FAC Explorer

Audit 47793

FY End
2022-06-30
Total Expended
$10.70M
Findings
4
Programs
7
Organization: Vinfen Corporation (MA)
Year: 2022 Accepted: 2023-02-26
Auditor: Rsm US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
45264 2022-002 Material Weakness - B
45265 2022-003 Material Weakness - B
621706 2022-002 Material Weakness - B
621707 2022-003 Material Weakness - B

Programs

ALN Program Spent Major Findings
14.181 Supportive Housing for Persons with Disabilities $5.06M Yes 0
93.498 Provider Relief Fund and American Rescue Plan (arp) Rural Distribution Covid 19 Cares Act $3.65M Yes 0
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $1.08M Yes 2
93.958 Block Grants for Community Mental Health Services $343,836 - 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $324,918 - 0
14.267 Continuum of Care Program $153,343 - 0
84.126 Rehabilitation Services- Vocational Rehabilitation Grants to States: Pre-Employment Transitional Services $96,495 - 0

Contacts

Name Title Type
PC6GM9GNWJB7 Melissa Licata Auditee
6174411800 Richard Ferguson Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances 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. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES (14.181) - Balances outstanding at the end of the audit period were 4532000.
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. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The accompanying consolidated schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Vinfen Corporation and Affiliates (the Organization) under programs of the federal government for the year ended June 30, 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 postion, changes in net assets, or cash flows of the Organization.
Title: Provider Relief Fund 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. De Minimis Rate Used: Y Rate Explanation: The auditee used the de minimis cost rate. The amount presented on the Schedule for Assistance Listing Number 93.498, COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (PRF Funds), is for the year ended June 30, 2022. The amount presented reconciles to the Provider Relief Fund (PRF) information reported to the Health Resources and Services Administration (HRSA) as follows: Type of Distribution- General and Targeted, Total OTher Provider Relief Fund Expenses Reported- $3,251,959, Total Lost Revenue Reported- $-0-, Total- $3,251,959. Health and Human Services (HHS) has indicated the PRF Funds on the Schedule be reported corresponding to reporting requirements of the HRSA PRF Reporting Portal (the 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. During the year ended June 30, 2021, $3,251,959 was recognized as revenue in the Organizations financial statements that did not meet the requirements to be included in the Schedule for the year ended June 20, 2021. Each Period has a specified Period of Availability and timing of reporting requirements. Entities report into the Portal after each Periods deadline to use the funds (i.e., after the end of the Period of Availability). In accordance with guidance from HHS, these amounts are presented as Period 1. The Schedule includes $3,251,959 of PRF Funds received from HHS between July 1, 2020 through December 31, 2020. In accordance with the guidance from HHS, these amounts are presented as Period 2. Such amounts were recognized as CARES Act revenues in the Organizations consolidated financial statements as shown in the Schedule in the year ended June 30, 2021. During the year ended June 30, 2022, $19,656 of PRF Funds received from HHS between July 1, 2021 through December 31, 2021, and presented as Period 4, were recognized as revenue in the Organizations financial statements for the year ended June 30, 2022 that did not meet the requirements to be included in the Schedule for the year ended June 30, 2022.

Finding Details

Finding 2022-002
Finding No. 2022-002: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Health and Human Services (HHS) Program: ALN: 93.829, Section 223 Demonstration Programs to Improve Community Mental Health Services Criteria: Program requirements state that only allowable expenses to support the program can be expended to the program under the grant. Condition: The required allowable cost sample size included 60 payroll expense selections and 25 other/general expenditure selections. Of that sample size, 5 other/general expenditure selections that were charged to the program were not allowable expenses under the program. Cause: The individual?s involved in the Organization?s internal control process did not have the appropriate understanding of the allowable costs charged to the program, which allowed a clerical error charging unallowable expenditures to the program to not be detected and corrected. Effect: Unallowable costs were charged to the program. Improper reporting could result in the HHS withholding payments or recouping payments to the Organization. Questioned Costs: $29,034 which consisted of 5 general expenditure transactions that were charged to the program that were not allowable under the program. Upon further investigation by management, additional unallowable expenditures totaling $21,968 were charged to the program during the year ended June 30, 2022. Context: 5 of 85 expenditure expense selections tested were determined to be unallowable. All of the expenditures identified as errors, including the additional expenditures identified by management were the same type of expense. Recommendation: We recommend the Organization implement additional trainings for management and operations staff working on the program to ensure a thorough understanding of the program and the related allowable costs and that management implement additional control procedures for the review the allowability of expenses charged to the program. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See accompanying Corrective Action Plan.
Finding 2022-003
Finding No. 2022-003: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Health and Human Services (HHS) Program: ALN: 93.829, Section 223 Demonstration Programs to Improve Community Mental Health Services Criteria: Program requirements state that only allowable indirect expenses to support the program can be charged to the program under the grant. Condition: The Organization utilized an internal general and administrative allocation percentage to charge indirect expenses to the program instead of the ten percent de minimus rate elected to be used by the Organization and allowed under the program. Cause: An error in the determination of the amount of indirect costs to be charged to the program was made and an appropriate review of the program billings was not performed by a member of management. Effect: Excess indirect costs were charged to the program. Improper reporting could result in the HHS withholding payments or recouping payments to the Organization. Questioned Costs: $47,736 was the total calculated amount that was over charged to the program by using the Organization?s internal general and administrative allocation rather than the ten percent de minimus rate during the year ended June 30, 2022. Context: Indirect expenses charged to the program were in excess allowable costs using the ten percent de minimus rate. Recommendation: We recommend the Organization implement additional trainings for management and operations staff working on the program to ensure a thorough understanding of the program and the related allowable costs and that management implement additional control procedures for the review of the allowability of expenses charged to the program. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See accompanying Corrective Action Plan.
Finding 2022-002
Finding No. 2022-002: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Health and Human Services (HHS) Program: ALN: 93.829, Section 223 Demonstration Programs to Improve Community Mental Health Services Criteria: Program requirements state that only allowable expenses to support the program can be expended to the program under the grant. Condition: The required allowable cost sample size included 60 payroll expense selections and 25 other/general expenditure selections. Of that sample size, 5 other/general expenditure selections that were charged to the program were not allowable expenses under the program. Cause: The individual?s involved in the Organization?s internal control process did not have the appropriate understanding of the allowable costs charged to the program, which allowed a clerical error charging unallowable expenditures to the program to not be detected and corrected. Effect: Unallowable costs were charged to the program. Improper reporting could result in the HHS withholding payments or recouping payments to the Organization. Questioned Costs: $29,034 which consisted of 5 general expenditure transactions that were charged to the program that were not allowable under the program. Upon further investigation by management, additional unallowable expenditures totaling $21,968 were charged to the program during the year ended June 30, 2022. Context: 5 of 85 expenditure expense selections tested were determined to be unallowable. All of the expenditures identified as errors, including the additional expenditures identified by management were the same type of expense. Recommendation: We recommend the Organization implement additional trainings for management and operations staff working on the program to ensure a thorough understanding of the program and the related allowable costs and that management implement additional control procedures for the review the allowability of expenses charged to the program. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See accompanying Corrective Action Plan.
Finding 2022-003
Finding No. 2022-003: Allowable Costs/Cost Principles Federal Agency: U.S. Department of Health and Human Services (HHS) Program: ALN: 93.829, Section 223 Demonstration Programs to Improve Community Mental Health Services Criteria: Program requirements state that only allowable indirect expenses to support the program can be charged to the program under the grant. Condition: The Organization utilized an internal general and administrative allocation percentage to charge indirect expenses to the program instead of the ten percent de minimus rate elected to be used by the Organization and allowed under the program. Cause: An error in the determination of the amount of indirect costs to be charged to the program was made and an appropriate review of the program billings was not performed by a member of management. Effect: Excess indirect costs were charged to the program. Improper reporting could result in the HHS withholding payments or recouping payments to the Organization. Questioned Costs: $47,736 was the total calculated amount that was over charged to the program by using the Organization?s internal general and administrative allocation rather than the ten percent de minimus rate during the year ended June 30, 2022. Context: Indirect expenses charged to the program were in excess allowable costs using the ten percent de minimus rate. Recommendation: We recommend the Organization implement additional trainings for management and operations staff working on the program to ensure a thorough understanding of the program and the related allowable costs and that management implement additional control procedures for the review of the allowability of expenses charged to the program. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding. See accompanying Corrective Action Plan.