FAC Explorer

Audit 369288

FY End
2024-12-31
Total Expended
$3.16M
Findings
4
Programs
4
Organization: Shalom Health Care Center, Inc. (IN)
Year: 2024 Accepted: 2025-09-30
Auditor: Barnes Dennig & CO LTD

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1156979 2024-002 Material Weakness Yes A
1156980 2024-002 Material Weakness Yes A
1156981 2024-002 Material Weakness Yes A
1156982 2024-002 Material Weakness Yes A

Programs

ALN Program Spent Major Findings
93.224 Health Center Program (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $333,660 Yes 1
93.242 Mental Health Research Grants $74,430 Yes 0
93.940 Hiv Prevention Activities Health Department Based $67,839 Yes 0
93.527 Grants for New and Expanded Services Under the Health Center Program $51,231 Yes 1

Contacts

Name Title Type
KHFLGQQEMLF5 Michael A Nino Auditee
3172697198 Amanda Meko Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Shalom Health Care Center, Inc (the Center). and is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements.
Expenditures reported on the Schedule Expenditures of Federal Awards 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 Center has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.

Finding Details

Finding 2024-002
Finding 2024-002, Material Weakness, Allowable Costs Identification of federal program: U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 93.224 and 93.527 Health Center Program Cluster Criteria: 2 CFR 200.430(i) requires the auditee to establish and maintain effective internal control over the allocation of personnel expenses whereby charges to Federal awards for personnel-related expenditures are supported by official records of the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Budget estimates alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that: The non-federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a Federal award based on budget estimates. All necessary adjustment must be made such that the final amount charged to the Federal award is accurate, allowable and properly allocated. Condition: Payroll expenses were charged to the award based on budget estimates. Cause: The Organization uses a spreadsheet, prepared annually, to document the allocation of personnel costs charged across federal and other awards and indirect cost centers. Time and effort reports were not maintained or reviewed to support the allocation of personnel costs. Effect: The Organization was unable to provide documentation of time and effort for personnel who were not 100% charged to the federal award. Questioned costs: None. Context: Total compensation charged to federal awards was tested for 11 out of 92 total employees charged to federal awards. 7 of the 9 employees tested were charged to multiple cost centers. Employees tested were not charged in excess of their compensation. However, there was no documentation of how the allocations were determined beyond budget estimates. Total personnel costs allocated to the Health Center Cluster were $2,887,641. Repeat finding: 2023-004 Recommendation: We recommend that the Organization implement periodic time and effort reports to track employee allocations among federal awards, non-federal awards and indirect cost centers. We recommend that time and effort reports be reviewed by employee supervisors to ensure employee allocations are reflective of actual work performed and payroll allocation changes are made timely to reflect changes in employee duties. All necessary adjustments should be made to financial records to reflect the final amount charged to the Federal award reflects actual work performed. Views of responsible officials and planned corrective actions: See attached corrective action plan.