Finding 1208814 (2022-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2026-04-24
Audit: 399700
Organization: Sheridan Community Hospital (MI)
Auditor: REDW LLC

AI Summary

  • Core Issue: The Hospital could not provide proof of submitting required PRF reports, raising concerns about compliance with reporting requirements.
  • Impacted Requirements: Failure to maintain documentation may lead to noncompliance with PRF reporting and Uniform Guidance record retention, risking inaccuracies in federal award expenditures.
  • Recommended Follow-Up: Verify PRF reporting status in the HRSA portal and obtain official submission evidence; if not available, contact HRSA Provider Support for confirmation and remediation guidance.

Finding Text

Federal Program Information: Program: Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Funding Agency: U.S. Department of Health and Human Services (HHS), Health Resources and Services Administration (HRSA) Assistance Listing Number: 93.498 Criteria or Specific Requirement: HRSA PRF Reporting Requirements and Terms and Conditions require recipients subject to PRF reporting to submit reports through the PRF Reporting Portal by HRSA-established deadlines and in accordance with the instructions posted on HRSA’s website. Condition/Context: The Hospital was unable to produce copies of PRF reports submitted via the HRSA PRF Reporting Portal or other evidence (e.g., confirmation emails, portal receipts) that the reports were filed for the applicable reporting period(s). As a result, we were unable to verify whether required PRF reporting was completed timely and accurately, or to reconcile the Hospital’s Schedule of Expenditures of Federal Awards (SEFA) amounts for PRF to the HRSA PRF report(s), as contemplated by the compliance requirements. Cause: The Hospital did not maintain documentation evidencing submission of the PRF report(s) (e.g., copies of submitted reports, portal confirmation receipts, or other verifiable proof). Effect: • Potential noncompliance with PRF reporting requirements and Uniform Guidance record retention requirements. • Increased risk that PRF amounts reported on the SEFA may be inaccurate or incomplete if not supported by the PRF report(s), which could affect the Single Audit and related reporting. • Potential HRSA enforcement actions for failure to meet PRF reporting requirements, including possible repayment or other sanctions if reports were not filed timely or as required. Questioned Costs: None. Auditor’s Recommendation: Verify PRF reporting status within the HRSA PRF Reporting Portal and retrieve official evidence of submission (e.g., confirmation emails, portal receipts, or report PDFs). If unavailable, contact HRSA Provider Support to obtain formal confirmation of filing or guidance on remediation. Views of Responsible Officials: The hospital staff member – reimbursement analyst- who no longer works for the hospital - submitted PRF reports in the portal within timelines, but he did not save copies of the reports. We were only able to get the blank templates from his company folder. I confirmed with the then chief compliance officer for Sheridan Community Hospital that she signed the reports in the portal before they were submitted. During the audit, we were unable to produce these reports, however, we are in the process of retrieving these reports from the HRSA portal to keep with our records as proof that it was completed per the auditor’s recommendation above.

Corrective Action Plan

The hospital staff member – reimbursement analyst- who no longer works for the hospital - submitted PRF reports in the portal within timelines, but he did not save copies of the reports. We were only able to get the blank templates from his company folder. I confirmed with the then chief compliance officer for Sheridan Community Hospital that she signed the reports in the portal before they were submitted. During the audit, we were unable to produce these reports, however, we are in the process of retrieving these reports from the HRSA portal to keep with our records as proof that it was completed per the auditor’s recommendation above.

Categories

Reporting

Other Findings in this Audit

  • 1208815 2022-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution $3.68M