FAC Explorer

Audit 54611

FY End
2022-06-30
Total Expended
$1.73M
Findings
2
Programs
1
Organization: Ascentria Care Alliance, Inc. (MA)
Year: 2022 Accepted: 2023-07-09
Auditor: Cliftonlarsonallen LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
58749 2022-001 Material Weakness Yes L
635191 2022-001 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
93.498 Provider Relief Fund $1.73M Yes 1

Contacts

Name Title Type
HH7NH4ZE3JE3 Sergio Plaza Auditee
7742433100 Sean Morrison Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures in 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 elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Ascentria Care Alliance, Inc. (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 the Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements.
Title: Reconciliation to Financial Statements Accounting Policies: Expenditures in 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 elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The financial statements reflect revenue recognized from the Provider Relief Fund (PRF) of $671,039 and $3,741,118 for the years ended June 30, 2022 and 2021, respectively. TheSchedule includes Provider Relief Funds of $1,729,475 that were received in PRF Period 2and Period 3 in accordance with the requirements of the compliance supplement forassistance listing number 93.498. Of the PRF funding received in Period 2 and Period 3,$237,404 was included in deferred revenue as of June 30, 2021.

Finding Details

Finding 2022-001
2022-001 Federal Agency: U.S. Department of Health and Human Services Federal Program Name: COVID-19 Provider Relief Fund Assistance Listing Number: 93.498 Award Period: January 1, 2021 ? June 30, 2022 Type of Finding: ? Material Weakness in Internal Control Over Compliance ? Compliance Criteria or specific requirement: Internal controls should be in place to provide reasonable assurance that federal relief grant revenue is spent and reported on in accordance with the terms of the grant. Condition: A portion of costs claimed during Reporting Period 3 had previously been claimed in Reporting Period 2, and thus had already been reimbursed. Questioned costs: Questioned costs of $17,597 were identified based on costs claimed during Reporting Period 3 that were previously claimed in Reporting Period 2. Context: In a statistically valid sample of 5 reports tested, the auditor identified 1 instance of noncompliance where the same costs were tested in 2 different reports. Cause: Condition was caused due to management of business component tested believing that that the "Other Provider Relief Fund Expenses for Payments Received During Payment Period: January 1, 2021 to June 30, 2021" table required total cumulative cost incurred to-date to be reported. Effect: The effect of the condition was $17,597 of cost claimed against the grant in excess of actual cost incurred. Repeat finding: Yes Recommendation: Recommend that the Organization should review the PRF Reporting Portal instructions detailing how to complete individual schedules in the Reporting Portal and ensure that all costs claimed are fully supported. The Organization should also ensure that an individual with sufficient training and experience is assigned to review and approve all grant reports submitted through the Reporting Portal. Views of responsible officials: There is no disagreement with the audit finding.
Finding 2022-001
2022-001 Federal Agency: U.S. Department of Health and Human Services Federal Program Name: COVID-19 Provider Relief Fund Assistance Listing Number: 93.498 Award Period: January 1, 2021 ? June 30, 2022 Type of Finding: ? Material Weakness in Internal Control Over Compliance ? Compliance Criteria or specific requirement: Internal controls should be in place to provide reasonable assurance that federal relief grant revenue is spent and reported on in accordance with the terms of the grant. Condition: A portion of costs claimed during Reporting Period 3 had previously been claimed in Reporting Period 2, and thus had already been reimbursed. Questioned costs: Questioned costs of $17,597 were identified based on costs claimed during Reporting Period 3 that were previously claimed in Reporting Period 2. Context: In a statistically valid sample of 5 reports tested, the auditor identified 1 instance of noncompliance where the same costs were tested in 2 different reports. Cause: Condition was caused due to management of business component tested believing that that the "Other Provider Relief Fund Expenses for Payments Received During Payment Period: January 1, 2021 to June 30, 2021" table required total cumulative cost incurred to-date to be reported. Effect: The effect of the condition was $17,597 of cost claimed against the grant in excess of actual cost incurred. Repeat finding: Yes Recommendation: Recommend that the Organization should review the PRF Reporting Portal instructions detailing how to complete individual schedules in the Reporting Portal and ensure that all costs claimed are fully supported. The Organization should also ensure that an individual with sufficient training and experience is assigned to review and approve all grant reports submitted through the Reporting Portal. Views of responsible officials: There is no disagreement with the audit finding.