FAC Explorer

Audit 41826

FY End
2022-06-30
Total Expended
$4.16M
Findings
2
Programs
11
Organization: Communicare, INC (KY)
Year: 2022 Accepted: 2023-01-18
Auditor: Strothman and Company

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
46730 2022-002 Significant Deficiency Yes L
623172 2022-002 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
93.959 Block Grants for Prevention and Treatment of Substance Abuse $1.41M - 0
93.958 Block Grants for Community Mental Health Services $1.05M - 0
93.498 Provider Relief Fund $593,227 Yes 0
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $410,968 Yes 1
93.788 Opioid Str $235,896 - 0
93.997 Assisted Outpatient Treatment $200,000 - 0
93.558 Temporary Assistance for Needy Families $74,906 - 0
14.871 Section 8 Housing Choice Vouchers $56,835 - 0
93.665 Covid - Emergency Grants to Address Mental and Substance Use Disorders During Covid-19 $56,463 - 0
93.104 Comprehensive Community Mental Health Services for Children with Serious Emotional Disturbances (sed) $55,000 - 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $21,275 - 0

Contacts

Name Title Type
HAXCWPLLPKB3 Tiffaney Haynes Auditee
2707652605 Jim Stevison Auditor
No contacts on file

Notes to SEFA

Title: Note A--Basis of Presentation Accounting Policies: Note B--Summary of Significant 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 Uniform Guidance and/or OMB Circular A-122 Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Communicare has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the federal award activity of Communicare, Inc. (Communicare). The information in this Schedule 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Communicare, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Communicare. We have audited the consolidated financial statements of Communicare, Inc. and Affiliates (the Organization) as of and for the year ended June 30, 2022. The Organization consists of ten entities, discussed in Note A to the consolidated financial statements. Our audit of compliance, on pages 31 through 33, only includes the federal grant activity of Communicare, Inc. because the affiliated entities either do not receive or expend federal awards, or they separately report their federal awards, if reporting thresholds are met by any of the affiliates.
Title: Note D--Unreported Federal Awards Accounting Policies: Note B--Summary of Significant 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 Uniform Guidance and/or OMB Circular A-122 Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Communicare has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. During the fiscal year ended June 30, 2022, Communicare received $630,067 in funds from the Provider Relief Fund (Assistance Listing # 93.498), which has been excluded from the Schedule in accordance with guidance provided in the OMBs 2022 Compliance Supplement published in April 2022.

Finding Details

Finding 2022-002
Condition: During our audit procedures over reporting requirements, we discovered that there was an overall under reporting of expenses on the Federal Financial Report. Criteria: In order to maintain accurate reporting to granting agencies, when changing format of reports used to complete filings, these reports should be reviewed for accuracy. Statement of Cause: The original reports were financial statements that did not capture all the general ledger entries. The reports that were provided during the testing were general ledger transactions as well as the original reports used in making those draws, filing reports to the agency, which is when Communicare realized the financial statements for that grant didn?t catch all the general ledger transactions. The duplicates were on some of the original general ledger transaction listings that were used to complete the draws after Communicare switched from using the grant financial statement to the general ledger transaction listing. Indication of Repeat Finding: This is a repeat finding of Finding 2021-001. Statement of Effect: Communicare could not provide report used when preparing report for filing or rerun the exact report to agree back to the Federal Financial Report that was filed. Questioned Costs: No questioned costs were identified for Section 223 Demonstration Programs to Improve Community Mental Health Services (#93.829). Perspective Information: Differences occurred because Communicare switched format of support when completing the Federal Financial Report. Communicare will keep report used when completing reports filed with federal agencies. If format of reports are switched or rerun, they will be reviewed for any duplicated information. The difference of overall expenses in the report rerun compared to the Federal Financial Report is $63,302. The audit finding represents an isolated incident. Recommendation: We recommend that Communicare review the general ledger transaction listing and remove duplicates to ensure proper reporting to granting agencies. Views of Responsible Officials: Beginning November 2022, all financial reports used in grant reporting will be checked against general ledger transactions prior to finalizing the reports to outside agencies. Reports will also be ran to check against year-to-date totals to ensure any reclassed transactions are caught prior to finalizing any reports to outside agencies.
Finding 2022-002
Condition: During our audit procedures over reporting requirements, we discovered that there was an overall under reporting of expenses on the Federal Financial Report. Criteria: In order to maintain accurate reporting to granting agencies, when changing format of reports used to complete filings, these reports should be reviewed for accuracy. Statement of Cause: The original reports were financial statements that did not capture all the general ledger entries. The reports that were provided during the testing were general ledger transactions as well as the original reports used in making those draws, filing reports to the agency, which is when Communicare realized the financial statements for that grant didn?t catch all the general ledger transactions. The duplicates were on some of the original general ledger transaction listings that were used to complete the draws after Communicare switched from using the grant financial statement to the general ledger transaction listing. Indication of Repeat Finding: This is a repeat finding of Finding 2021-001. Statement of Effect: Communicare could not provide report used when preparing report for filing or rerun the exact report to agree back to the Federal Financial Report that was filed. Questioned Costs: No questioned costs were identified for Section 223 Demonstration Programs to Improve Community Mental Health Services (#93.829). Perspective Information: Differences occurred because Communicare switched format of support when completing the Federal Financial Report. Communicare will keep report used when completing reports filed with federal agencies. If format of reports are switched or rerun, they will be reviewed for any duplicated information. The difference of overall expenses in the report rerun compared to the Federal Financial Report is $63,302. The audit finding represents an isolated incident. Recommendation: We recommend that Communicare review the general ledger transaction listing and remove duplicates to ensure proper reporting to granting agencies. Views of Responsible Officials: Beginning November 2022, all financial reports used in grant reporting will be checked against general ledger transactions prior to finalizing the reports to outside agencies. Reports will also be ran to check against year-to-date totals to ensure any reclassed transactions are caught prior to finalizing any reports to outside agencies.