Audit 7385

FY End
2022-12-31
Total Expended
$2.00M
Findings
2
Programs
1
Year: 2022 Accepted: 2023-12-19
Auditor: Biggskofford

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
5554 2022-001 Significant Deficiency - AN
581996 2022-001 Significant Deficiency - AN

Programs

ALN Program Spent Major Findings
59.008 Disaster Assistance Loans $2.00M Yes 1

Contacts

Name Title Type
EAB6L5MFMJU1 Cory Arcarese Auditee
7195745562 Tyler Atkins Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures and lost revenues 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. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate allowable under the Uniform Guidance. The accompanying schedule of expenditures of federal awards ("Schedule") includes the federal grant activity of Nursing and Therapy Services of Colorado, Inc. ("Organization") under the U.S. Department of Small Business ("SBA") for the year ended December 31, 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"). Expenditures and lost revenues 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.
Title: BASIS OF PRESENTATION Accounting Policies: Expenditures and lost revenues 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. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate allowable under the Uniform Guidance. As required by SBA, Economic Injury Disaster Loans ("EIDL") are reported on the Schedule based on when loan proceeds were received. Because EIDL have no continuing compliance requirements other than repayment, they are not subject to Uniform Guidance audit requirements after the initial year of the loan.
Title: INDIRECT COSTS Accounting Policies: Expenditures and lost revenues 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. De Minimis Rate Used: N Rate Explanation: The Organization has elected not to use the 10% de minimis indirect cost rate allowable under the Uniform Guidance. The Organization has elected not to use the 10% de minimis indirect cost rate allowable under the Uniform Guidance.

Finding Details

Special Provisions of the Agreement Were Not Met Economic Injury Disaster Loan - Assistance Listing No. 59.008; Award Period: January 1, 2022 - December 31, 2022. Condition: Significant deficiency - The Organization did not comply with certain special tests and provisions as identified in the disaster assistance loan agreement. Criteria : The disaster assistance loan program requires the Organization to comply with certain provisions of the loan program, including obtaining and itemizing receipts and contracts for all loan funds spent and submitting to the SBA such itemization together with copies of the receipts, providing the SBA internal financial statements within 90 days of year-end, and posting SBA Form 722, Equal Opportunity Poster, where it will be clearly visible to employees, applicants for employment, and the general public. Questioned costs : None. Context : The Organization did not obtain and itemize receipts and contracts for all loan funds spent and submit to the SBA such itemization together with copies of the receipts; provide the SBA with internal financial statements within 90 days of year-end; or post SBA Form 722, Equal Opportunity Poster, where it is clearly visible to employees, applicants for employment, and the general public. Cause : There was turnover within Organization management after the disaster assistance loan was received, and other members of management were not provided with the training to ensure that program requirements were met. Effect : Program compliance requirements are at risk of not being met. Recommendation : The Organization should review the terms of the disaster assistance loan and ensure that all individuals responsible for carrying out the terms of the program are provided with applicable training to ensure that the program requirements are met. View of Responsible Official and Planned Corrective Action : Management agrees with the finding. See corrective action plan.
Special Provisions of the Agreement Were Not Met Economic Injury Disaster Loan - Assistance Listing No. 59.008; Award Period: January 1, 2022 - December 31, 2022. Condition: Significant deficiency - The Organization did not comply with certain special tests and provisions as identified in the disaster assistance loan agreement. Criteria : The disaster assistance loan program requires the Organization to comply with certain provisions of the loan program, including obtaining and itemizing receipts and contracts for all loan funds spent and submitting to the SBA such itemization together with copies of the receipts, providing the SBA internal financial statements within 90 days of year-end, and posting SBA Form 722, Equal Opportunity Poster, where it will be clearly visible to employees, applicants for employment, and the general public. Questioned costs : None. Context : The Organization did not obtain and itemize receipts and contracts for all loan funds spent and submit to the SBA such itemization together with copies of the receipts; provide the SBA with internal financial statements within 90 days of year-end; or post SBA Form 722, Equal Opportunity Poster, where it is clearly visible to employees, applicants for employment, and the general public. Cause : There was turnover within Organization management after the disaster assistance loan was received, and other members of management were not provided with the training to ensure that program requirements were met. Effect : Program compliance requirements are at risk of not being met. Recommendation : The Organization should review the terms of the disaster assistance loan and ensure that all individuals responsible for carrying out the terms of the program are provided with applicable training to ensure that the program requirements are met. View of Responsible Official and Planned Corrective Action : Management agrees with the finding. See corrective action plan.