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FINDING 2022-003 – Reporting, Non-compliance (Material Weakness) Federal Program: U.S. Department of Health and Human Services – ALN 93.498, COVID-19 Provider Relief Fund (PRF), U.S. Department of Agriculture – ALN 10.766, USDA Community Facilities Loans and Grants Cluster Criteria: 2 CFR Part 200.303(a) states that the auditee must establish and maintain effective internal control over the federal award that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statutes, regulations, and terms and conditions of the federal award. Specific criteria are established by the U.S. Department of Health and Human Services (HHS) with respect to allowable cost and reporting requirements for this program, including: Section 7 of the Data Elements of the Provider Relief Fund Distributions and American Rescue Plan Rural Distribution Reporting Requirements states that “The reporting entity must enter other assistance received by quarter during the period of availability. If the reporting entity is reporting on behalf of subsidiaries, the assistance received for each category must be aggregated across each of the subsidiaries included in the report.” Section 200.512 of the Uniform Guidance states that the audit, the data collection form, and the reporting package must be submitted within 30 calendar days after the auditee receives the auditors’ report or nine months after the end of the audit period (whichever is earlier). Condition and Context: Internal controls surrounding the review process performed were not effective in detecting and correcting the proper reporting prior to submission. In the Hospital's Health Resources and Services Administration (HRSA) Period 4 reporting in the PRF reporting portal, the Hospital erroneously entered $100,000 as other assistance for Federal Emergency Management Agency (FEMA) programs. The $100,000 related to Rural Health Clinic COVID-19 Testing and Mitigation funds received and was also properly entered as such resulting in a duplication error of $100,000. Additionally, The Hospital did not complete and submit its audit report prior to the required deadline. Cause and Effect: Management review was not effective in detecting and correcting the omission of reporting for other assistance received by the Hospital or the incorrect reporting of funds. The Hospital was not in compliance with the audit filing requirement. Questioned Costs: None Repeat Finding: Yes, See 2021-003. Recommendation: We recommend that the Hospital strengthen internal controls to prevent errors in reporting. We recommend the Hospital ensure future audits are completed and submitted in a timely manner. Views of Responsible Officials of the Auditee: Management agrees with the finding and the auditors’ recommendation. See Management’s full response in the Corrective Action Plan at the end of this report.