ensure that all reporting is consistent with requirements and instructions as provided by regulatory agencies. Views of Responsible Official Management agrees with the audit finding and will strengthen internal controls and accountability to correct the deficiency.