FAC Explorer

Finding 20975 (2022-001)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-09-28
Audit: 22796
Organization: Olmsted Medical Center (MN)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: There was a significant deficiency in internal controls, leading to unsupported expenses submitted for reimbursement from the Provider Relief Fund.
  • Impacted Requirements: Funds from the PRF and ARP must only cover expenses with proper documentation; unsupported costs could lead to improper reimbursements.
  • Recommended Follow-Up: Management should review PRF and ARP guidelines to ensure all reimbursement requests are backed by paid invoices.

Finding Text

Federal Agency: U.S. Department of Health and Human Services Federal Program Title: Provider Relief Fund and American Rescue Plan AL Number: 93.498 Award Period: January 1, 2022 ? June 30, 2022 (Period 3) and July 1, 2022 ? December 31, 2022 (Period 4) Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: PRF and ARP funds cannot be used to cover expenditures for which support of the expense cannot be provided. Condition and Context: During our testing, we noted an amount that was included on the report as an expense, but the expense was subsequently reversed. Cause: Management oversight in submitting costs for reimbursement without adequate support and payment. Effect: Potential to receive improper reimbursement from the Provider Relief Fund. Questioned Costs: $77 Repeat Finding: No Recommendation: We recommend that management review the PRF and ARP guidelines to make sure amounts requested for reimbursement are supported by paid invoices. Management?s Response: Management will review reporting requirements to ensure proper reporting in future periods. However, it is noted there was sufficient unreimbursed expenses to support the PRF and ARP distributions received.

Corrective Action Plan

U.S. Department of Health and Human Services Olmsted Medical Center (the Medical Center) respectfully submits the following corrective action plan for the year ended December 31, 2022. Audit period: (PRF Phase 3 and 4 Reports) The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS?FEDERAL AWARD SINGLE AUDIT U.S. Department of Health and Human Services 2022-001 Provider Relief Fund ? Assistance Listing No. 93.498 Recommendation: We recommend that management review the PRF and ARP guidelines to make sure amounts requested for reimbursement are supported by paid invoices. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Medical Center will review reporting requirements to ensure proper reporting in future periods. However, it is noted that there was unreimbursed expenses to support the PRF and ARP distributions received. Name(s) of the contact person(s) responsible for corrective action: Matthew Peterson, Controller Planned completion date for corrective action plan: Implemented If the U.S. Department of Health and Human Services has questions regarding this plan, please call Matthew Peterson, Controller at 507-529-6615.

Categories

Questioned Costs Internal Control / Segregation of Duties Cash Management Reporting Significant Deficiency

Other Findings in this Audit

  • 597417 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.498 Provider Relief Fund $5.83M