Finding Text
Assistance Listing Number, Federal Agency, and Program Name - 93.498, Department of Health and Human Services, Provider Relief Fund and American Rescue Plan Rural Distribution
Federal Award Identification Number and Year - N/A
Pass through Entity - N/A
Finding Type - Significant deficiency
Repeat Finding - No
Criteria - According to the Post Payment Notice of Reporting Requirements issued by the U.S. Department of Health and Human Services (HHS) dated October 7, 2022, the reporting entity must report on expenses paid for with payments received through the general and targeted distribution payments. Such expenses must be those that another source has not reimbursed and is not obligated to reimburse. HRSA considers unreimbursed expenses attributable to COVID-19 first in the overall use of funds calculation.
Condition - WakeMed reported duplicate expenditures within the Period 2 portal submission.
Questioned Costs - None
Identification of How Questioned Costs Were Computed - None
Context - WakeMed entered expenditures totaling $941,790 into the Period 1 portal submission. WakeMed then reported the same expenditures into the Period 2 portal submission.
Cause and Effect - Management misunderstood the functionality of the reporting portal site and reported the same expenses from Period 1 into the Period 2 portal submission. The duplicate expenses reported in Period 2 were improperly applied against Period 2 funding received, and, as a result, lost revenue used in determining the total Provider Relief Funds earned were improperly calculated.
Recommendation - Management should review all reporting requirements for the grant prior to submission of required reports.
Views of Responsible Officials and Planned Corrective Actions - Management agrees with the finding as reported. WakeMed reviewed the portal submission to determine the impact of the error on the amount of Provider Relief Funds recognized and reported on the SEFA. WakeMed has concluded that there was carried forward lost revenue of $26.4 million that is eligible to be applied to the Period 2 funds of $10.9 million. Therefore, there is no impact on the amounts reported on the SEFA. WakeMed has implemented additional review procedures for grant report submissions to ensure the accuracy of the reports in accordance with granting agency’s reporting requirements.