2023-005 Inaccurate Tracking and Reporting of Federal Expenditures
COVID-19 Provider Relief Fund – CFDA #93.498
Condition: During the compliance testing of the Uniform Guidance “Allowable Costs/Cost Principles” and “Reporting” requirements, the following exceptions were noted regarding the initial...
2023-005 Inaccurate Tracking and Reporting of Federal Expenditures
COVID-19 Provider Relief Fund – CFDA #93.498
Condition: During the compliance testing of the Uniform Guidance “Allowable Costs/Cost Principles” and “Reporting” requirements, the following exceptions were noted regarding the initial report of expenditures reported to HRSA for period 5:
• There were no expenditures between January 1, 2020 and June 30, 2022.
• The report to HRSA indicated that $1,461,109 was spent during the fiscal year 2023 however only $558,598 was allocated to Provider Relief Funds on the Corporations general ledger.
• The amounts indicated on the report to HRSA as being qualified expenditures did not appear to have been based on specific needs to prevent, prepare for and respond to coronavirus:
o There was not a clear cost allocation documented to allocate items such as mortgage/rent, insurance, utilities or other general administration.
o Personnel costs and related fringe benefits appeared to be remaining amounts not already reimbursed by other grants/programs rather than based on time spent specific to coronavirus.
o Supplies submitted were not clearly identifiable as necessary to prevent, prepare for and respond to coronavirus.
Upon notification of the above compliance issues, management provided an updated detail of expenses incurred in the period of availability (January 1, 2020 through June 30, 2023) indicating a total of $1,405,474 spent on qualified expenditures during period 5. This detail included a cost allocation based on square footage dedicated to coronavirus areas of each facility to determine cost allocation of the administration/overhead amounts. Items reported in the new population were found ineligible as follows:
• Costs from April 2020 through April 2021 of $283,525 appeared to have been previously submitted as support for Period 1.
• Equipment purchased for $51,794 was found to have been reimbursed by another funding source.
• $407,277 in personnel and fringe benefits were not clearly identifiable as related to the prevention of or preparation for coronavirus.
Action Taken:
• CHESI has compiled the updated list of eligible expenditures and related support and will immediately initiate correspondence with a HRSA representative to implement a corrective action plan.
Anticipated Date of Completion and Name of Contact Person:
March 31, 2025 – J.P. Champion, Chief Financial Officer