Audit 333527

Identification of the Federal Program: 93.498 COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Program Criteria: In accordance with 2 CFR Section 200.303, non-Federal entities must establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statues, regulations, and the terms and conditions of the Federal award. Additionally, in accordance with 2 CFR Section 200.403, costs must meet certain general criteria in order to be allowable under Federal awards. That criterion includes, but is not limited to, adequate documentation and be necessary and reasonable for the performance of the Federal award. Condition: During our audit of nonpayroll expenditures charged to the PRF Program, we noted that a total amount of $28,018 of professional service expenses was included twice in the total federal expenditures reported within the PRF Program. As such, the PRF Program’s total nonpayroll expenditures was overstated by $28,018 while the lost revenue claimed was understated by the same amount, wherein the net impact is zero. Cause: The Authority did not perform a thorough review of expenses charged to the program. Effect: The amounts reported to the Health Resources & Services Administration (HRSA) Provider Relief Fund Portal did not reflect the correct amounts within the nonpayroll expenditures and lost revenue for the PRF Program. However, the total amount claimed under PRF program was still correct. Questioned Costs: None. Context: The Authority inadvertently included professional service expenses of $28,018 twice within the nonpayroll expenditures rather than including the same amount under lost revenue. Repeat Finding: No. Recommendation: We recommend the Authority strengthen its policies, procedures and internal controls over the review of expenditures charged to the federal program. View of Responsible Officials: The Authority’s management agrees with the federal award finding identified in the audit. Management’s response to this finding is described in the accompanying management’s corrective action plan.

Identification of the Federal Program: 93.498 COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Program Criteria: In accordance with 2 CFR Section 200.512(a), the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period, adjusted for any extensions permitted by the Office of Management and Budget. Condition: The reporting package and data collection form for the year ended June 30, 2022, were not filed by the deadline of March 31, 2023, to the Federal Audit Clearinghouse. Cause: Although the schedule and notes thereto were prepared accurately and timely, additional time was required to comply fully with reporting on, and audit of, compliance requirements of the federal award programs. Effect: The reporting package and data collection form for the year ended June 30, 2022, were not submitted to the Federal Audit Clearinghouse in a timely manner. Questioned Costs: None. Context: The reporting package and data collection form for the year ended June 30, 2022, were submitted to the Federal Audit Clearinghouse after the due date of March 31, 2023. Repeat Finding: Yes. Recommendation: We recommend the Authority continue to refine policies, procedures and internal controls, including tracking and monitoring of reporting requirements, to ensure that the audit, reporting package, and data collection form are electronically filed with the Federal Audit Clearinghouse within the applicable deadline. View of Responsible Officials: The Authority’s management agrees with the federal award finding identified in the audit. Management’s response to this finding is described in the accompanying management’s corrective action plan.

Identification of the Federal Program: 93.498 COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Program Criteria: In accordance with 2 CFR Section 200.303, non-Federal entities must establish and maintain effective internal controls over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statues, regulations, and the terms and conditions of the Federal award. Additionally, in accordance with 2 CFR Section 200.403, costs must meet certain general criteria in order to be allowable under Federal awards. That criterion includes, but is not limited to, adequate documentation and be necessary and reasonable for the performance of the Federal award. Condition: During our audit of nonpayroll expenditures charged to the PRF Program, we noted that a total amount of $28,018 of professional service expenses was included twice in the total federal expenditures reported within the PRF Program. As such, the PRF Program’s total nonpayroll expenditures was overstated by $28,018 while the lost revenue claimed was understated by the same amount, wherein the net impact is zero. Cause: The Authority did not perform a thorough review of expenses charged to the program. Effect: The amounts reported to the Health Resources & Services Administration (HRSA) Provider Relief Fund Portal did not reflect the correct amounts within the nonpayroll expenditures and lost revenue for the PRF Program. However, the total amount claimed under PRF program was still correct. Questioned Costs: None. Context: The Authority inadvertently included professional service expenses of $28,018 twice within the nonpayroll expenditures rather than including the same amount under lost revenue. Repeat Finding: No. Recommendation: We recommend the Authority strengthen its policies, procedures and internal controls over the review of expenditures charged to the federal program. View of Responsible Officials: The Authority’s management agrees with the federal award finding identified in the audit. Management’s response to this finding is described in the accompanying management’s corrective action plan.

Identification of the Federal Program: 93.498 COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Program Criteria: In accordance with 2 CFR Section 200.512(a), the audit must be completed and the data collection form and reporting package must be submitted within the earlier of 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period, adjusted for any extensions permitted by the Office of Management and Budget. Condition: The reporting package and data collection form for the year ended June 30, 2022, were not filed by the deadline of March 31, 2023, to the Federal Audit Clearinghouse. Cause: Although the schedule and notes thereto were prepared accurately and timely, additional time was required to comply fully with reporting on, and audit of, compliance requirements of the federal award programs. Effect: The reporting package and data collection form for the year ended June 30, 2022, were not submitted to the Federal Audit Clearinghouse in a timely manner. Questioned Costs: None. Context: The reporting package and data collection form for the year ended June 30, 2022, were submitted to the Federal Audit Clearinghouse after the due date of March 31, 2023. Repeat Finding: Yes. Recommendation: We recommend the Authority continue to refine policies, procedures and internal controls, including tracking and monitoring of reporting requirements, to ensure that the audit, reporting package, and data collection form are electronically filed with the Federal Audit Clearinghouse within the applicable deadline. View of Responsible Officials: The Authority’s management agrees with the federal award finding identified in the audit. Management’s response to this finding is described in the accompanying management’s corrective action plan.