Audit 38479

Questioned Costs $ - Finding No. 2022-002: Reporting (Significant Deficiency) Federal Agency: Department of Health and Human Services AL Number and Title: 93.498 ? Provider Relief Fund Award Number: N/A Award Year: 2021 Repeat Finding? No Condition During our audit, we tested all period 2 infection control targeted distribution expenses reported and noted the reported amount included $84,800 in costs incurred prior to the period of availability. Criteria Management is responsible for establishing a system of internal controls that will assist in the Health System?s compliance with the program?s reporting requirements specified in the Health Resources and Service Administration Provider Relief Fund Distributions and American Rescue Plan Rural Distributions Post Payment Notice of Reporting Requirements. Effect Lack of review over the reporting of eligible infection control costs to the federal agency resulted in an overstatement of reported carryover costs for the program?s periods 2 and 3 targeted distributions. As there were other eligible expenses during period 2 to offset the $84,800 in costs incurred prior to the period of availability, the infection control costs reported were correct. However, the eligible carryover balances were overstated in the periods 2 and 3 reports submitted. Cause A review was not performed to ensure reported period 2 infection control costs were proper based on the guidance set forth in the Title 2 U.S. CFR Part 200, which resulted in reporting ineligible costs. Recommendation We recommend that management follow their review process over the reporting of all costs applied towards targeted distributions to ensure proper reporting to the federal agency. We also recommend and management plans to correct cumulative amounts reported in the period 4 submission. Views of Responsible Officials and Planned Corrective Actions Refer to the Corrective Action Plan (Unaudited) for the Health System?s response to the identified deficiency.

Questioned Costs $ - Finding No. 2022-002: Reporting (Significant Deficiency) Federal Agency: Department of Health and Human Services AL Number and Title: 93.498 ? Provider Relief Fund Award Number: N/A Award Year: 2021 Repeat Finding? No Condition During our audit, we tested all period 2 infection control targeted distribution expenses reported and noted the reported amount included $84,800 in costs incurred prior to the period of availability. Criteria Management is responsible for establishing a system of internal controls that will assist in the Health System?s compliance with the program?s reporting requirements specified in the Health Resources and Service Administration Provider Relief Fund Distributions and American Rescue Plan Rural Distributions Post Payment Notice of Reporting Requirements. Effect Lack of review over the reporting of eligible infection control costs to the federal agency resulted in an overstatement of reported carryover costs for the program?s periods 2 and 3 targeted distributions. As there were other eligible expenses during period 2 to offset the $84,800 in costs incurred prior to the period of availability, the infection control costs reported were correct. However, the eligible carryover balances were overstated in the periods 2 and 3 reports submitted. Cause A review was not performed to ensure reported period 2 infection control costs were proper based on the guidance set forth in the Title 2 U.S. CFR Part 200, which resulted in reporting ineligible costs. Recommendation We recommend that management follow their review process over the reporting of all costs applied towards targeted distributions to ensure proper reporting to the federal agency. We also recommend and management plans to correct cumulative amounts reported in the period 4 submission. Views of Responsible Officials and Planned Corrective Actions Refer to the Corrective Action Plan (Unaudited) for the Health System?s response to the identified deficiency.