SHALOM PARK DBA SHALOM CARES

Federal agency: U.S. Department of Health and Human Services Federal program title: Provider Relief Fund AL Number: 93.498 Award Period: Phase 2 Reporting (7/1/2020 - 12/31/2021) Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: According to ?200.303 Internal Controls of 2 CFR Part 200, the non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. According to ?200.430 Compensation?personal services of 2 CFR Part 200, costs of compensation are allowable to the extent the costs are reasonable for the services rendered and conforms to the established written policy of the non-Federal entity consistently applied to both Federal and non-Federal activities and follows an appointment made in accordance with a non-Federal entity's laws and/or rules or written policies. According to the Organization?s internal process, the Controller reviews all approved Provider Relief Fund expenditures and enters the data within the Internal Covid Expense Detail Workbook for Provider Relief Fund Tracking. Condition: During our testing we noted 4 out of 48 payroll transactions reviewed did not agree to the charges entered to the Internal Covid Expense Detail Workbook that was utilized to track and support Provider Relief Fund Expenses. The transactions totaling an approximate $72, were input incorrectly during the review of the department?s internal payroll assignment tracking spreadsheets. Questioned costs: None Noted. Context: The incorrect payroll expenses were identified during payroll testing. The samples described above were statistically valid samples. Cause: Management oversight. Effect: The auditor noted instances of noncompliance. Noncompliance results in possible under or over charges to the grants. Repeat Finding: N/A Recommendation: We recommend that the department create a review and approval process for all internal resources developed for tracking federal fund activity. Views of responsible officials: There is no disagreement with the audit finding. Management?s response: Due to the immediate need of additional staffing support during COVID-19 Pandemic for infection control purposes in multiple areas, Shalom Park utilized existing staff to those much-needed areas. However, due to immediate implementation of staffing, proper utilization of time sheets or payroll systems was not utilized to track the hours. Also, due to the staffing crisis, there was no review of the data entered to identify those few manual data entry errors. To avoid these errors in future, Shalom Park will run any staff hours dedicated to COVID-19 related tasks through payroll and time sheets with a COVID-19 specific code where possible. Where it?s not possible to do so, Shalom Park will implement a log where each staff will sign and will have a review process in place. This corrective action will be in place as of the date of this letter. The Controller, Human Resources and Nursing Home Administrator are responsible for this corrective action moving forward.

Shalom Park agrees with the findings of the audit. Due to the immediate need of additional staffing support during COVID-19 pandemic for infection control purposes in multiple areas, Shalom Park utilized existing staff to those much-needed areas. However, due to immediate implementation of staffing, proper utilization of time sheets or payroll systems was not utilized to track the hours. Also, due to the staffing crisis, there was no review of the data entered to identify those few manual data entry errors. To avoid these errors in the future, Shalom Park will run any staff hours dedicated to COVID-19 related tasks through payroll and time sheets with a COVID-19 specific code where possible. Where it's not possible to do so, Shalom Park will implement a log where each staff will sign and will have a review process in place. This corrective action will be in place as of the date of this letter. The Controller, Director of Human Resources and Nursing Home Administrator are responsible for this corrective action moving forward. Marc Penner President/CEO