Finding Text
Finding: Reporting and Activities Allowed or Unallowed, Allowable Costs/Cost Principles Federal Assistance Listing No. 93.498 COVID-19 Provider Relief Fund and American Rescue Plan (ARP) U.S. Department of Health and Human Services Criteria or Specific Requirement – Reporting (45 CFR 75.342) and Activities Allowed or Unallowed and Allowable Costs/Cost Principles (Pub. L. No. 116-136, 134 Stat. 563 and Pub. L. No. 116-139, 134 Stat. 622 and 623). The Provider Relief Fund (PRF) was established in the Coronavirus Aid, Relief, and Economic Security Act (CARES Act, P.L. 116-136) to reimburse, through grants or other mechanisms, eligible health care providers for increased expenses or lost revenue attributable to Coronavirus Disease 2019 (COVID-19). Entities that receive more than $10,000 (either one time or in the aggregate) are required to report the uses of their funds, including the lost revenue reimbursement and documentation of how the lost revenue was calculated. In addition, the Organization is required to implement and maintain internal controls over financial reporting. Condition – The Organization submitted incorrect figures reported for Expenses in the Period 1 Health Resources & Services Administrator report (HRSA). Questioned Costs – $1,107,540 was the total amount of expenses determined to be over-reported in period 1 reporting portal. Context – The errors were the result of a keying error where the amounts in Supplies and Other Healthcare Expenses were duplicated. There were also general and administrative expenses submitted based upon an allocated percentage of total expenses incurred that was unable to be fully substantiated Effect – The Organization submitted expenses under the PRF program that were incorrect. Cause – There was no formal approval of final report prior to submission to HRSA. Identification as a Repeat Finding – Not a repeat finding Recommendation – The Organization should continue to improve its formal review of HRSA report prior to submission. View of Responsible Official and Planned Corrective Actions – The Organization agrees with the finding. See separate report for planned corrective actions