Finding Text
Federal agency: U.S. Department of Health and Human Services Other Programs
Federal program title: COVID-19 Provider Relief Funding and American Rescue Plan Rural Distribution
CFDA Number: 93.498
Pass-Through Agency: N/A
Pass-Through Number(s): N/A
Award Period: Period 4
Type of Finding: Material Weakness in Internal Control in and over Compliance
Compliance Requirement: Reporting
Criteria or specific requirement: Surrounding reporting activities, the Medical Center’s internal controls should be designed to assure all reporting completed under program guidelines.
Condition: During our testing, we identified the Medical Center did not have internal controls in place to ensure reporting was completed in accordance with HHS guidelines as the Medical Center reported the same COVID-19 expenses in Period 2, and Period 4 reports, thus overstating the amount of reported covid expenses by approx. $4.5 million.
Questioned costs: None
Context: Based on the portal configuration the Medical Center believed accumulated costs, since the beginning of the pandemic, should be entered into Period 4 vs. just the incremental amounts exclusive to Period 1 and 2.
Cause: The design of the portal was unclear as the reporting for expenses and lost revenues are handled differently.
Effect: The Medical Center’s internal controls around compliance were not effective in identifying allowable expenses associated with COVID-19.
Repeat Finding: N/A
Recommendation: We recommend the Medical Center design controls to ensure that reporting is completing in accordance with latest HHS guidelines.
Views of responsible officials: There is no disagreement with the audit finding.