Finding 1106562 (2022-004)

Assistance Listing Number, Federal Agency, and Program Name 93.498, U.S. Department of Health and Human Services, COVID 19: Provider Relief Fund and American Rescue Plan Rural Distribution Finding Type Material weakness Repeat Finding Yes Prior year finding number 2021 003 Criteria According to 2 CFR § 200.303, HealthSource must establish and maintain effective internal controls over federal awards that provide reasonable assurance that the nonfederal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition HealthSource does not have a review process in place related to the lost revenue calculation input into the required reporting submissions to the U.S. Department of Health and Human Services for the Provider Relief Fund program. HeathSource also did not have a review process in place for the required submissions. Questioned Costs None Context There was no independent review completed on the lost revenue calculation or the reporting submission to evaluate the completeness and accuracy of the submission. Cause and Effect The lack of an independent review of the lost revenue calculation and the reporting submission could result in an increased risk of incomplete or inaccurate information included in the reporting submission. Recommendation HealthSource should implement a process to ensure an independent review of the reporting submission and the documents used to input information into the reporting submission, such as the lost revenue calculation, is completed prior to finalization. Views of Responsible Officials and Corrective Action Plan Management agrees with the finding and will implement a process to ensure an independent review of the reporting submission and its supporting documents is completed prior to finalization.