Audit 54024

FY End

2022-12-31

Total Expended

$1.68M

Findings

2

Programs

1

Organization: United Church Homes, Inc. and Affiliates (OH)

Year: 2022 Accepted: 2023-09-28

Auditor: Plante & Moran PLLC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
58226	2022-002	Material Weakness	Yes	L
634668	2022-002	Material Weakness	Yes	L

ALN	Program	Spent	Major	Findings
93.498	Covid-19 - Provider Relief Fund	$1.68M	Yes	1

Contacts

Name	Title	Type
ZJ46K54KYBV5	John Renner	Auditee
7403824885	Jason Rees	Auditor
No contacts on file

Notes to SEFA

Title: Organizations Not Included in the Schedule Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of United Church Homes, Inc. and Affiliates (the Organization) 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 (the 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 assets, or cash flows of the Organization. Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures does not apply the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, but rather applies the U.S. Department of Health and Human Services guidance (ALN 93.498, Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution) and frequently asked questions, as outlined in the Compliance Supplement. For the PRF program, HHS has indicated that the amounts on the Schedule should be reported in correspondence with reporting requirements of the HHS PRF portal. Payments from HHS for PRF are assigned to one of five payment received periods based upon the date each payment for PRF was received. Each period has a specific period of availability and timing of reporting requirements. The pass through entity identifying numbers are presented where available. The Organization has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Organization's consolidated financial statements include the operations of the housing entities that received approximately $120,120,000 in federal awards, which is not included in the Schedule for the year ended December 31, 2022. These entities received a separate financial statement audit and separate audits of federal awards: UCC VI, Inc.United Church Residences of Athens, Georgia, Inc.United Church Residences of Horn Lake, Mississippi, Inc.UCC IX, Inc.UCC XVII, Inc.UCC XXIII, Inc.United Church Residences of Olean, New York, Inc. United Church Residences of Marion, Ohio, Inc.United Church Residences of Canal Winchester, Ohio, Inc.United Church Residences of Oxford, Mississippi, Inc.United Church Residences of Indianapolis, Indiana, Inc.UCC X, Inc.United Church Residences of Ellicott, New York, Inc. United Church Residences of North Lewisburg, Ohio, Inc.United Church Residences of Fredonia, New York, Inc.United Church Residences of Corinth, Mississippi, Inc.United Church Residences of Greenwood, Mississippi, Inc.United Church Residences of Immokalee, Florida, Inc.UCC XIX, Inc.United Church Residences of Covington, Tennessee, Inc.United Church Residences of Burlington, Iowa, Inc.Friendship Plaza I, Inc.UCC XXI, Inc.United Church Residences of Kenton, Ohio, Inc.United Church Residences of Holly Springs, Mississippi, Inc.United Church Residences of Jackson, Mississippi, Inc.United Church Residences of West Jackson, Mississippi, Inc.UCC XV, Inc.UCC IV, Inc.United Church Residences of Ludington, MI Nonprofit Housing CorporationUCC XX, Inc.United Church Residences of Goshen, Indiana, Inc. United Church Residences of Clarksdale, Mississippi, Inc.United Church Residences of Ashland, Ohio, Inc.Morning Star Community NFP, Inc.UCC III, Inc.UCC XVIII, Inc. United Church Residences of Pickerington, Ohio, Inc.United Church Residences of Brilliant, Ohio, Inc.United Church Residences of Delaware, Ohio, Inc.United Church Residences of Fort Wayne, Indiana, Inc.United Church Residences of Fort Wayne, Indiana/Phase II, Inc.United Church Residences of Bellefontaine, Ohio, Inc.United Church Residences of Memphis, Tennessee, Inc.United Church Residences of Bedford, Inc. United Church Residences of South Horn Lake, Mississippi, Inc. UCC II, Inc.United Church Residences of Rome, Georgia, Inc.United Church Residences of Moundsville, West Virginia, Inc.United Church Residences of Winder, Georgia, Inc.UCC XI, Inc.DUQC Housing II NFP, Inc.

Finding Details

Finding 2022-002

ALN, Federal Agency, and Program Name - 93.498, U.S. Department of Health and Human Services (HHS), COVID 19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Federal Award Identification Number and Year - N/A Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - Yes; 2021-002 Criteria - The Post-Payment Notice of Reporting Requirements for Provider Relief Fund General and Target Distributions (the "Notice"), dated June 11, 2021, requires that the lost revenue methodology utilized by the Organization should be reported accurately within the HHS portal submission. Condition - The lost revenue methodologies reported in the Period 3 and Period 4 portal submissions were incorrect, as the report said the Organization used actual to actual (option i); however, an alternative method under option iii was actually utilized when calculating lost revenue. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - UCH reported that option i for calculating lost revenue was used; however, the UHC actually calculated lost revenue using option iii. Despite the reporting errors noted above, UCH reported enough lost revenue (using option iii) to cover all PRF distributions received in period 3 and period 4 combined. In addition, UCH provided support for testing that agreed, in total, to the lost revenue reported in its period 3 and period 4 portal submissions. No findings were noted during testing of lost revenue used to support the total expenditures reported on the SEFA; therefore, no questioned costs were identified. Cause and Effect - UCH did not review portal submissions for period 3 or period 4, as completed, to ensure they were in accordance with the Notice prior to the portal submissions and to ensure the lost revenue methodology was properly reported. The lack of understanding and review of the reporting instructions resulted in the improper reporting of the lost revenue methodology in both HHS portal submissions for periods 3 and 4. Recommendation - UCH should review all instructions and FAQs released by the awarding agency to ensure reporting requirements are completed in accordance with the required regulations. Views of Responsible Officials and Corrective Action Plan - Controls are now in place to ensure proper levels of review are implemented for federal program report submissions.

Finding 2022-002

ALN, Federal Agency, and Program Name - 93.498, U.S. Department of Health and Human Services (HHS), COVID 19 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distribution Federal Award Identification Number and Year - N/A Pass-through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - Yes; 2021-002 Criteria - The Post-Payment Notice of Reporting Requirements for Provider Relief Fund General and Target Distributions (the "Notice"), dated June 11, 2021, requires that the lost revenue methodology utilized by the Organization should be reported accurately within the HHS portal submission. Condition - The lost revenue methodologies reported in the Period 3 and Period 4 portal submissions were incorrect, as the report said the Organization used actual to actual (option i); however, an alternative method under option iii was actually utilized when calculating lost revenue. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - UCH reported that option i for calculating lost revenue was used; however, the UHC actually calculated lost revenue using option iii. Despite the reporting errors noted above, UCH reported enough lost revenue (using option iii) to cover all PRF distributions received in period 3 and period 4 combined. In addition, UCH provided support for testing that agreed, in total, to the lost revenue reported in its period 3 and period 4 portal submissions. No findings were noted during testing of lost revenue used to support the total expenditures reported on the SEFA; therefore, no questioned costs were identified. Cause and Effect - UCH did not review portal submissions for period 3 or period 4, as completed, to ensure they were in accordance with the Notice prior to the portal submissions and to ensure the lost revenue methodology was properly reported. The lack of understanding and review of the reporting instructions resulted in the improper reporting of the lost revenue methodology in both HHS portal submissions for periods 3 and 4. Recommendation - UCH should review all instructions and FAQs released by the awarding agency to ensure reporting requirements are completed in accordance with the required regulations. Views of Responsible Officials and Corrective Action Plan - Controls are now in place to ensure proper levels of review are implemented for federal program report submissions.