EIN: 042496563
UEI: HH7NH4ZE3JE3
Data as of August 23, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on July 9, 2023. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by January 9, 2024 (958 days ago).
What is a management decision? →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.
Show full finding ▾Hide full finding ▴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.
United States Department of Health and Human Services Ascentria Care Alliance respectfully submits the following corrective action plan for the year ended June 30, 2022. Audit period: July 1, 2021 ? June 30, 2022 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS United States Department of Health and Human Services 2022-001 COVID-19 Provider Relief Fund ? Assistance Listing No. 93.498 Recommendation: 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. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management will implement controls over reviewing and approving schedules to ensure that all schedules are complete before submission on the reporting portal. Name(s) of the contact person(s) responsible for corrective action: Sergio Plaza Planned completion date for corrective action plan: 6/30/2023 If the United States Department of Health and Human Services has questions regarding this plan, please call Sergio Plaza at 508-688-5608.
2021-001
FAC accepted this audit on September 28, 2022 — management decision was due March 28, 2023.
The Organization did not have a policy in place to provide reasonable assurance that federal and state relief grant revenue was accounted for in accordance with the terms of the grants; therefore, the potential exists that a material misstatement of the annual financial statements could occur and not be prevented, or detected and corrected, by the Organization?s internal controls. Questioned costs: None Context: In testing where the auditor tested the entire population of PRF reports submitted to HRSA, auditor noted a lack of internal controls with regards to all four reports tested. Cause: The Organization?s internal controls over this area under the management agreement, consisting of Excel spreadsheets classifying and documenting allowable uses for these funds, was not completed and reviewed on a timely basis. Effect: The lack of controls in place over federal and state relief grant accounting resulted in an overstatement of federal and state relief grant revenue of $185,751 as of June 30, 2021. Repeat Finding: No Recommendation: The Organization should evaluate their processes and controls over accounting for federal and state relief grant revenues, including the expertise of its internal staff, to determine whether additional controls can be implemented to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Views of responsible officials: There is no disagreement with the audit finding.
Show full finding ▾Hide full finding ▴2021 ? 002 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, 2020 ? June 30, 2021 2021 ? 002 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, 2020 ? June 30, 2021 Type of Finding: ? Material Weakness in Internal Control over Compliance Criteria or specific requirement: Internal controls should be in place to provide reasonable assurance that federal and state relief grant revenue is accounted for in accordance with the terms of the grants. Condition: The Organization did not have a policy in place to provide reasonable assurance that federal and state relief grant revenue was accounted for in accordance with the terms of the grants; therefore, the potential exists that a material misstatement of the annual financial statements could occur and not be prevented, or detected and corrected, by the Organization?s internal controls. Questioned costs: None Context: In testing where the auditor tested the entire population of PRF reports submitted to HRSA, auditor noted a lack of internal controls with regards to all four reports tested. Cause: The Organization?s internal controls over this area under the management agreement, consisting of Excel spreadsheets classifying and documenting allowable uses for these funds, was not completed and reviewed on a timely basis. Effect: The lack of controls in place over federal and state relief grant accounting resulted in an overstatement of federal and state relief grant revenue of $185,751 as of June 30, 2021. Repeat Finding: No Recommendation: The Organization should evaluate their processes and controls over accounting for federal and state relief grant revenues, including the expertise of its internal staff, to determine whether additional controls can be implemented to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Views of responsible officials: There is no disagreement with the audit finding.
United States Department of Health and Human Services Ascentria Care Alliance respectfully submits the following corrective action plan for the year ended June 30, 2021. Audit period: July 1, 2020 ? June 30, 2021 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS?FEDERAL AWARD PROGRAMS AUDITS United States Department of Health and Human Services 2021-001 COVID-19 Provider Relief Fund ? Assistance Listing No. 93.498 Recommendation: The Organization should evaluate their processes and controls over accounting for federal and state relief grant revenues, including the expertise of its internal staff, to determine whether additional controls can be implemented to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Lutheran Housing of Southbury was part of the management agreement between Sheehan and Ascentria that dissolved on July 15, 2021 when Ascentria management team took over the control of the entity operations as part of the Obligated Group acquisition / refinancing. The identified overstatements originated during the following accounting processes practiced by the former management team: ? Recognition of Federal and State relief grants revenue on the date received by the nursing home, instead of recognizing based on expenses incurred; ? Not following up with the state of Connecticut on the COVID-19 relief fund attestation prepared by Sheehan finance staff and signed by Ascentria officer. 1. On 04/19/21, Ascentria sends the attestation package to Sheehan to be submitted to the State of Connecticut; 2. On the same month, the revenue was recorded against receivables based on the attestation received by Sheehan; 3. The receivables were not assessed until the end of the fiscal year, during the audit review; 4. The State of Connecticut denied that the attestation was ever received by them denying any payment. It's our opinion that these two material misstatements of grant revenue recognition are isolated at the Skill Nursing Facilities. Since the acquisition date of July 15, 2021, Ascentria Finance team is working together with SNF?s financial team, training, and transitioning the team to Ascentria policies, procedures and processes. In addition, Ascentria is hiring a new Vice President of Finance that will have direct supervision of SNF?s finance team, working closely with both Finance and Operations to ensure that proper processes are followed accordingly to our internal controls. Ascentria Finance team has expertise over Federal and State Grants and Reliefs revenue recognition and constantly meet to share their expertise, trends, risks and opportunities associated to each division. We anticipate that the SNF?s Finance team will have better understanding of this newly revenue stream and be more prepared for FY22 audit review. Name(s) of the contact person(s) responsible for corrective action: Sergio Plaza Planned completion date for corrective action plan: January 2022 If the United States Department of Health and Human Services has questions regarding this plan, please call Sergio Plaza at 508.688.5608.
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