Finding 1062149 (2022-002)

Program: Provider Relief Fund Federal Agency Name: U.S. Department of Health and Human Services Federal Award Number: N/A Federal Award Year: 2021 – 2022 Federal Assistance Listing Number: 93.498 Compliance Requirement: Other – Inaccurate Reporting on the Schedule of Expenditures of Federal Awards Criteria According to 2 CFR 200.510(b), a recipient of federal awards is required to prepare a schedule of expenditures of federal awards (Schedule) for the period covered by the entity’s financial statements, which must include the total Federal awards expended as determined in accordance with 2 CFR 200.502. Additionally, CFR 200.303 requires non-Federal entities receiving federal awards to establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure federal expenditures are accurately and completely reported on the Schedule. Conditions Found QHS did not have adequate internal controls related to the reporting of expenditures on the Schedule for the Provider Relief Fund. Specifically, QHS did not have a control to reconcile the Provider Relief Funds received and submitted on the Health Resources and Services Administration (HRSA) Provider Relief Fund reporting portal to the amounts reported on the Schedule. As a result, QHS determined that $5,000,000 of Provider Relief Fund expenditures were inadvertently omitted from the June 30, 2022 Schedule. Cause In discussing the conditions with QHS management, they stated it was caused by failure to implement a reconciliation control related to the Provider Relief Funds received and submitted on the HRSA Provider Relief Fund reporting portal to the amounts reported on the SEFA. Effect Failure to establish effective internal controls regarding the financial reporting for the preparation of the Schedule may prevent QHS from completing an audit in accordance with timelines of Uniform Guidance. Questioned Costs Not applicable.Statistical Sample Not applicable. Repeat Finding This finding is not a repeat finding in the immediately prior audit. Recommendation We recommend that QHS implement a system of internal control that is designed and operating effectively to ensure the Schedule is complete and accurate. Views of Responsible Officials QHS agrees with the finding and accepts the recommendation.