Finding Text
Federal Program Information
Federal Agencies: Department of Health and Human Services (“HHS”)
Awards: Assistance Listing Number 93.498 COVID 19 – Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution
Award Periods: Period 3 – January 1, 2021 to June 30, 2022
Period 4 – June 30, 2021 to December 31, 2022
Description: Review and Approval of the expenditures included in the HRSA portal submission
Type of Finding: Significant Deficiency in Internal Control Over Compliance
Criteria
In accordance with Title 2 U.S. Code of Federal Regulations, Part 200.303, Internal controls, “Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.”
The terms and conditions of the award require the recipient to submit reports as the secretary of HHS determines are needed to ensure compliance with conditions that are imposed on the payment, and such reports shall be in such form, with such content, as specified by the secretary of HHS in future program instructions directed to all recipients.
Condition
The System did not have appropriately designed internal controls in place over the COVID 19 Provider Relief Fund (“PRF”) grant awards related to the review and approval of the expenditures included in the U.S. Health Resources and Services Administration (“HRSA”) portal submission.
Cause
Management did not design internal controls or retain evidence of review and approval of the allowability of expenditures submitted within the HRSA portal.
Effect or potential effect
The expenditures included in the HRSA portal submission could be inaccurate or information reported to HRSA portal may be incomplete or inaccurate.
Questioned costs
None.
Identification of a repeat finding
This is a repeat finding and relates to prior year finding 2021-002.
Context
The System submitted a total of 9 reports within the HRSA portal during Period 3 and Period 4. The total PRF payments received by the System was $12,424,630. We tested 5 HRSA portal submissions that had total payments from HRSA amount to $11,977,661. Management did not retain documentation to support review and approval of the allowability of the expenditures entered in the HRSA portal. Audit procedures identified no questioned costs as it related to expenditures included within the HRSA portal submission.
Recommendation
Management should design internal controls related to the review of the allowability of expenditures for the HRSA portal submission to ensure that the reported amounts are accurate and retain evidence of this review.
View of responsible officials
Management concurs with the finding and will implement procedures to ensure that HRSA reporting reports are prepared by individuals with HRSA reporting experience and reviewed by management prior to submission.