Finding 12888 (2022-001)

Material Weakness
Requirement
L
Questioned Costs
$1
Year
2022
Accepted
2023-03-29
Audit: 17350
Organization: Eastway Corporation (OH)

AI Summary

  • Core Issue: The Organization failed to submit required Provider Relief Fund reporting by the March 31, 2022 deadline due to the unexpected passing of the designated reporter.
  • Impacted Requirements: Non-compliance with reporting criteria may lead to the repayment of $277,043 in Provider Relief Funds.
  • Recommended Follow-Up: Implement written policies to assign primary and secondary reporting responsibilities, and designate an employee for oversight of the reporting process.

Finding Text

2022-001 Provider Relief Fund and American Rescue Plan (ARP) Rural Distribution Assistance Listing # 93.498 U.S. Department of Health and Human Services Criteria: Special reporting of the Provider Relief Fund amounts is to be submitted to the Health Resources Services Agency (HSRA) through the Provider Relief Fund Reporting Portal. Recipients of Period 2 payments were required to complete the reporting by March 31, 2022. Condition: Reporting was not submitted to HRSA on the Provider Relief Fund Reporting Portal for the Period 2 funds by the deadline of March 31, 2022. Questioned Costs: $277,043 Cause: The person the Organization tasked with completing the required reporting passed away prior to submission date. The Organization did not have policies or procedures in place that would automatically designate a secondary person to complete the reporting function. Effect: The failure to report may result in repayment of the Provider Relief Funds received within Period 2. Recommendation: The Organization should establish written policies and procedures to ensure there are individuals designated with primary and secondary responsibility of grant reporting. Management should also consider designating an employee to oversee and monitor the program to provide proper oversight of the process. Management Response: See Management?s Corrective Action Plan on page 42.

Corrective Action Plan

2022-001 (a) Comments on Findings and Recommendations: While management concurs with the finding and auditors? recommendation to enhance internal controls to ensure reports are filed timely, it believes the failure to report the Period 2 funds was not due to neglect but simply due to the untimely death of an employee. After the death of the Organization?s employee, management called the HRSA Provider Support Line, prior to the original due date of the reporting deadline, and was told that all reports had been filed. The Organization is currently working with HRSA to determine if an exception to the late filing can be obtained for reasonable cause based upon the previously mentioned circumstances. The Organization believes it has fully earned the Provider Relief Funds as it had sufficient lost revenues to support the need for the funding. (b) Action(s) Taken or Planned: Management is aware of the requirements related to the reporting submission. Management intends to implement proper procedures and policies for all grant reporting by June 30, 2023. Furthermore, internal controls over the program are being strengthened to prevent future non-compliance.

Categories

Questioned Costs Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 589330 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.267 Continuum of Care Program $1.12M
14.157 Supportive Housing for the Elderly $1.00M
14.181 Supportive Housing for Persons with Disabilities $390,051
93.958 Block Grants for Community Mental Health Services $383,713
93.667 Social Services Block Grant $377,432
93.498 Provider Relief Fund $277,043
14.195 Section 8 Housing Assistance Payments Program $211,488