Finding 1078810 (2023-001)

Finding 2023-001: Allowable Cost/Cost Principles – Unsupported PRF expenses Federal Agencies U.S. Department of Health and Human Services Program Name (Federal Assistance Listing Number) COVID-19 - Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution (93.498) Criteria or specific requirement Guidance provided by the Health Resources & Services Administration (“HRSA”) for the PRF program requires Providers to maintain supporting documentation which demonstrates that costs which incurred during the Period of Availability and to ensure that adequate documentation is maintained. Condition The Center reported healthcare related expenses of $219,968 in the PRF Period 5 report. Of these costs, management could not locate supporting documentation for $73,127 of expenses. Therefore, total reported costs reported exceeded supported expenses by $73,127 which are considered to be unallowable costs. Cause Due to changes in management personnel, invoices supporting $73,127 in healthcare related expenses submitted for PRF could not be located by the new management team. Effect Although the Center reported expenses that are deemed to be unallowable costs, management also reported lost revenues that exceeded amounts provided by HRSA during PRF reporting period 5 and prior that can be used to replace the unallowable costs. Questioned Costs None Context We requested a listing of healthcare related expenses which were used to prepare the Period 5 submission. Management disclosed that they could not locate support for $73,127 of costs on the submission. We have tested remaining expenses without exceptions. Identification of a repeat finding No Recommendation Management should contact HRSA and amend their PRF reporting to replace $73,127 of healthcare related costs with excess lost revenue. Views of responsible officials See corrective action plan