Audit 52003

Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number 93.498 U.S. Department of Health and Human Services Criteria or Specific Requirement ? Reporting (45 CFR 75.342) and Activities Allowed/Unallowed and Allowable Costs/Cost Principles (Pub. L. No. 116-136, 134 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622, Pub. L. No. 116-260, Pub. L. No. 117-2) Condition ? The Organization is required to prepare and submit period two and three Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution reporting. These reports are to be prepared using accurate financial information and submitted by the deadline established. Allowable costs must be expenses that are unreimbursed by other sources and must be used to prevent, prepare for, and respond to coronavirus. Questioned Costs ? $1,394,783; Calculated as total expenses charged to PRF for Period 3. Context ? The period two and three PRF reports were tested. The Organization selected to apply expenses attributable to coronavirus for period three report. The original amounts reported on the period three report were expenses reimbursed by other sources Effect ? The Organization applied expenses to period three that did not meet the definition of qualifying expenses that are unreimbursed by other sources. Cause ? Internal controls were not in place to ensure the Organization correctly applied guidance issued by the Department of Health and Human Services (HHS). Identification as a Repeat Finding ? Not a repeat finding. Recommendation ? Policies and procedures over the program should be monitored to ensure reporting is prepared using complete and accurate information and to ensure that allowable costs are charged to the PRF program.

Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number 93.498 U.S. Department of Health and Human Services Criteria or Specific Requirement ? Reporting (45 CFR 75.342) and Activities Allowed/Unallowed and Allowable Costs/Cost Principles (Pub. L. No. 116-136, 134 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622, Pub. L. No. 116-260, Pub. L. No. 117-2) Condition ? The Organization is required to prepare and submit period two and three Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution reporting. These reports are to be prepared using accurate financial information and submitted by the deadline established. Allowable costs must be expenses that are unreimbursed by other sources and must be used to prevent, prepare for, and respond to coronavirus. Questioned Costs ? $1,394,783; Calculated as total expenses charged to PRF for Period 3. Context ? The period two and three PRF reports were tested. The Organization selected to apply expenses attributable to coronavirus for period three report. The original amounts reported on the period three report were expenses reimbursed by other sources Effect ? The Organization applied expenses to period three that did not meet the definition of qualifying expenses that are unreimbursed by other sources. Cause ? Internal controls were not in place to ensure the Organization correctly applied guidance issued by the Department of Health and Human Services (HHS). Identification as a Repeat Finding ? Not a repeat finding. Recommendation ? Policies and procedures over the program should be monitored to ensure reporting is prepared using complete and accurate information and to ensure that allowable costs are charged to the PRF program.