FAC Explorer

Audit 42162

FY End
2022-12-31
Total Expended
$46.83M
Findings
4
Programs
2
Organization: Tockwotton Home D/b/a Tockwotton on the Waterfront (RI)
Year: 2022 Accepted: 2023-04-25
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
49810 2022-002 Significant Deficiency - N
49811 2022-001 Significant Deficiency Yes B
626252 2022-002 Significant Deficiency - N
626253 2022-001 Significant Deficiency Yes B

Programs

ALN Program Spent Major Findings
14.129 Mortgage Insurance_nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities $45.78M Yes 1
93.498 Provider Relief Fund $1.05M Yes 1

Contacts

Name Title Type
JTD9FDXYL8V5 Joyce Nallen Auditee
4012725280 Jonathan Fink Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: Basis of Presentation: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Tockwotton Home dba: Tockwotton on the Waterfront under programs of the federal government for the year ended December 31, 2022. 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Tockwotton Home dba: Tockwotton on the Waterfront, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Tockwotton Home dba: Tockwotton on the Waterfront. Basis of Accounting: Expenditures reported on the Schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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. For performance-based awards, expenditures reported represent amounts earned. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. MORTGAGE INSURANCE_NURSING HOMES, INTERMEDIATE CARE FACILITIES, BOARD AND CARE HOMES AND ASSISTED LIVING FACILITIES (14.129) - Balances outstanding at the end of the audit period were $44,961,906.
Title: PROVIDER RELIEF FUND Accounting Policies: Basis of Presentation: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Tockwotton Home dba: Tockwotton on the Waterfront under programs of the federal government for the year ended December 31, 2022. 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Tockwotton Home dba: Tockwotton on the Waterfront, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Tockwotton Home dba: Tockwotton on the Waterfront. Basis of Accounting: Expenditures reported on the Schedule are reported on the accrual basis of accounting. For cost-reimbursement awards, 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. For performance-based awards, expenditures reported represent amounts earned. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The consolidated financial statements of Tockwotton Home dba: Tockwotton on the Waterfront reflect revenue recognized from the Provider Relief Fund of $737,295 for the year ended December 31, 2022. The Schedule includes Provider Relief Funds of $1,046,682 that were received in Period 3 and 4 in accordance with the requirements of the compliance supplement for assistance listing number 93.498.

Finding Details

Finding 2022-002
Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Funds collected as a security deposit shall be kept in the name of the project, separate and apart from all other funds of the project in a trust account. The amount of this account shall at all times equal or exceed the aggregate of all outstanding obligations under that account. Funds must not be commingled with funds from any other projects. Condition: The Organization's internal controls over compliance related to security deposits were not effective. For two out of four quarter-ends tested, the balance in the Organization?s security deposit liability account exceeded the balance in the Organization?s security deposit cash account. Questioned costs: None Cause: Management oversight. Effect: The Organization did not have sufficient funds in their security deposit account to cover the security deposit liability. The Organization did have sufficient funds in other accounts to cover the liability. The security deposit account was also sufficient at December 31, 2022 to cover the liability. Recommendation: We recommend that management review the account monthly to ensure there is sufficient cash in the account to cover security deposit collections. Views of responsible officials and planned corrective actions: Management will review the security deposit account monthly to ensure proper coverage of the liability.
Finding 2022-001
Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. The Organization claimed expenses based on specifically identified COVID related expenses and general and administrative expenses. Condition: The Organization?s internal controls over compliance related to payroll were not effective. Eight out of sixty payroll expenditures tested were not properly calculated based on the criteria the Organization set. The expenditures were incurred prior to the Organization being notified of the same finding in the 2021 audit. Although some employees were paid less than the calculated amount, in the aggregate, the payroll amount was greater than the support amount but still fully allowed under the grant. Questioned costs: None Cause: Management oversight. Effect: The auditor noted no instances of noncompliance with the provisions related to eligible expenditures; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Recommendation: We recommend that management review all expenditures for accuracy. However, all expenses were fully allowed. Views of responsible officials and planned corrective actions: Management will review calculations and support for all payroll expenditures to ensure accuracy in future reporting.
Finding 2022-002
Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Funds collected as a security deposit shall be kept in the name of the project, separate and apart from all other funds of the project in a trust account. The amount of this account shall at all times equal or exceed the aggregate of all outstanding obligations under that account. Funds must not be commingled with funds from any other projects. Condition: The Organization's internal controls over compliance related to security deposits were not effective. For two out of four quarter-ends tested, the balance in the Organization?s security deposit liability account exceeded the balance in the Organization?s security deposit cash account. Questioned costs: None Cause: Management oversight. Effect: The Organization did not have sufficient funds in their security deposit account to cover the security deposit liability. The Organization did have sufficient funds in other accounts to cover the liability. The security deposit account was also sufficient at December 31, 2022 to cover the liability. Recommendation: We recommend that management review the account monthly to ensure there is sufficient cash in the account to cover security deposit collections. Views of responsible officials and planned corrective actions: Management will review the security deposit account monthly to ensure proper coverage of the liability.
Finding 2022-001
Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award. The Organization claimed expenses based on specifically identified COVID related expenses and general and administrative expenses. Condition: The Organization?s internal controls over compliance related to payroll were not effective. Eight out of sixty payroll expenditures tested were not properly calculated based on the criteria the Organization set. The expenditures were incurred prior to the Organization being notified of the same finding in the 2021 audit. Although some employees were paid less than the calculated amount, in the aggregate, the payroll amount was greater than the support amount but still fully allowed under the grant. Questioned costs: None Cause: Management oversight. Effect: The auditor noted no instances of noncompliance with the provisions related to eligible expenditures; however, the lack of internal controls over these compliance requirements provides an opportunity for noncompliance. Recommendation: We recommend that management review all expenditures for accuracy. However, all expenses were fully allowed. Views of responsible officials and planned corrective actions: Management will review calculations and support for all payroll expenditures to ensure accuracy in future reporting.