Finding 1135604 (2023-002)

COVID-19 – Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing Number 93.498 Criteria: Reporting Condition: The District is required to prepare and submit the Period 4 Provider Relief Fund report to the U.S. Department of Health and Human Services. This report is to be prepared using accurate financial information and submitted by the deadline established. Questioned Costs: None. Context: The Period 4 Provider Relief Fund report was tested. The District selected Option 3 to report lost revenues. An error in the input of lost revenues was identified that resulted in lost revenues being misstated by approximately $6.5 million. After correcting the error, there is sufficient lost revenue to cover amounts received and, as such, there are no questioned costs. Effect: Errors were made in the input of lost revenue. Lost revenue was not accurately reported. Cause: Internal controls over compliance were not in place to ensure the District properly input lost revenue in their report under Option 3. Recommendation: Policies and procedures over federal grant reporting should be modified to ensure reports are prepared using complete and accurate information. Views of responsible officials and planned corrective actions: See attached corrective action plan for the District’s response to finding.