Single Audit Financial Statement Analysis

What Is It?

• Compilation of Single Audit Reports (or Audited Financial Statements) from all providers that have received sub awards from federal grants

• Evaluation of whether providers have complied with GAAS and DOH requirements

• Utilization of four defined measures to assess sub grantee risk as determined from a review of their audited financial statements

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Single Audit Financial Statement Analysis

What Measures are Evaluated and Reported?

• Current Ratio (current assets/current liabilities)

• Net Assets (total assets – total liabilities)

• Profit Margin (total revenues – total expenses)/total revenues

• Audit Findings and Status of Corrective Actions

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Single Audit Financial Statement Analysis

Why Do We Do This?

• Accountability • Compliance – Increase in submission of Audit Reports to Federal

Audit Clearinghouse from 34% to 61% from 2015 to 2016

• Common Reporting Within the Provider Community

• Evaluation Based on Generally Accepted Auditing Standards (GAAS)

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Single Audit Financial Statement Analysis

Example:

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Table A Agency Date

Report Due

Was Report Submitted On Time

Date Report Submitted

Does Provider Have Audit Findings

Audit Finding Outcome

Revenues >750k

Complies with GAAS?

Single Audit in Clearinghouse

Current Ratio

Net Assets (rounded)

Profit Margin

Aids Health Care Foundation 9/30/17 N 10/4/17 N N/A Y Y Y 1.94% 268.43M 3.52% Bread for the City 3/31/17 N 1/20/17 N N/A N Y N/A 1.39% 14,.64M 1.01% Casa Ruby, Inc. 6/30/16 N 1/30/18 N N/A N Y N/A .58% -79.5K 10.27% Childrens NTL Med. Ctr. 3/31/17 Y 4/28/16 Y CAP IN place Y Y Y 1.81% 774.1K 4.32%

Single Audit Financial Statement Analysis

Next Steps?

• Revision of Procedures for Tracking and Corrective Action Plans • Inclusion of Providers receiving Human Care Agreements funded

through federal grants in the next report • Consideration of expanding this analysis to include all Providers

receiving pass through federal funds throughout DOH

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Single Audit Financial Statement Analysis

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