EIN: 061645027
UEI: KHFLGQQEMLF5
Audited by: Barnes, Dennig & Co, Ltd.
Oversight agency: 93 [Department of Health and Human Services]
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Data as of August 31, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on September 30, 2025. 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 March 30, 2026 (155 days ago).
What is a management decision? →Payroll expenses were charged to the award based on budget estimates. Cause: The Organization uses a spreadsheet, prepared annually, to document the allocation of personnel costs charged across federal and other awards and indirect cost centers. Time and effort reports were not maintained or reviewed to support the allocation of personnel costs. Effect: The Organization was unable to provide documentation of time and effort for personnel who were not 100% charged to the federal award. Questioned costs: None. Context: Total compensation charged to federal awards was tested for 11 out of 92 total employees charged to federal awards. 7 of the 9 employees tested were charged to multiple cost centers. Employees tested were not charged in excess of their compensation. However, there was no documentation of how the allocations were determined beyond budget estimates. Total personnel costs allocated to the Health Center Cluster were $2,887,641. Repeat finding: 2023-004 Recommendation: We recommend that the Organization implement periodic time and effort reports to track employee allocations among federal awards, non-federal awards and indirect cost centers. We recommend that time and effort reports be reviewed by employee supervisors to ensure employee allocations are reflective of actual work performed and payroll allocation changes are made timely to reflect changes in employee duties. All necessary adjustments should be made to financial records to reflect the final amount charged to the Federal award reflects actual work performed. Views of responsible officials and planned corrective actions: See attached corrective action plan.
Show full finding ▾Hide full finding ▴Finding 2024-002, Material Weakness, Allowable Costs Identification of federal program: U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 93.224 and 93.527 Health Center Program Cluster Criteria: 2 CFR 200.430(i) requires the auditee to establish and maintain effective internal control over the allocation of personnel expenses whereby charges to Federal awards for personnel-related expenditures are supported by official records of the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Budget estimates alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that: The non-federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a Federal award based on budget estimates. All necessary adjustment must be made such that the final amount charged to the Federal award is accurate, allowable and properly allocated. Condition: Payroll expenses were charged to the award based on budget estimates. Cause: The Organization uses a spreadsheet, prepared annually, to document the allocation of personnel costs charged across federal and other awards and indirect cost centers. Time and effort reports were not maintained or reviewed to support the allocation of personnel costs. Effect: The Organization was unable to provide documentation of time and effort for personnel who were not 100% charged to the federal award. Questioned costs: None. Context: Total compensation charged to federal awards was tested for 11 out of 92 total employees charged to federal awards. 7 of the 9 employees tested were charged to multiple cost centers. Employees tested were not charged in excess of their compensation. However, there was no documentation of how the allocations were determined beyond budget estimates. Total personnel costs allocated to the Health Center Cluster were $2,887,641. Repeat finding: 2023-004 Recommendation: We recommend that the Organization implement periodic time and effort reports to track employee allocations among federal awards, non-federal awards and indirect cost centers. We recommend that time and effort reports be reviewed by employee supervisors to ensure employee allocations are reflective of actual work performed and payroll allocation changes are made timely to reflect changes in employee duties. All necessary adjustments should be made to financial records to reflect the final amount charged to the Federal award reflects actual work performed. Views of responsible officials and planned corrective actions: See attached corrective action plan.
Material Weakness, Allowable Costs- The following steps have been taken or will be taken to address Finding 2024-002: • Shalom Health Care Center, Inc. has been working on updating federal grant draws within the timeframe of payroll and not monthly. • Shalom Health Care Center, Inc. will also prepare semiannual attestation for management to review staff allocations. Contact Michael A. Nino, Chief Financial Officer anino@shalomhealthcenter.org 317-269-7198
2023-004
FAC accepted this audit on December 17, 2024 — management decision was due June 17, 2025.
The Organization was unable to generate reports from its accounting system detailing expenditures incurred by federal award. In addition, the Organization was also unable to provide reports distinguishing federal award expenditures from non-federal award expenditures. Effect: Management drew down federal funds based on payroll estimations. Payroll expenses had to be manually compiled for the entire year to substantiate personnel costs charged to all grants. Management created spreadsheets to identify the details of non-payroll expenditures incurred under federal awards. Cause: A significant amount of payroll and other expenses were not coded to grants within the accounting system. Time records and invoices allocated to specific grants were not entered into the accounting system under the actual account segment for the funding source and were left in the general operating fund. Staff turnover in the fiscal department contributed to the breakdown in internal controls and process. Questioned costs: None Repeat finding: Yes Recommendation: We recommend that the Organization implement accounting processes and controls over financial reporting to ensure accurate financial reporting. Oversight responsibilities should include review of financial reporting by grants (segments) to verify proper posting and allocation of costs. Views of responsible officials and planned corrective actions: See attached corrective action plan.
Show full finding ▾Hide full finding ▴Finding 2023-001, Material Weakness - Allowable Costs and Cash Management Identification of federal program : U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 93.224 and 93.527 Health Center Program Cluster Criteria: 2CFR200.302(b) requires federal award recipients to maintain a financial management system that provides for the identification of all federal awards received and expended as well as accurate, current and complete disclosure of the financial results of each federal award program in addition to comparison of expenditures with budget amounts for each federal award. Condition: The Organization was unable to generate reports from its accounting system detailing expenditures incurred by federal award. In addition, the Organization was also unable to provide reports distinguishing federal award expenditures from non-federal award expenditures. Effect: Management drew down federal funds based on payroll estimations. Payroll expenses had to be manually compiled for the entire year to substantiate personnel costs charged to all grants. Management created spreadsheets to identify the details of non-payroll expenditures incurred under federal awards. Cause: A significant amount of payroll and other expenses were not coded to grants within the accounting system. Time records and invoices allocated to specific grants were not entered into the accounting system under the actual account segment for the funding source and were left in the general operating fund. Staff turnover in the fiscal department contributed to the breakdown in internal controls and process. Questioned costs: None Repeat finding: Yes Recommendation: We recommend that the Organization implement accounting processes and controls over financial reporting to ensure accurate financial reporting. Oversight responsibilities should include review of financial reporting by grants (segments) to verify proper posting and allocation of costs. Views of responsible officials and planned corrective actions: See attached corrective action plan.
The following steps have been taken or will be taken to address Finding 2023-001: Shalom Health Care Center, Inc. has made some changes in how the draws are done with each payroll versus previously per month. Shalom has also hired new staff to help keep up with the grants and payrolls and entering data into the accounting system, as we had previously had turnover and were using temp services for some of the prior year. Contact Person: Michael A. Nino, Chief Financial Shalom Health Care Center, Inc. anino@shalomhealthcenter.org 317-269-7198
2022-002
Finding 2023-003, Significant Deficiency Over Financial Reporting Identification of federal program : U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 93.224 and 93.527 Health Center Program Cluster Criteria : In accordance with 2CFR200.510(b) Auditees are responsible for the preparation of the Schedule of Expenditures of Federal Awards (SEFA) that includes the total federal awards expended. The auditee is also responsible to ensure the SEFA includes cluster names, a list of individual Federal programs within the clusters and total for the clusters. Condition : The Organization provided a SEFA that did not identify the Health Center Program Cluster and all federal awards included within that cluster. In addition, the SEFA included an award that was not a federal award. Cause : Management has not implemented effective internal controls surrounding the preparation of the SEFA. Potential effect : Failure to appropriately identify total federal awards expended and clusters could result in inappropriate selection of major programs or inaccurate audit coverage needed in a single audit. Questioned costs: None. Recommendation: We recommend that the Organization implement accounting processes and controls over financial reporting to ensure accurate preparation of the SEFA. Views of responsible officials and planned corrective actions: Although Management agrees with what is written and recommended, Management disagrees with the identification of this issue as a significant deficiency. In the past, the SEFA was conducted by auditors. The regulation changed and for the last three years Shalom has been preparing for the SEFA. During these three years, previous auditors have made changes and adjustments but never identified this matter as a significant deficiency. Therefore, Management believes this matter should be a note rather than a significant weakness.
Show full finding ▾Hide full finding ▴Finding 2023-003, Significant Deficiency Over Financial Reporting Identification of federal program : U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 93.224 and 93.527 Health Center Program Cluster Criteria : In accordance with 2CFR200.510(b) Auditees are responsible for the preparation of the Schedule of Expenditures of Federal Awards (SEFA) that includes the total federal awards expended. The auditee is also responsible to ensure the SEFA includes cluster names, a list of individual Federal programs within the clusters and total for the clusters. Condition : The Organization provided a SEFA that did not identify the Health Center Program Cluster and all federal awards included within that cluster. In addition, the SEFA included an award that was not a federal award. Cause : Management has not implemented effective internal controls surrounding the preparation of the SEFA. Potential effect : Failure to appropriately identify total federal awards expended and clusters could result in inappropriate selection of major programs or inaccurate audit coverage needed in a single audit. Questioned costs: None. Recommendation: We recommend that the Organization implement accounting processes and controls over financial reporting to ensure accurate preparation of the SEFA. Views of responsible officials and planned corrective actions: Although Management agrees with what is written and recommended, Management disagrees with the identification of this issue as a significant deficiency. In the past, the SEFA was conducted by auditors. The regulation changed and for the last three years Shalom has been preparing for the SEFA. During these three years, previous auditors have made changes and adjustments but never identified this matter as a significant deficiency. Therefore, Management believes this matter should be a note rather than a significant weakness.
The following steps have been taken or will be taken to address Finding 2023-003: Shalom Health Care Center, inc. has been working with the auditor and reviewing the guidance for the preparation of the SEFA. Shalom will ensure that all program clusters are properly listed. (Management did challenge this as being a Significant Deficiency and believes that it should be listed as a note). Contact Person: Michael A. Nio, Chief Financial Shalom Health Care Center, Inc. anino@shalomhealthcenter.org 317-269-7198
Payroll expenses were charged to the award based on budget estimates. Cause: The Organization uses a spreadsheet, prepared annually, to document the allocation of personnel costs charged across federal and other awards and indirect cost centers. Time and effort reports were not maintained or reviewed to support the allocation of personnel costs. Effect: The Organization was unable to provide documentation of time and effort for personnel who were not 100% charged to the federal award. Questioned costs: None. Context: Total compensation charged to federal awards was tested for 9 out of 88 total employees charged to federal awards. 7 of the 9 employees tested were charged to more than one federal award, non-federal awards or other indirect cost centers. Total personnel costs allocated to the Health Center Cluster were $3,800,769. Recommendation: We recommend that the Organization implement periodic time and effort reports to track employee allocations among federal awards, non-federal awards and indirect cost centers. We recommend that time and effort reports be reviewed by employee supervisors to ensure employee allocations are reflective of actual work performed and payroll allocation changes are made timely to reflect changes in employee duties. All necessary adjustments should be made to financial records to reflect the final amount charged to the Federal award reflects actual work performed. Views of responsible officials and planned corrective actions: See attached corrective action plan.
Show full finding ▾Hide full finding ▴Finding 2023-004, Material Weakness, Allowable Costs Identification of federal program : U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES 93.224 and 93.527 Health Center Program Cluster Criteria: 2 CFR 200.430(i) requires the auditee to establish and maintain effective internal control over the allocation of personnel expenses whereby charges to Federal awards for personnel-related expenditures are supported by official records of the distribution of the employee's salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. Budget estimates alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that: The non-federal entity's system of internal controls includes processes to review after-the-fact interim charges made to a Federal award based on budget estimates. All necessary adjustment must be made such that the final amount charged to the Federal award is accurate, allowable and properly allocated. Condition: Payroll expenses were charged to the award based on budget estimates. Cause: The Organization uses a spreadsheet, prepared annually, to document the allocation of personnel costs charged across federal and other awards and indirect cost centers. Time and effort reports were not maintained or reviewed to support the allocation of personnel costs. Effect: The Organization was unable to provide documentation of time and effort for personnel who were not 100% charged to the federal award. Questioned costs: None. Context: Total compensation charged to federal awards was tested for 9 out of 88 total employees charged to federal awards. 7 of the 9 employees tested were charged to more than one federal award, non-federal awards or other indirect cost centers. Total personnel costs allocated to the Health Center Cluster were $3,800,769. Recommendation: We recommend that the Organization implement periodic time and effort reports to track employee allocations among federal awards, non-federal awards and indirect cost centers. We recommend that time and effort reports be reviewed by employee supervisors to ensure employee allocations are reflective of actual work performed and payroll allocation changes are made timely to reflect changes in employee duties. All necessary adjustments should be made to financial records to reflect the final amount charged to the Federal award reflects actual work performed. Views of responsible officials and planned corrective actions: See attached corrective action plan.
The following steps have been taken or will be taken to address Finding 2023-004: Shalom Health Care Center, Inc. has been working on updating federal grant draws within the timeframe of payroll and not monthly. Shalom Health Care Center, Inc. will also prepare semiannual attestation for management to review staff allocations. Contact Person: Michael A. Nino, Chief Financial Shalom Health Care Center, Inc. anino@shalomhealthcenter.org 317-269-7198
FAC accepted this audit on November 2, 2023 — management decision was due May 2, 2024.
Grantees are required to maintain an adequate internal control system to support timely and accurate financial reporting. The accounting system must provide for separate identification of federal and non-federal transactions. Effect: Reporting from the accounting system could not provide an adequate audit trail between payroll timesheets and invoices to expenses drawn against grants for reimbursement. Estimations were used for reimbursement requests. Payroll expenses had to be manually compiled for the entire year to substantiate personnel costs charged to all grants. Estimated costs not related to payroll had to be compared to actual invoices paid to ensure estimation did not exceed the actual costs incurred. Cause: A significant amount of payroll and other expenses were not coded to grants within the accounting system. Time records and invoices allocated to specific grants were not entered into the accounting system under the actual account segment for the funding source and were left in the general operating fund. Staff turnover in the fiscal department contributed to the breakdown in internal controls and process. Recommendation: We recommend that the Organization implement accounting processes and controls over financial reporting to ensure accurate financial reporting. Oversight responsibilities should include review of financial reporting by grants (segments) to verify proper posting andallocation of costs. Views of Responsible Officials and Planned Corrective Action: The following steps have been taken or will be taken to address Finding 2022-002: Shalom Health Care Center, Inc. is reclassifying payroll allocations to better align with the departments and funding services. Shalom Health Care Center, Inc. is working with the payroll company to match the allocations in the payroll system to better identify the cost allocation of payroll and funding source.
Show full finding ▾Hide full finding ▴2022-002 Federal Program Name: Health Center Program Cluster Federal Agency: U.S. Department of Health and Human Services FALN Title and Number: Health Center Program Cluster, FALN 93.224 and 93.527 Criteria or Specific Requirement: Material Weakness Over Financial Reporting – Allowable Costs and Cash Management Condition: Grantees are required to maintain an adequate internal control system to support timely and accurate financial reporting. The accounting system must provide for separate identification of federal and non-federal transactions. Effect: Reporting from the accounting system could not provide an adequate audit trail between payroll timesheets and invoices to expenses drawn against grants for reimbursement. Estimations were used for reimbursement requests. Payroll expenses had to be manually compiled for the entire year to substantiate personnel costs charged to all grants. Estimated costs not related to payroll had to be compared to actual invoices paid to ensure estimation did not exceed the actual costs incurred. Cause: A significant amount of payroll and other expenses were not coded to grants within the accounting system. Time records and invoices allocated to specific grants were not entered into the accounting system under the actual account segment for the funding source and were left in the general operating fund. Staff turnover in the fiscal department contributed to the breakdown in internal controls and process. Recommendation: We recommend that the Organization implement accounting processes and controls over financial reporting to ensure accurate financial reporting. Oversight responsibilities should include review of financial reporting by grants (segments) to verify proper posting andallocation of costs. Views of Responsible Officials and Planned Corrective Action: The following steps have been taken or will be taken to address Finding 2022-002: Shalom Health Care Center, Inc. is reclassifying payroll allocations to better align with the departments and funding services. Shalom Health Care Center, Inc. is working with the payroll company to match the allocations in the payroll system to better identify the cost allocation of payroll and funding source.
Shalom Health Care Center, Inc. is reclassifying payroll allocations to better align with the departments and funding sources. Shalom Health Care Center, Inc. is working with the payroll company to match the allocations in the payroll system to better identify cost allocation of payroll and funding source.
FAC accepted this audit on September 29, 2022 — management decision was due March 29, 2023.
FAC accepted this audit on September 12, 2021 — management decision was due March 12, 2022.
Application of the sliding fee discount was not approriately applied
Show full finding ▾Hide full finding ▴Application of the sliding fee discount was not approriately applied
Management continues to evaluate current controls related to the application of the sliding fee discount to ensure that appropriate review is completed and discounts are applied correctly.
Elements of program income were not appropriately reported in the annual Federal Financial Report
Show full finding ▾Hide full finding ▴Elements of program income were not appropriately reported in the annual Federal Financial Report
Management continues to evaluate current controls related to federal financial reporting requirements to ensure that amounts are appropriately stated.
FAC accepted this audit on September 28, 2020 — management decision was due March 28, 2021.
FAC accepted this audit on January 5, 2020 — management decision was due July 5, 2020.
GSA_MIGRATION
Show full finding ▾Hide full finding ▴GSA_MIGRATION
GSA_MIGRATION
FAC accepted this audit on September 26, 2018 — management decision was due March 26, 2019.
FAC accepted this audit on February 15, 2018 — management decision was due August 15, 2018.
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