Audit 25206

2022-001- Activities Allowed or Unallowed; Allowable Costs/Cost Principles - Noncompliance Information on Federal Program: U.S Department of Health and Human Service, Award Listing Number 93.498. Criteria: The Health Resources and Services Administration (HRSA) provided recipients of the U.S. Department of Health and Human Services COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Program (PRF Program) with a user guide to assist recipients with the requirements of the allowable reimbursable cost under the PRF Program. The user guide defines an allowable expense under the Provider Relief Fund is a necessary and reasonable expense that is used to prevent, prepare for, and respond to COVID-19. Condition: During our testing of disbursements, we noted that two of the forty expenditures sampled are not an allowable expense and were incorrectly submitted for reimbursement. These expenditures were not considered reasonable and necessary to prevent, prepare for or respond to COVID-19. Questioned Costs: Known questioned costs of $127. Unable to determine unknown questioned costs. Cause: Policies and procedures were not appropriately adhered to in certain instances to ensure that supporting documentation was maintained correctly to evidence that costs were allowable and that an appropriate level of review and approval was completed prior to charging costs to the federal program. Effect: Unallowable expenses were submitted for reimbursement and were claimed as federal expenditures. Context: We tested a sample of forty expenditures and found two exceptions as noted in the condition. We noted the two exceptions totaled $127 of expenditures that are unallowable per the HRSA user guide. This is a condition identified per review of the Company?s compliance with specified requirements using a statistically valid sample. The overall effect on the Company?s Period 4 portal submission would not have changed, as the Company has sufficient unused lost revenues to be reported on the Company?s Period 4 portal submission in lieu of the questioned costs. Recommendation: We recommend that the Company ensure its policies and procedures are followed on a consistent basis. Views of Responsible Officials: The Company agrees with the finding identified. The Company?s response to the finding is described in the accompanying management?s corrective action plan.

2022-001- Activities Allowed or Unallowed; Allowable Costs/Cost Principles - Noncompliance Information on Federal Program: U.S Department of Health and Human Service, Award Listing Number 93.498. Criteria: The Health Resources and Services Administration (HRSA) provided recipients of the U.S. Department of Health and Human Services COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Program (PRF Program) with a user guide to assist recipients with the requirements of the allowable reimbursable cost under the PRF Program. The user guide defines an allowable expense under the Provider Relief Fund is a necessary and reasonable expense that is used to prevent, prepare for, and respond to COVID-19. Condition: During our testing of disbursements, we noted that two of the forty expenditures sampled are not an allowable expense and were incorrectly submitted for reimbursement. These expenditures were not considered reasonable and necessary to prevent, prepare for or respond to COVID-19. Questioned Costs: Known questioned costs of $127. Unable to determine unknown questioned costs. Cause: Policies and procedures were not appropriately adhered to in certain instances to ensure that supporting documentation was maintained correctly to evidence that costs were allowable and that an appropriate level of review and approval was completed prior to charging costs to the federal program. Effect: Unallowable expenses were submitted for reimbursement and were claimed as federal expenditures. Context: We tested a sample of forty expenditures and found two exceptions as noted in the condition. We noted the two exceptions totaled $127 of expenditures that are unallowable per the HRSA user guide. This is a condition identified per review of the Company?s compliance with specified requirements using a statistically valid sample. The overall effect on the Company?s Period 4 portal submission would not have changed, as the Company has sufficient unused lost revenues to be reported on the Company?s Period 4 portal submission in lieu of the questioned costs. Recommendation: We recommend that the Company ensure its policies and procedures are followed on a consistent basis. Views of Responsible Officials: The Company agrees with the finding identified. The Company?s response to the finding is described in the accompanying management?s corrective action plan.