FAC Explorer

Audit 38975

FY End
2022-06-30
Total Expended
$2.37M
Findings
2
Programs
4
Organization: Phoebe Devitt Homes (PA)
Year: 2022 Accepted: 2023-03-29
Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
41910 2022-001 Significant Deficiency - AB
618352 2022-001 Significant Deficiency - AB

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $2.04M Yes 1
14.157 Supportive Housing for the Elderly $188,916 - 0
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $73,126 - 0
14.191 Multifamily Housing Service Coordinators $62,640 - 0

Contacts

Name Title Type
LJKZKYJUCM84 Michael Pfleegor Auditee
6107945028 Patrick Heavens Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: 2.Summary of Significant Accounting PoliciesExpenditures 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. Provider Relief Funding and American Rescue Plan (ARP) Rural Distribution - Assistance Listing Number 93.498For the U.S. Department of Health and Human Services (HHS) awards related to the Provider Relief Funding 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 Health Resources and Services 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 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). As it relates to Assistance Listing Number 93.498, Provider Relief Funding and American Rescue Plan (ARP) Rural Distribution (PRF) program, the Schedule for the year ended June 30, 2022 includes expenditures and lost revenues included in the Period 2 and Period 3 PRF Reports submitted for the Organization. The Period 2 PRF Reports include payments received for the period July 1, 2020 to December 31, 2020. The deadline to use these funds was December 31, 2021. The Period 3 PRF Reports include payments received for the period January 1, 2021 to June 30, 2021. The deadline to use these funds was June 30, 2022. The Schedule includes the following entities that received the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution program:Legal Entity NameTax Identification NumberPhoebe Home Inc. 232302675Phoebe Berks Healthcare Center Inc232560952Phoebe Richland Healthcare Center Inc233045622Wyncote Church Home231352525 De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. SUPPORTIVE HOUSING FOR THE ELDERLY (14.157) - Balances outstanding at the end of the audit period were 117713.
Title: Basis of Presentation Accounting Policies: 2.Summary of Significant Accounting PoliciesExpenditures 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. Provider Relief Funding and American Rescue Plan (ARP) Rural Distribution - Assistance Listing Number 93.498For the U.S. Department of Health and Human Services (HHS) awards related to the Provider Relief Funding 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 Health Resources and Services 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 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). As it relates to Assistance Listing Number 93.498, Provider Relief Funding and American Rescue Plan (ARP) Rural Distribution (PRF) program, the Schedule for the year ended June 30, 2022 includes expenditures and lost revenues included in the Period 2 and Period 3 PRF Reports submitted for the Organization. The Period 2 PRF Reports include payments received for the period July 1, 2020 to December 31, 2020. The deadline to use these funds was December 31, 2021. The Period 3 PRF Reports include payments received for the period January 1, 2021 to June 30, 2021. The deadline to use these funds was June 30, 2022. The Schedule includes the following entities that received the Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution program:Legal Entity NameTax Identification NumberPhoebe Home Inc. 232302675Phoebe Berks Healthcare Center Inc232560952Phoebe Richland Healthcare Center Inc233045622Wyncote Church Home231352525 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 Phoebe-Devitt Homes and Affiliated Organizations (the Organization) under programs of the federal government for the year ended June 30, 2022. The Schedule does not include the federal awards of Devitt House, Inc., as they separately issued a standalone schedule of expenditures of federal awards as required by the U.S. Department of Housing and Urban Development. 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 consolidated financial position, changes in net assets or cash flows of the Organization.

Finding Details

Finding 2022-001
2022-001 - Significant Deficiency in Internal Control - Review and Approval of Allowable Costs Federal Program: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number: 93.498 Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: N/A Award Number: N/A Award Year: 2020 and 2021 Compliance Requirement: Allowable Cost/Cost Principles and Activities Allowed or Unallowed Questioned Costs: None noted Criteria: Nonfederal entities in receipt of federal funds must comply with the requirements of 2 CFR 200.303(a), which require an entity to establish and maintain effective internal control over the Federal award to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition and Context: During the testing of expenditures related to increased nurse agency costs and benefits allocation calculations, we observed that for 2 of the 2 calculations tested did not contain a review and approval prior to submission to detect potential errors in the calculations. Effect: The Corporation lacks proper documentation of review with respect to the calculations of increased nurse agency costs and benefits allocations, which could result in errors in these calculations. As a result of the lack of proper documentation of review, noncompliance due to error or fraud could occur without being detected and corrected timely. Cause: The Corporation lacks a formal review policy related to the calculations of increased nurse agency costs and benefits allocations. Recommendation: Management should implement and document a review process for these calculations. View of Responsible Officials: Beginning with reporting period 4, the Organization will begin formally documenting the review of all calculations as part of the submission review process.
Finding 2022-001
2022-001 - Significant Deficiency in Internal Control - Review and Approval of Allowable Costs Federal Program: COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number: 93.498 Federal Agency: U.S. Department of Health and Human Services Pass-Through Agency: N/A Award Number: N/A Award Year: 2020 and 2021 Compliance Requirement: Allowable Cost/Cost Principles and Activities Allowed or Unallowed Questioned Costs: None noted Criteria: Nonfederal entities in receipt of federal funds must comply with the requirements of 2 CFR 200.303(a), which require an entity to establish and maintain effective internal control over the Federal award to ensure compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Condition and Context: During the testing of expenditures related to increased nurse agency costs and benefits allocation calculations, we observed that for 2 of the 2 calculations tested did not contain a review and approval prior to submission to detect potential errors in the calculations. Effect: The Corporation lacks proper documentation of review with respect to the calculations of increased nurse agency costs and benefits allocations, which could result in errors in these calculations. As a result of the lack of proper documentation of review, noncompliance due to error or fraud could occur without being detected and corrected timely. Cause: The Corporation lacks a formal review policy related to the calculations of increased nurse agency costs and benefits allocations. Recommendation: Management should implement and document a review process for these calculations. View of Responsible Officials: Beginning with reporting period 4, the Organization will begin formally documenting the review of all calculations as part of the submission review process.