Audit 55410

Finding: Reporting and Activities Allowed or Unallowed, Allowable Costs/Cost Principles Criteria: Reporting (45 CFR 75.342) and Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Pub. L. No. 116-136, 134 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622 and 623). SummitStone is required to prepare and submit period two Provider Relief Fund report to the U.S. Department of Health and Human Services. This report is to be prepared using accurate financial information and submitted by the deadline established. The funds cannot be used for expenses reimbursed or obligated to be reimbursed by other sources and must be eligible COVID-19 related expenses to prevent, prepare for, and respond to coronavirus. In addition, management is responsible for establishing and maintaining effective internal control over costs directly and indirectly charged to federal awards. Condition: SummitStone reported payroll specific extended leave expenditures within the HHS Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution period two report that were unable to be determined to be related to COVID-19. Questioned Cost: $15,055. Questioned costs were determined by obtaining the amount of extended leave charged to the program. Context: Expenses related to an extended leave code in the general ledger system were charged to the program and included in the report but the expenses were not eligible COVID-19 expenses. Out of a sample of 25, 12 items were tested with the extended leave code and all 12 were errors. Effect: Ineligible costs were charged to the program and reported inappropriately in the reporting portal. Cause: SummitStone did not have internal controls to identify specific expenses for amounts related to the payroll extended leave code for the period reported that were eligible COVID-19 expenses. Identification as a Repeat Finding: Not a repeat finding. Recommendation: Policies and procedures over federal grant accounting and reporting should be modified to ensure reports are prepared using complete and accurate information and SummitStone should implement additional controls over future reporting periods to help ensure guidance is followed. Views of responsible officials and planned corrective actions: See attached corrective action plan for SummitStone?s response to finding.

Finding: Reporting and Activities Allowed or Unallowed, Allowable Costs/Cost Principles Criteria: Reporting (45 CFR 75.342) and Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Pub. L. No. 116-136, 134 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622 and 623). SummitStone is required to prepare and submit period two Provider Relief Fund report to the U.S. Department of Health and Human Services. This report is to be prepared using accurate financial information and submitted by the deadline established. The funds cannot be used for expenses reimbursed or obligated to be reimbursed by other sources and must be eligible COVID-19 related expenses to prevent, prepare for, and respond to coronavirus. In addition, management is responsible for establishing and maintaining effective internal control over costs directly and indirectly charged to federal awards. Condition: SummitStone reported payroll specific extended leave expenditures within the HHS Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution period two report that were unable to be determined to be related to COVID-19. Questioned Cost: $15,055. Questioned costs were determined by obtaining the amount of extended leave charged to the program. Context: Expenses related to an extended leave code in the general ledger system were charged to the program and included in the report but the expenses were not eligible COVID-19 expenses. Out of a sample of 25, 12 items were tested with the extended leave code and all 12 were errors. Effect: Ineligible costs were charged to the program and reported inappropriately in the reporting portal. Cause: SummitStone did not have internal controls to identify specific expenses for amounts related to the payroll extended leave code for the period reported that were eligible COVID-19 expenses. Identification as a Repeat Finding: Not a repeat finding. Recommendation: Policies and procedures over federal grant accounting and reporting should be modified to ensure reports are prepared using complete and accurate information and SummitStone should implement additional controls over future reporting periods to help ensure guidance is followed. Views of responsible officials and planned corrective actions: See attached corrective action plan for SummitStone?s response to finding.