Finding Text
Finding 2021-004 Program Name/CFDA Title: Provider Relief Fund Federal Assistance Listing Number: 93.498 Federal Agency: U.S. Department of Health and Human Services Type of Finding: Noncompliance, Significant Deficiency Questioned Cost: None Compliance Requirement: Allowable Costs/ Cost Principle Condition: During the audit, it was determined the District did not initially report expending all of its Provider Relief Funds within the period of availability. Based on its initial Provider Relief Fund report submitted, the District received more Provider Relief Funds than it expended using lost revenues but did not return the excess funds when the District filed its Period 1 portal submission. However, HRSA allowed the District to re-file its report at a later date with additional identified allowable expenses, and HRSA provided confirmation that the District is not required to return any of the grant funds. Criteria: The Provider Relief Funds were provided under the Coronavirus Aid, Relief, and Economic Security Act (Pub. L. No. 116-136, 134 Stat. 563) and are to be used to prevent, prepare for, and respond to coronavirus and that the funds shall reimburse the recipient only for healthcare related expenses or lost revenues that are attributable to coronavirus and costs not reimbursed by another source. The funds were required to be spent by June 30, 2021. Cause: As a result of the COVID-19 pandemic, the finance team were faced with administrative and operational matters requiring immediate attention to help ensure the District remained operational. The constraints resulted in management’s oversight of spending the Provider Relief Funds on allowable expenses by the deadline to use the funds. Effect: The District received more Provider Relief Funds than it reported as eligible expenses for reimbursement and the District did not return the excess funds when filing its Period 1 portal submission. As described above, it was later confirmed by HRSA that the District is not required to return any of the grant funds. Recommendation: We recommend that management comply with all the terms and conditions of the Provider Relief Funds. We also recommend management review expenditures before the end of grant deadlines to verify all eligible expenses have been accounted for and reported properly. View of Responsible Management agrees with the finding above. Officials: