Finding Text
2021-004 Department of Health and Human Services
CFDA #93.498
COVID-19 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution
Applicable Federal Award Number and Year – Period 1 TIN #381649577
Reporting
Material Weakness in Internal Control Over Compliance and Material Noncompliance
Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective
internal control over the federal award that provides assurance that the entity is managing
the federal award in compliance with federal statutes, regulations, and conditions of the
federal award.
Condition: The Organization’s final lost revenue calculation identified as eligible and claimed
under the Provider Relief Fund program did not agree to the amount claimed in the report
submitted to the Department of Health and Human Services for Period 1.
Cause: The Organization recalculated lost revenue and noted multiple adjustments to the
amount that could be claimed.
Effect: The difference in what was accurately calculated compared to what was reported led
to an incorrect filing and a claim of more support for lost revenue than was needed.
Questioned Costs: None reported.
Context: Lost revenue claimed in the report to the Department of Health and Human
Services totaled $3,161,203. After corrections were made to the lost revenue support
calculation, lost revenues should have been $3,278,318 for a difference of $117,115.
Repeat Finding from Prior Years: No
Recommendation: We recommend that management reviewed their process and
procedures to include monitoring over amounts reported relating to lost revenue amounts
and the related calculation.
Views of Responsible Officials: Management agrees with the finding.