Audit 371035

Federal Program – COVID-19 – Provider Relief Fund, ALN 93.498, Award Year 2021 Criteria or Specific Requirement – Activities Allowed/Allowable Costs and Reporting – Pub. L. No. 116-136, 134 Stat. 563 Condition – Expenditures reported to HRSA were not in accordance with Pub. L. No. 116-136, 134 Stat. 563. Questioned Costs – $1,828,575 was the amount of expenses determined to be over-reported to the federal program due to failure to reduce expenses by the Authority’s Medicare cost reimbursement percentage. This was calculated by multiplying total Provider Relief Fund expenses reported to HRSA for Period 1 by the Authority ($3,265,896) by the Authority’s Medicare cost reimbursement percentage (55.99%). Additionally, $55,476 was the amount determined to be over-reported to the federal program due to the inclusion of certain employee bonus expenses twice or the Authority’s inability to provide support for the expenditure. Context – The Authority did not reduce expenses included in the Authority’s portal submission by its Medicare cost reimbursement percentage resulting in a testing population that did not agree to expenses reported. Additionally, some employee expenses were included twice. Effect – Expenditures reported to HRSA were overstated. Cause – The Authority did not have effective internal control processes in place to ensure the accurate review and reporting of program expenditures. Changes to frequently asked questions and guidance from HRSA and management’s inexperience with the program requirements resulted in an error of expenditures under the program. Identification as a Repeat Finding, if Applicable – N/A Recommendation – The Authority should implement documented internal control processes specific to understanding the reporting of program expenditures, including review and oversight of data uploads prior to submission. Views of Responsible Officials and Planned Corrective Actions – The Authority will continue to monitor the Department of Health and Human Resources Provider Relief Fund General and Targeted Distribution Post-Payment Notice of Reporting Requirements and believes that it has sufficient additional unclaimed expenses and lost revenues to support the Provider Relief Funds received.