Audit 52177

Finding 2022-003. Program Name: Provider Relief Fund. Federal Assistance Listing Number: 93.498. Federal Agency: U.S. Department of Health and Human Services. Type of Finding: Significant Deficiency, Noncompliance. Compliance Requirement: Allowable Costs, Cost Principles. Condition: The Organization's internal controls over compliance related to disbursements were not effective. During the audit, it was determined that for 1 of 40 payroll expenditures tested, a portion was not an allowable COVID expense under the Department of Health and Human Services guidelines for the use of Provider Relief Funds. It was also determined that a portion of the non-payroll expenditures was not an allowable COVID expense under the Department of Health and Human Services guidelines for the use of Provider Relief Funds. The total amount of nonallowable costs was $12,751. Criteria: 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. Cause: Management oversight. Effect: The Organization is not in compliance with federal regulations and guidelines surrounding the use of the Provider Relief Funds. Recommendation: We recommend that management review all payroll and non-payroll expenditures for allowability under the criteria provided by the Department of Health and Human Services. However, it was noted that the Organization has enough excess COVID expenses to cover the non-allowable disbursements noted above and retain the grant funding. View of Responsible Officials: Management will review all payroll and non-payroll expenditures to determine allowability under the specific grant's rules and regulations.

Finding 2022-003. Program Name: Provider Relief Fund. Federal Assistance Listing Number: 93.498. Federal Agency: U.S. Department of Health and Human Services. Type of Finding: Significant Deficiency, Noncompliance. Compliance Requirement: Allowable Costs, Cost Principles. Condition: The Organization's internal controls over compliance related to disbursements were not effective. During the audit, it was determined that for 1 of 40 payroll expenditures tested, a portion was not an allowable COVID expense under the Department of Health and Human Services guidelines for the use of Provider Relief Funds. It was also determined that a portion of the non-payroll expenditures was not an allowable COVID expense under the Department of Health and Human Services guidelines for the use of Provider Relief Funds. The total amount of nonallowable costs was $12,751. Criteria: 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. Cause: Management oversight. Effect: The Organization is not in compliance with federal regulations and guidelines surrounding the use of the Provider Relief Funds. Recommendation: We recommend that management review all payroll and non-payroll expenditures for allowability under the criteria provided by the Department of Health and Human Services. However, it was noted that the Organization has enough excess COVID expenses to cover the non-allowable disbursements noted above and retain the grant funding. View of Responsible Officials: Management will review all payroll and non-payroll expenditures to determine allowability under the specific grant's rules and regulations.