Finding 1073783 (2023-002)

-
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2024-09-19

AI Summary

  • Core Issue: Funds were used to buy an additional condo unit without written approval from the PRF team at HRSA.
  • Impacted Requirements: Funds must be used for facility expenses that support patient treatment and infection control, as per HRSA guidelines.
  • Recommended Follow-Up: Verify the appropriateness of the condo purchase and obtain written confirmation from HRSA regarding fund usage.

Finding Text

CONDITION: FUNDS WERE USED TO PURCHASE AN ADDITIONAL CONDO UNIT LOCATED IN THE BUILDING IN WHICH THE ORGANIZATION OWNS AND OCCUPIES ITS OFFICE SPACE LOCATED AT 8 COMMERCE DR, ATKINGSON, NH. THE AUDITORS WERE UNABLE TO OBTAIN WRITTEN DOCUMENTATION RECEIVED BY THE ORGNAIZATION FROM THE PROVIDER RELIEF FUND (PRF) TEAM AT THE HEALTH RESOURCES AND SERVICES ADMINISTRATION (HRSA) INDICATING THAT THE FUNDS COULD BE USED FOR THIS PURPOSE. CRITERIA: FUNDS CAN BE USED FOR FACILITY EXPENSES SUCH AS LEASE OR PURCHASE OF PERMANENT OR TEMPORARY, STRUCTURES, OR TO RETROFIT FACILITIES TO ACCOMMODATE REVISED PATIENT TREATMENT PRACTICES TO SUPPORT INFECTION CONTROL DURING THE PERIOD OF PERFORMANCE. CAUSE: MANAGEMENT RECEIVED VERBAL CONFIRMATION FROM THE PRF TEAM AT HRSA ON OCTOBER 20, 2022 THAT THE FUNDS COULD BE USED TO PURCHASE THE ADDTIONAL CONDO UNIT AT 8 COMMERCE DRIVE. EFFECT: THE USE OF FUNDS TO PURCHASE THE CONDO UNIT COULD BE DISALLOWED. CONTEXT: THE COST OF THE CONDO UNIT AND TOTAL QUESTIONED COSTS OF $284,240. RECOMMENDATION: THE ORGANIZATION SHOULD AGAIN VERIFY THAT THE COST IS ALLOWED AND OBTAIN WRITTEN DOCUMENTATION FROM THE PRF TEAM AT HRSA.

Categories

Questioned Costs Procurement, Suspension & Debarment Period of Performance

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.778 Medical Assistance Program $659,702
93.498 Provider Relief Fund $503,810
84.181 Special Education-Grants for Infants and Families $355,430
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $51,892
93.667 Social Services Block Grant $39,166