Finding 1055855 (2023-003)

FINDING: 2023-003 ALLOWABLE COSTS Condition: During the performance of our audit engagement procedures, we identified some reported costs that were duplicated. Criteria: Provider Relief Funds are to be used to prevent, prepare for, and respond to coronavirus and the funds shall reimburse the recipient only for health care related expenses or lost revenues that are attributable to coronavirus. Cause: Lack of controls led to oversight in preparation of the costs attributable to coronavirus, which led to certain costs being duplicated in the reporting. Effect: The Organization's internal controls over compliance related to payroll were not effective and as a result caused an error in reporting. Questioned Costs: $2,450,733 Recommendation: We recommended the Organization put in place controls over compliance that mitigate the risk of errors in reporting. It was noted that the total unused lost revenues far exceeded the amounts used in the reporting period. Additional unused lost revenue would have been used had the expenses been reported appropriately. Management Response: Management will review calculations and support for all payroll expenditures to ensure accuracy in future reporting. Management also notes that they had sufficient unused lost revenues to cover the duplicated expenses that were reported incorrectly.