Audit 39316

Finding 2022-001 Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Provider Relief Fund Assistance Listing Number: 93.498 Federal Award Identification Number and Year: N/A - 2022 Award Period: July 1, 2020 ? December 31, 2020 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Compliance Requirement: Reporting Criteria or specific requirement: The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: Management submitted the report required by the Department of Health and Human Services (HHS) using actual expenditures versus using the intended lost revenue calculation. Questioned costs: None Context: The Organization's internal controls over compliance related to reporting were not effective. Management erroneously submitted the report using mortgage expenditures rather than using the intended lost revenue calculation. Cause: Management oversight Effect: The Organization's internal controls around reporting were not effective causing management to erroneously report to HHS. Repeat Finding: N/A Recommendation: We recommend that management request that HHS re-open the portal so as to resubmit based on the lost revenue calculation versus based on the original reporting method which used expenditures as a basis. If unable to re-open the portal, verify for next submission to HHS, if applicable, that the organization submits report based on the lost revenue calculation. We also recommend that a review take place over this reporting submission.Views of responsible officials and planned corrective actions: Management agreed with the above finding and attempted to re-open the HHS portal to accurately report based on the lost revenue calculation, but given the timing of the request, were denied by HHS. The Organization?s lost revenue calculation exceeds the Provider Relief Funds received. The error in the report was due to management?s misunderstanding of the instructions that expenditures needed to be reported, when no expenditures at all should have been reported in order for the lost revenue calculation portion of the portal to populate.

Finding 2022-001 Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Provider Relief Fund Assistance Listing Number: 93.498 Federal Award Identification Number and Year: N/A - 2022 Award Period: July 1, 2020 ? December 31, 2020 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Compliance Requirement: Reporting Criteria or specific requirement: The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Condition: Management submitted the report required by the Department of Health and Human Services (HHS) using actual expenditures versus using the intended lost revenue calculation. Questioned costs: None Context: The Organization's internal controls over compliance related to reporting were not effective. Management erroneously submitted the report using mortgage expenditures rather than using the intended lost revenue calculation. Cause: Management oversight Effect: The Organization's internal controls around reporting were not effective causing management to erroneously report to HHS. Repeat Finding: N/A Recommendation: We recommend that management request that HHS re-open the portal so as to resubmit based on the lost revenue calculation versus based on the original reporting method which used expenditures as a basis. If unable to re-open the portal, verify for next submission to HHS, if applicable, that the organization submits report based on the lost revenue calculation. We also recommend that a review take place over this reporting submission.Views of responsible officials and planned corrective actions: Management agreed with the above finding and attempted to re-open the HHS portal to accurately report based on the lost revenue calculation, but given the timing of the request, were denied by HHS. The Organization?s lost revenue calculation exceeds the Provider Relief Funds received. The error in the report was due to management?s misunderstanding of the instructions that expenditures needed to be reported, when no expenditures at all should have been reported in order for the lost revenue calculation portion of the portal to populate.