Finding Text
2021-001 Allowable Costs
Federal Agency: U.S. Department of Health and Human Services
Federal Program Title: Provider Relief Fund
AL Number: 93.498
Award Period: April 1, 2020 – June 30, 2020 (Period 1)
Type of Finding: Significant deficiency in Internal Control over Compliance and Other Matters
Criteria or specific requirement: Provider Relief Fund cannot be used to cover unsupported or inaccurate expenditures.
Condition and Context: During our testing we noted 6 instances in which the supporting invoice for a contract labor expense was not able to be identified.
Cause: There was a change in accounting systems subsequent to the period under audit, and the previous system was not digitized. With the change in the system, previous paper invoices were unable to be obtained.
Effect: Potential to receive excess reimbursement from the Provider Relief Fund.
Questioned Costs: $9,964
Repeat finding: No
Recommendation: We recommend that management implement a system that allows for easy identification of any copies of invoices paid.
Management’s Response: Management has since updated their accounting system which is now digitized and allows for them to obtain any invoices that have been paid by the Hospital. However, it is noted there was sufficient lost revenue to support the PRF distributions received in the period under audit even with the questioned costs considered.