Finding 1076845 (2023-002)

Assistance Listing #93.498 Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distributions Material Weakness and Material Noncompliance Criteria: The Department of Health and Human Services provided terms and conditions associated with the Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distributions. Those terms and conditions outlined the usages of the PRF distributions received, specifically related to expenses. PRF distributions should only be used to prevent, prepare for, and response to the coronavirus that have not been reimbursed from other sources or that other sources are not obligated to reimburse. Management should have effectively designed controls to prevent, or detect and correct, noncompliance related to the usage of PRF distributions. Condition: The System’s internal control over Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distributions resulted in ineligible costs reported on the Department of Health and Human Services PRF portal submission for Princeton Community Hospital. Cause: Lack of effectively designed and implemented controls, including oversight and detail review of expenditures submitted through the Department of Health and Human Services PRF portal. Effect: The System overstated supplies and payroll expenses submitted through the Department of Health and Human Services PRF portal for Princeton Community Hospital. Questioned Costs: Unknown. Context: Expenses included in the portal submission for Princeton Community Hospital were sampled and policies for these expenses were obtained. Of the population, supplies and payroll expenses entered into the PRF portal were found to not follow the terms and conditions associated with the Provider Relief Fund (PRF) and American Rescue Plan (ARP) Rural Distributions as they were not able to be directly tied to COVID-19. Identification as a Repeat Finding: N/A Recommendation: Effective controls over compliance should be implemented to ensure expenditures submitted through the Department of Health and Human Services PRF portal meet the criteria established in the terms and conditions. Views of Responsible Officials: See corrective action plan.