Audit 48354

FY End

2022-06-30

Total Expended

$1.16M

Findings

2

Programs

2

Organization: Region V Services (NE)

Year: 2022 Accepted: 2023-03-30

Auditor: Eide Bailly LLP

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
50834	2022-004	Material Weakness	-	ABL
627276	2022-004	Material Weakness	-	ABL

ALN	Program	Spent	Major	Findings
93.498	Provider Relief Fund and American Rescue Plan	$944,012	Yes	1
20.513	Enhanced Mobility of Seniors & Individuals with Disabilities	$214,317	-	0

Contacts

Name	Title	Type
FP1KSCKNE9E9	Joe Dondlinger	Auditee
4024716400	Justin Hope	Auditor
No contacts on file

Notes to SEFA

Title: Note 4: Provider Relief Funds Accounting Policies: Note 1: Basis of Presentation - The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of 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 position, changes in net position or cash flows of the Organization. Note 2: 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 the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The Organization received amounts from the U.S. Department of Health and Human Services (HHS) through the Provider Relief Fund (PRF) program (Federal Financial Assistance Listing/CFDA #93.498) during the calendar year ended December 31, 2020. The Organization incurred eligible expenditures and lost revenue and, therefore, recognized revenue in the financial statements totaling $-0- for the year ended June 30, 2022 and $944,012 in previous periods. In accordance with the compliance supplement addendum, the PRF expenditures recognized on the schedule are based on the reporting to HHS for the period ending June 30, 2022, as required under the PRF program. The amount of PRF expenditures included on the schedule requires management to make estimates and assumptions that affect the reported amounts. Accordingly, such expenditures are considered a significant estimate. Estimates and assumptions may include reducing actual expenses by amounts that have been reimbursed or are obligated to be reimbursed by other sources. Actual results could differ from those estimates.

Finding Details

Finding 2022-004

Identification of the Federal Program: Federal Assistance Listing #93.498 US Department of Health and Human Services Provider Relief Fund Activities Allowed/Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control Reporting Material Weakness in Internal Control Over Compliance and Material Noncompliance. Criteria: 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. Condition: The Organization selected option III to calculate lost revenue, which is the alternative reasonable method based on management?s narrative. For some of the periods reported in the Organization?s Period 2 submission, the reported lost revenue amounts did not agree to the underlying internal financial data in accordance with management?s narrative. Cause: The Organization did not have an effective internal control process in place to ensure review and approval of the lost revenue calculation claimed under the federal program and the report submitted for Period 2 was accurate and in accordance with the terms and conditions of the federal award. Effect: The reporting to HHS for Period 2 was considered incorrect. Amounts reported for 5 of the 8 key lost revenue line items (quarter 3 2020 and quarter 1 ? quarter 4 2021) did not agree to the underlying financial data. The Organization incurred reported actual lost revenue amounts for quarter 3 2021 and quarter 4 2021. Had the proper amounts been reported, the impact would have been to decrease the reported lost revenue by $127,469. Questioned Costs: None reported. Context: Key line items were tested on the Period 2 HHS report. Recommendation: We recommend the Organization enhance its existing internal control processes to ensure the lost revenue calculation claimed meets the requirements of the federal program. Views of Responsible Officials and Planned Corrective Action: Management agrees with the noted finding. However, had the Organization reported the correct lost revenue figures based on their option narrative, the Organization satisfactorily incurred eligible expenses and lost revenue in excess of funding expended. Management will continue to refine processes to more diligently review the lost revenue calculation to ensure such amounts are in accordance with the terms and conditions of the federal award.

Finding 2022-004

Identification of the Federal Program: Federal Assistance Listing #93.498 US Department of Health and Human Services Provider Relief Fund Activities Allowed/Unallowed and Allowable Costs/Cost Principles Material Weakness in Internal Control Reporting Material Weakness in Internal Control Over Compliance and Material Noncompliance. Criteria: 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. Condition: The Organization selected option III to calculate lost revenue, which is the alternative reasonable method based on management?s narrative. For some of the periods reported in the Organization?s Period 2 submission, the reported lost revenue amounts did not agree to the underlying internal financial data in accordance with management?s narrative. Cause: The Organization did not have an effective internal control process in place to ensure review and approval of the lost revenue calculation claimed under the federal program and the report submitted for Period 2 was accurate and in accordance with the terms and conditions of the federal award. Effect: The reporting to HHS for Period 2 was considered incorrect. Amounts reported for 5 of the 8 key lost revenue line items (quarter 3 2020 and quarter 1 ? quarter 4 2021) did not agree to the underlying financial data. The Organization incurred reported actual lost revenue amounts for quarter 3 2021 and quarter 4 2021. Had the proper amounts been reported, the impact would have been to decrease the reported lost revenue by $127,469. Questioned Costs: None reported. Context: Key line items were tested on the Period 2 HHS report. Recommendation: We recommend the Organization enhance its existing internal control processes to ensure the lost revenue calculation claimed meets the requirements of the federal program. Views of Responsible Officials and Planned Corrective Action: Management agrees with the noted finding. However, had the Organization reported the correct lost revenue figures based on their option narrative, the Organization satisfactorily incurred eligible expenses and lost revenue in excess of funding expended. Management will continue to refine processes to more diligently review the lost revenue calculation to ensure such amounts are in accordance with the terms and conditions of the federal award.