Finding 32082 (2022-001)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-09-18

AI Summary

  • Overall Opinion: The auditor found that the financial statements were prepared correctly according to accounting standards.
  • Internal Control Issues: There was one significant deficiency noted in internal controls over federal award programs, but no major issues with financial reporting.
  • Next Steps: Review Finding 2022-001 related to federal programs to address the identified deficiency.

Finding Text

SUMMARY OF AUDITOR?S RESULTS 1. The Independent Auditor?s Report expresses an unmodified opinion on whether the financial statements of The Church Home of the Protestant Episcopal Church in the City of Rochester d/b/a the Episcopal Church Home?s (an affiliate of Episcopal SeniorLife Communities) (the Home) were prepared in accordance with generally accepted accounting principles. 2. No significant deficiencies or material weaknesses relating to the audit of the financial statements are reported in the Independent Auditor?s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards. 3. No instances of noncompliance material to the financial statements of the Home which would be required to be reported in accordance with Government Auditing Standards, were disclosed during the audit. 4. One significant deficiency relating to the internal control over major federal award programs are reported in the Independent Auditor?s Report on Compliance for Each Major Federal Program; Report on Internal Control over Compliance; and Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance. See Finding 2022 ? 001. 5. The Independent Auditor?s Report on Compliance for Each Major Federal Program for the Home expresses an unmodified opinion. 6. There was one audit finding relative to the major federal award program that is required to be reported in accordance with Code of Federal Regulations Section 200.516(a) of the Uniform Guidance in this schedule. See Finding 2022 ? 001.

Corrective Action Plan

Cause The Home included certain eligible expenses in its Provider Relief Fund reports due to evolving guidance and availability of funding streams at the time the reporting was due for the year ended December 31, 2021, at which time the Home was not pursuing reimbursement for these eligible expenses from the Federal Emergency Management Agency (FEMA). Upon further guidance and clarification of available funds, the Home ultimately pursued reimbursement of these eligible expenses through FEMA. Effect While the Home incurred more than sufficient eligible expenditures and lost revenues to exhibit that the Home?s funds were fully utilized, the expenses claimed for reimbursement through FEMA are, in part, duplicated with expenses claimed for PRF funding. Recommendation We recommend that the Home maintain documentation that ensures they incurred enough eligible expenditures above and beyond amounts claimed for FEMA funding and lost revenue to continue to qualify for the full amount of the PRF funding, even though the expenditures claimed on the PRF reports were also claimed for FEMA funding. Management?s Response If these expenses were not included in the claim for PRF funding, the Home would have been eligible to apply these applicable funds against its lost revenue for the period being reported.

Categories

Questioned Costs Reporting Material Weakness Significant Deficiency

Other Findings in this Audit

  • 608524 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.09M