EIN: 133524533
UEI: R1UJKSNN8PS7
Audited by: PKF O'Connor Davies, LLP
Oversight agency: 14 [Department of Housing and Urban Development]
Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on October 10, 2024. 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 April 10, 2025 (505 days ago).
What is a management decision? →Finding 2023-001: Allowable Cost/Cost Principles – Unsupported PRF expenses Federal Agencies U.S. Department of Health and Human Services Program Name (Federal Assistance Listing Number) COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (93.498) Criteria or specific requirement Guidance provided by the Health Resources & Services Administration (“HRSA”) for the PRF program requires Providers to maintain supporting documentation which demonstrates that costs which incurred during the Period of Availability and to ensure that adequate documentation is maintained. Condition The Center reported healthcare related expenses of $219,968 in the PRF Period 5 report. Of these costs, management could not locate supporting documentation for $73,127 of expenses. Therefore, total reported costs reported exceeded supported expenses by $73,127 which are considered to be unallowable costs. Cause Due to changes in management personnel, invoices supporting $73,127 in healthcare related expenses submitted for PRF could not be located by the new management team. Effect Although the Center reported expenses that are deemed to be unallowable costs, management also reported lost revenues that exceeded amounts provided by HRSA during PRF reporting period 5 and prior that can be used to replace the unallowable costs. Questioned Costs None Context We requested a listing of healthcare related expenses which were used to prepare the Period 5 submission. Management disclosed that they could not locate support for $73,127 of costs on the submission. We have tested remaining expenses without exceptions. Identification of a repeat finding No Recommendation Management should contact HRSA and amend their PRF reporting to replace $73,127 of healthcare related costs with excess lost revenue. Views of responsible officials See corrective action plan
Show full finding ▾Hide full finding ▴Finding 2023-001: Allowable Cost/Cost Principles – Unsupported PRF expenses Federal Agencies U.S. Department of Health and Human Services Program Name (Federal Assistance Listing Number) COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (93.498) Criteria or specific requirement Guidance provided by the Health Resources & Services Administration (“HRSA”) for the PRF program requires Providers to maintain supporting documentation which demonstrates that costs which incurred during the Period of Availability and to ensure that adequate documentation is maintained. Condition The Center reported healthcare related expenses of $219,968 in the PRF Period 5 report. Of these costs, management could not locate supporting documentation for $73,127 of expenses. Therefore, total reported costs reported exceeded supported expenses by $73,127 which are considered to be unallowable costs. Cause Due to changes in management personnel, invoices supporting $73,127 in healthcare related expenses submitted for PRF could not be located by the new management team. Effect Although the Center reported expenses that are deemed to be unallowable costs, management also reported lost revenues that exceeded amounts provided by HRSA during PRF reporting period 5 and prior that can be used to replace the unallowable costs. Questioned Costs None Context We requested a listing of healthcare related expenses which were used to prepare the Period 5 submission. Management disclosed that they could not locate support for $73,127 of costs on the submission. We have tested remaining expenses without exceptions. Identification of a repeat finding No Recommendation Management should contact HRSA and amend their PRF reporting to replace $73,127 of healthcare related costs with excess lost revenue. Views of responsible officials See corrective action plan
Finding Reference Number 2023-001 1. Name of contact person responsible for corrective action Annmarie Covone, Executive Vice President/Chief Financial Officer 2. Corrective action planned Our organization will reach out to HRSA to request permission to resubmit our PRF period 5 submission of health care expenses as lost revenue. 3. Anticipated Completion Date This is anticipated to be completed in October 2024 subject to HRSA’s permission to resubmit our Period 5 submission. 4. If the client does not agree with the findings or believes corrective action is not required, include an explanation and specific reasons We agree with Finding Reference No. 2023-001 Contact Information Annmarie Covone Executive Vice President/Chief Financial Officer 205 Lexington Avenue, 2nd Floor, New York, NY 10016 P (646) 633-4702 acovone@archcare.org
Finding 2023-002: Late filing Federal Agencies U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services Program Name (Federal Assistance Listing Number) Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities (14.129) COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (93.498) Criteria or specific requirement The Uniform Guidance and HUD requires the single audit to be filed at the earliest of 9 months or prior of year end or 30 days after issuance of the Uniform Guidance audit report. Condition Uniform Grant Guidance Financial statements were issued after the Uniform Guidance and HUD’s reporting requirement. Cause Due to changes in management and limited staffing, management was unable to locate all supporting documentation for the single audit testing timely. Accordingly the financial statement audit was completed after the 9-month reporting requirement. Effect Financial statement issuance was not in compliance with the Uniform Guidance and HUD’s reporting requirements. Questioned Costs None Context We requested certain documents to support our account analyses and testing. Due to a change in management of the Center, certain documents requested were either missing or could not be located timely by current management that led to a delay in issuing the financial statements within the required time frame. Identification of a repeat finding No Recommendation We recommend that all required audit schedules be completed in sufficient time to allow for completion of the single audit in sufficient time. Views of responsible officials See corrective action plan
Show full finding ▾Hide full finding ▴Finding 2023-002: Late filing Federal Agencies U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services Program Name (Federal Assistance Listing Number) Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities (14.129) COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (93.498) Criteria or specific requirement The Uniform Guidance and HUD requires the single audit to be filed at the earliest of 9 months or prior of year end or 30 days after issuance of the Uniform Guidance audit report. Condition Uniform Grant Guidance Financial statements were issued after the Uniform Guidance and HUD’s reporting requirement. Cause Due to changes in management and limited staffing, management was unable to locate all supporting documentation for the single audit testing timely. Accordingly the financial statement audit was completed after the 9-month reporting requirement. Effect Financial statement issuance was not in compliance with the Uniform Guidance and HUD’s reporting requirements. Questioned Costs None Context We requested certain documents to support our account analyses and testing. Due to a change in management of the Center, certain documents requested were either missing or could not be located timely by current management that led to a delay in issuing the financial statements within the required time frame. Identification of a repeat finding No Recommendation We recommend that all required audit schedules be completed in sufficient time to allow for completion of the single audit in sufficient time. Views of responsible officials See corrective action plan
Finding Reference Number 2023-002 1. Name of contact person responsible for corrective action Annmarie Covone, Executive Vice President/Chief Financial Officer 2. Corrective action planned Management changes caused delays in locating support for the single audit testing. Accordingly, the new management anticipates that these matters will not repeat themselves in the future periods and the audited financial statements will be submitted timely. 3. Anticipated Completion Date This will be completed in October 2024. 4. If the client does not agree with the findings or believes corrective action is not required, include an explanation and specific reasons We agree with Finding Reference No. 2023-002 Contact Information Annmarie Covone Executive Vice President/Chief Financial Officer 205 Lexington Avenue, 2nd Floor, New York, NY 10016 P (646) 633-4702 acovone@archcare.org
Finding 2023-003: Incorrect Reporting of Lost Revenue Federal Agencies U.S. Department of Health and Human Services Program Name (Federal Assistance Listing Number) COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (93.498) Criteria or specific requirement Lost revenue is required to be reported in the PRF reporting portal in accordance with one of the three methodologies included in the compliance supplement. Condition Management elected to report actual lost revenue in their PRF Period 5 submission, however lost revenue does not agree to management’s underlying general ledger or audited financial statements and could not be reconciled to reported amounts for all reporting periods from 2019 through June 30, 2023. Cause Due to changes in management and limited staffing, current management was unable to locate the reconciliations used to report lost revenue in the PRF Period 5 submission. Effect Although the Center reported lost revenue of $22,678,671, actual lost revenue per the Center’s general ledger and audited financial statements should have been $26,521,238. Accordingly, management understated lost revenue by $3,842,567. Questioned Costs None Context The Center’s changes in management personnel led to current management's inability to locate any reconciling items that may have been used by the predecessor management team in reporting period 5 lost revenues. Identification of a repeat finding No Recommendation Management should contact HRSA for permission to amend their PRF Period 5 submission. Views of responsible officials See corrective action plan
Show full finding ▾Hide full finding ▴Finding 2023-003: Incorrect Reporting of Lost Revenue Federal Agencies U.S. Department of Health and Human Services Program Name (Federal Assistance Listing Number) COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (93.498) Criteria or specific requirement Lost revenue is required to be reported in the PRF reporting portal in accordance with one of the three methodologies included in the compliance supplement. Condition Management elected to report actual lost revenue in their PRF Period 5 submission, however lost revenue does not agree to management’s underlying general ledger or audited financial statements and could not be reconciled to reported amounts for all reporting periods from 2019 through June 30, 2023. Cause Due to changes in management and limited staffing, current management was unable to locate the reconciliations used to report lost revenue in the PRF Period 5 submission. Effect Although the Center reported lost revenue of $22,678,671, actual lost revenue per the Center’s general ledger and audited financial statements should have been $26,521,238. Accordingly, management understated lost revenue by $3,842,567. Questioned Costs None Context The Center’s changes in management personnel led to current management's inability to locate any reconciling items that may have been used by the predecessor management team in reporting period 5 lost revenues. Identification of a repeat finding No Recommendation Management should contact HRSA for permission to amend their PRF Period 5 submission. Views of responsible officials See corrective action plan
Finding Reference Number 2023-003 1. Name of contact person responsible for corrective action Annmarie Covone, Executive Vice President/Chief Financial Officer 2. Corrective action planned 3. Our organization will reach out to HRSA to request permission to resubmit our PRF period 5 submission’s lost revenue so that lost revenue will agree to our underlying records and audited financial statements. 4. Anticipated Completion Date This will be completed in October 2024. 5. If the client does not agree with the findings or believes corrective action is not required, include an explanation and specific reasons We agree with Finding Reference No. 2023-003 Contact Information Annmarie Covone Executive Vice President/Chief Financial Officer 205 Lexington Avenue, 2nd Floor, New York, NY 10016 P (646) 633-4702 acovone@archcare.org
FAC accepted this audit on November 22, 2022 — management decision was due May 22, 2023.
Finding 2021-003: Allowable Cost/Cost Principles ? Unsupported PRF expenses Federal Agencies U.S. Department of Health and Human Services Program Name (Federal Assistance Listing Number) COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (93.498) Criteria or specific requirement Guidance provided by the Health Resources & Services Administration (?HRSA?) for the PRF program requires Providers to maintain supporting documentation which demonstrates that costs were incurred during the Period of Availability and to ensure that adequate documentation is maintained. Condition The Center reported personnel costs of $153,554, fringe benefit costs of $72,171, and healthcare related expenses of $1,673,858 for total of $1,899,583 in PRF period 1 report. Of these costs, we obtain listing for personnel and fringe costs of $147,739 and $69,438 from June 1, 2020 through June 30, 2021, and listing of healthcare related expenses of $1,532,719 for total of $1,749,896. Therefore, total reported costs exceeded supported expenses by $149,687 which are considered to be unallowable costs. Cause Due to financial condition of and limited staffing at the Center, the submission was prepared and submitted prior to a review by a reviewer familiar with the PRF program to ensure that all amounts reported are properly supported. Effect Although the Center reported expenses that are deemed to be unallowable costs, management also reported lost revenues that exceeded amounts provided by HRSA during PRF reporting period 1 that can be used to replace the unallowable costs in subsequent reporting period. Questioned Costs None Context We performed sampling of the list of paid invoices of $1,532,719 and noted that management provided sufficient support. We were unable to determine the accuracy of the data provided for personnel costs as the data was based on estimated results. Identification of a repeat finding No Recommendation Management should ensure that all charges related to COVID-19 be properly coded and tracked to ensure accurate reporting of PRF expenditures. Views of responsible officials See corrective action plan
Show full finding ▾Hide full finding ▴Finding 2021-003: Allowable Cost/Cost Principles ? Unsupported PRF expenses Federal Agencies U.S. Department of Health and Human Services Program Name (Federal Assistance Listing Number) COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (93.498) Criteria or specific requirement Guidance provided by the Health Resources & Services Administration (?HRSA?) for the PRF program requires Providers to maintain supporting documentation which demonstrates that costs were incurred during the Period of Availability and to ensure that adequate documentation is maintained. Condition The Center reported personnel costs of $153,554, fringe benefit costs of $72,171, and healthcare related expenses of $1,673,858 for total of $1,899,583 in PRF period 1 report. Of these costs, we obtain listing for personnel and fringe costs of $147,739 and $69,438 from June 1, 2020 through June 30, 2021, and listing of healthcare related expenses of $1,532,719 for total of $1,749,896. Therefore, total reported costs exceeded supported expenses by $149,687 which are considered to be unallowable costs. Cause Due to financial condition of and limited staffing at the Center, the submission was prepared and submitted prior to a review by a reviewer familiar with the PRF program to ensure that all amounts reported are properly supported. Effect Although the Center reported expenses that are deemed to be unallowable costs, management also reported lost revenues that exceeded amounts provided by HRSA during PRF reporting period 1 that can be used to replace the unallowable costs in subsequent reporting period. Questioned Costs None Context We performed sampling of the list of paid invoices of $1,532,719 and noted that management provided sufficient support. We were unable to determine the accuracy of the data provided for personnel costs as the data was based on estimated results. Identification of a repeat finding No Recommendation Management should ensure that all charges related to COVID-19 be properly coded and tracked to ensure accurate reporting of PRF expenditures. Views of responsible officials See corrective action plan
Finding No. 2021-003 ? Allowable Cost/Cost Principles ? Unsupported PRF expenses 1. Name of the contact person responsible for corrective action Garry de Leeuwerk, Senior Vice President of Finance/ CFO Lorri A. Senk, LNHA, Interim President and CEO 2. Corrective action planned Management recorded expenditures in the first PRF submission related to payroll expenses based on estimated time utilizing a calendar that was used to assign nurses who were required to perform COVID testing. Management was unaware at that time of requirements to record expenditures based on actual days spent by each nurse performing these tasks. In November 2022, a grid was created by management to verify the calendar maintained by Human Resource and Quality Assurance departments to monitor the time of the nurses and testing mandated by NYSDOH regulation. This grid demonstrated that expenditures reported in our submission approximate the actual amount calculated with minor variances. Management understands that there may be small variances between the reported expenditures which were based on amounts reported in our general ledger and the expenditures identified during the audit. We anticipate applying unrecognized lost revenue to supplement any of these costs that were deemed to be unallowable. 3. Anticipated completion date By March 31, 2023 during the period that the submission portal reopens. 4. If the client does not agree with the audit findings or believes corrective action is not required, include an explanation and specific reasons We agree with finding No. 2021-003. 5. The reference numbers assigned to the audit findings in the schedule of findings and questioned costs Finding No. 2021-003
Finding 2021-004: Reporting ? Improper PRF period 2 reporting and evidence of review of PRF reporting submissions Federal Agency U.S. Department of Health and Human Services Program Name (Federal Assistance Listing Number) COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (93.498) Criteria or specific requirement Guidance provided by HRSA pertaining to the Infection Control Targeted Distribution payment for the PRF program requires the Center to use these funds for infection control expenses that include diagnoses, testing, or care for individuals with possible or actual cases of COVID-19. This type of Targeted Distribution payment may not be used to reimburse lost revenues. Condition Management inadvertently omitted reporting qualified Infection Control expenses in the 2nd PRF reporting period that it had incurred during the period from April 2020 to December 31, 2021 as required by the Health Resources and Services Administration (?HRSA?). Management subsequently contacted HRSA in an attempt to correct the submission and is awaiting a response. Cause Due to monetary constraints, management did not hire an accountant to complete the preparation of the PRF reports that would have allowed the current preparer to assume the role of a reviewer which may have assisted management in identification of reporting mistakes prior to submission. Effect HRSA requires all funds that have not been spent based on reported amounts to be repaid back to HRSA. Management is awaiting a response from HRSA to modify the second reporting period submission that it expects would result in full earnings of the PRF funds received. Should HRSA refuse to allow a revision, then the Center would be required to remit all funds received under the 2nd reporting period back to HRSA. Questioned Costs $611,050 Context The Center?s financial condition and limited staffing resulted in report submissions that were not reviewed by a reviewer familiar with the reporting requirements related to the PRF submissions. Identification of a repeat finding No Recommendation We recommend that management segregate the reporting function and to ensure that it is familiarized with all PRF program reporting requirements Views of responsible officials See corrective action plan
Show full finding ▾Hide full finding ▴Finding 2021-004: Reporting ? Improper PRF period 2 reporting and evidence of review of PRF reporting submissions Federal Agency U.S. Department of Health and Human Services Program Name (Federal Assistance Listing Number) COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (93.498) Criteria or specific requirement Guidance provided by HRSA pertaining to the Infection Control Targeted Distribution payment for the PRF program requires the Center to use these funds for infection control expenses that include diagnoses, testing, or care for individuals with possible or actual cases of COVID-19. This type of Targeted Distribution payment may not be used to reimburse lost revenues. Condition Management inadvertently omitted reporting qualified Infection Control expenses in the 2nd PRF reporting period that it had incurred during the period from April 2020 to December 31, 2021 as required by the Health Resources and Services Administration (?HRSA?). Management subsequently contacted HRSA in an attempt to correct the submission and is awaiting a response. Cause Due to monetary constraints, management did not hire an accountant to complete the preparation of the PRF reports that would have allowed the current preparer to assume the role of a reviewer which may have assisted management in identification of reporting mistakes prior to submission. Effect HRSA requires all funds that have not been spent based on reported amounts to be repaid back to HRSA. Management is awaiting a response from HRSA to modify the second reporting period submission that it expects would result in full earnings of the PRF funds received. Should HRSA refuse to allow a revision, then the Center would be required to remit all funds received under the 2nd reporting period back to HRSA. Questioned Costs $611,050 Context The Center?s financial condition and limited staffing resulted in report submissions that were not reviewed by a reviewer familiar with the reporting requirements related to the PRF submissions. Identification of a repeat finding No Recommendation We recommend that management segregate the reporting function and to ensure that it is familiarized with all PRF program reporting requirements Views of responsible officials See corrective action plan
Finding No. 2021-004 ? Reporting ? Improper PRF period 2 reporting and evidence of review of PRF reporting submissions 1. Name of the contact person responsible for corrective action Garry de Leeuwerk, Senior Vice President of Finance/ CFO 2. Corrective action planned HRSA accepted the documents indicating that there were no provider relief expenses. Management is in contact with HRSA to request a resubmission of the second PRF submission that would demonstrate that the Center incurred sufficient infection control expenditures during the reporting period. Going forward all submissions will be reviewed by a separate reviewer prior to submission. 3. Anticipated completion date Until HRSA reopens the file, the data cannot be submitted for inclusion. 4. If the client does not agree with the audit findings or believes corrective action is not required, include an explanation and specific reasons We agree with finding No. 2021-004. 5. The reference numbers assigned to the audit findings in the schedule of findings and questioned costs Finding No. 2021-004.
Finding 2021-005 ? Late filing U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services Program Name (Federal Assistance Listing Number) Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities (14.129) COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (93.498) Criteria or Specific Requirement The Uniform Guidance and HUD requires the single audit to be filed within 9 months of year end or 30 days after the issuance of the Uniform Guidance Audit report. Condition Financial statements were issued after the Uniform Guidance and HUD?s reporting requirement. Cause Due to financial condition of and limited staffing at the Center, the Uniform Guidance financial statement audit was completed after the required 9-month reporting requirement. Effect Financial statement issuance was not in compliance with the Uniform Guidance and HUD?s reporting requirements. Questioned Costs None Context The Center?s financial condition and limited staffing led to late submission. Identification of a repeat finding No Recommendation We recommend that all required audit schedules be completed in sufficient time to allow for completion of the single audit in sufficient time. Views of responsible officials See Corrective action plan
Show full finding ▾Hide full finding ▴Finding 2021-005 ? Late filing U.S. Department of Housing and Urban Development U.S. Department of Health and Human Services Program Name (Federal Assistance Listing Number) Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities (14.129) COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (93.498) Criteria or Specific Requirement The Uniform Guidance and HUD requires the single audit to be filed within 9 months of year end or 30 days after the issuance of the Uniform Guidance Audit report. Condition Financial statements were issued after the Uniform Guidance and HUD?s reporting requirement. Cause Due to financial condition of and limited staffing at the Center, the Uniform Guidance financial statement audit was completed after the required 9-month reporting requirement. Effect Financial statement issuance was not in compliance with the Uniform Guidance and HUD?s reporting requirements. Questioned Costs None Context The Center?s financial condition and limited staffing led to late submission. Identification of a repeat finding No Recommendation We recommend that all required audit schedules be completed in sufficient time to allow for completion of the single audit in sufficient time. Views of responsible officials See Corrective action plan
Finding No. 2021-005 ? Late filing 1. Name(s) of the contact person(s) responsible for corrective action: a. Garry de Leeuwerk, Senior Vice President of Finance/ CFO b. Lorri A. Senk, Interim President and CEO 2. Corrective action planned Due to late completion of our year end audit which affected the start and conclusion of the Uniform Guidance audit, our submission was delayed. Management anticipates that these matters would not repeat themselves for our next reporting period and that the report would be submitted timely. 3. Anticipated completion date Future report will be submitted by the required due date(s). 4. If the client does not agree with the audit findings or believes corrective action is not required, include an explanation and specific reasons We agree with finding No. 2021-005. 5. The reference numbers assigned to the audit findings in the schedule of findings and questioned costs Finding No. 2021-005.
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