FAC Explorer

Audit 51673

FY End
2022-09-30
Total Expended
$1.40M
Findings
2
Programs
1
Organization: Pacific Retirement Services, Inc. and Affiliates (OR)
Year: 2022 Accepted: 2023-06-27
Auditor: Cliftonlarsonallen

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
47576 2022-001 - - B
624018 2022-001 - - B

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $1.40M Yes 1

Contacts

Name Title Type
D4FTLKJV4JL1 Mary Schoeggl Auditee
5418577610 Erin Davis Auditor
No contacts on file

Notes to SEFA

Accounting Policies: NOTE 1 BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of the Organization, under programs of the federal government for the year ended September 30, 2022. The information in this schedule is presented in accordance with the applicable 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 net position, changes in net positions, or cash flows of the Organization. NOTE 2 SIGNIFICANT ACCOUNTING POLICIES Expenditure 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. The Organization has not elected to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance. NOTE 3 RECONCILIATION TO CONSOLIDATED FINANCIAL STATEMENTS The consolidated financial statements reflect revenue recognized from the Provider Relief Fund (PRF) of $845,660 and $2,019,145 for the years ended September 30, 2022 and 2021, respectively. Included in the revenue recognized during the year ended September 30, 2022 is $845,660 received during PRF periods 2 and 3. Included in the revenue recognized during the year ended September 30, 2021 is $554,865 received during PRF periods 2 and 3. The schedule includes PRF of $1,400,525 that were received in Periods 2 and 3 that were in accordance with the compliance supplement for assistance listing number 93.498.The SEFA includes Provider Relief Funds of $1,400,525 that were received in Period 2 and Period 3 in accordance with the requirements of the compliance supplement for assistance listing number 93.498. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2022-001
Finding 2022-001 Unallowed Cost Federal Agency: U.S. Department of Health and Human Services Federal Program Title: COVID-19 Provider Relief Fund Program Program Assistance Listing Number: 93.498 Award Period: July 1, 2020 to June 30, 2021 Type of Finding: Unallowed Cost Criteria or specific requirement: 2 CFR Part 200 Uniform Guidance Condition: The auditor tested a sample of 60 transactions. One exception was identified where the expense was not an eligible expense under the program. Questioned Cost: $650 Context: Although one of the supporting transactions listed was an unallowed cost, the organization had unreimbursed expenses in excess of the $650 that were qualifying expenses. Therefore the amount reported on the schedule of expenditures of federal awards is correct. Cause: The transaction was a nonrecurring expense that was supported by an invoice referring to COVID-19. Effect: The supporting list of transactions for amount of expenses reported and included on the schedule of expenditures of federal awards included an unallowed cost. Recommendation: The organization should update their supporting schedule of transactions to remove the unallowed cost and include an allowed cost from the list of unreimbursed transactions so that the support for the total amount on the schedule of expenditures of federal awards is supported by a list of transactions that does not include an unallowed cost. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-001
Finding 2022-001 Unallowed Cost Federal Agency: U.S. Department of Health and Human Services Federal Program Title: COVID-19 Provider Relief Fund Program Program Assistance Listing Number: 93.498 Award Period: July 1, 2020 to June 30, 2021 Type of Finding: Unallowed Cost Criteria or specific requirement: 2 CFR Part 200 Uniform Guidance Condition: The auditor tested a sample of 60 transactions. One exception was identified where the expense was not an eligible expense under the program. Questioned Cost: $650 Context: Although one of the supporting transactions listed was an unallowed cost, the organization had unreimbursed expenses in excess of the $650 that were qualifying expenses. Therefore the amount reported on the schedule of expenditures of federal awards is correct. Cause: The transaction was a nonrecurring expense that was supported by an invoice referring to COVID-19. Effect: The supporting list of transactions for amount of expenses reported and included on the schedule of expenditures of federal awards included an unallowed cost. Recommendation: The organization should update their supporting schedule of transactions to remove the unallowed cost and include an allowed cost from the list of unreimbursed transactions so that the support for the total amount on the schedule of expenditures of federal awards is supported by a list of transactions that does not include an unallowed cost. Views of responsible officials: There is no disagreement with the audit finding.